R-multiple

Profit or loss expressed as a multiple of your initial risk (R).

1 min

Why it matters

It standardizes performance across different setups and sizes.

Operational use: this is how the market taxes urgency. When it appears, slow down or size down.

Common trap

Not defining ‘R’ consistently, making results meaningless.

Example

You risk $100 (1R) and make $250 (2.5R).

Operational cue: if you can’t point to it on the chart, in the DOM, or in your broker logs, treat it as a story and trade smaller.

Notes

R-multiples make your strategy measurable.

If you see this repeatedly, you are in a different regime than your model assumes.
Regime change usually means position size change.
When in doubt: trade smaller, or don’t trade.