R-multiple

A trade’s result expressed as a multiple of its initial risk (the money distance from entry to the initial stop, which is 1R). A trade that made three times its risk is +3R; one stopped for the planned amount is -1R. R-multiples strip out account and position size so trades taken at different equity levels are directly comparable.

First used in Lesson 1.4 · Measuring trades honestly — the lesson that makes this term real.