A risk/reward metric showing the ratio of profit or loss to the risk taken on a trade. For example, a 2R win means the profit is twice the risk.
Tracking R multiples helps traders assess their risk-reward consistency. A trader with a high R multiple can be profitable even with a lower win rate, while a trader with a low R multiple needs a high win rate to succeed.
A trader risks $100 per trade. If they take a trade that results in a $300 profit, their R multiple is 3R ($300 ÷ $100). If they lose $100 on another trade, the loss is -1R.
The average profit in dollars a trader earns on a winning trade. It measures profitability per successful trade.
The average loss in dollars a trader incurs on a losing trade. It reflects the risk exposure per unsuccessful trade.
The percentage of trades that result in a profit.
A measure of profitability, calculated as the ratio of total profits to total losses. A profit factor above 1 indicates a profitable strategy.
The total count of all trades executed within a specified period (usually a month).