R-Multiple Calculator

Measure trade outcomes in units of initial risk, and total a series.

Please note: Trading carries substantial risk of loss. These calculators are planning tools, not trading advice, and no position sizing method prevents losses.

What the R-Multiple Calculator does

An R-multiple expresses a trade’s result as a multiple of the risk taken on it, where R is the distance from entry to stop. It makes trades of any size directly comparable, and turns a scattered track record into a single expectancy figure.

Formula

  • R = |Entry − Stop|
  • R-multiple = (Exit − Entry) ÷ R for a long, reversed for a short
  • Expectancy = Total R ÷ Number of trades

Inputs explained

InputUnitRequiredNotes
Calculateone of 2 optionsYes
Directionone of 2 optionsIn some modesShown Calculate is One trade, from prices.
Entry priceselected currencyIn some modesAccepts 0 or more. Shown Calculate is One trade, from prices.
Stop lossselected currencyIn some modesAccepts 0 or more. Shown Calculate is One trade, from prices.
Exit priceselected currencyIn some modesAccepts 0 or more. Shown Calculate is One trade, from prices.
Position sizeunitsOptionalAccepts 0 or more. Shown Calculate is One trade, from prices.
R-multiplestextIn some modesOne per trade. A full stop-out is −1. Shown Calculate is A series of R-multiples.
Risk per tradeselected currencyOptionalAccepts 0 or more. Shown Calculate is A series of R-multiples.
Currencyone of 10 optionsOptional

How to use it

  1. Choose Calculate and Currency.
  2. Fill in the remaining inputs the form shows for your choice.
  3. Select Calculate.

Worked example

A long entered at 100 with a stop at 95, exited at 115.

Entry
100
Stop
95
Exit
115
Direction
Long

Risk is 5 per unit and reward 15, so the trade returned 3R. On 200 units that is 1,000 risked to make 3,000.

Frequently asked questions

Why measure trades in R rather than currency?

Because currency results depend on position size, which varies. R strips that out, so a track record reflects decision quality rather than how much capital happened to be deployed.

What is a good expectancy?

Anything above zero is profitable over enough trades. 0.2R to 0.5R per trade is a solid discretionary system; consistently above 1R is exceptional and worth checking for survivorship bias.

Method and sources

Method. Each outcome expressed as a multiple of the risk taken, where 1R is the distance from entry to stop, allowing trades of different sizes to be compared.

Assumptions

  • Initial risk is defined at entry and not moved afterwards, which is what makes R comparable across trades.

Limitations

  • Moving a stop after entry breaks the unit: the R-multiples that follow are no longer measured against the risk actually taken.
  • R-multiples describe outcomes relative to risk, not profitability. A record of positive R with tiny position sizes earns little.

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