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📈 R-Multiple Performance Tracker
R is what you risked, and every result divided by it becomes comparable. Lesson 85 is about what happens when R itself moves.
💡 R-Multiple = Truth
R-multiples normalize performance. They show how much you made relative to what you risked, making trades comparable regardless of size.
Why R-Multiples Matter More Than Dollars
Dollar P&L is misleading. R-multiples show the quality of your trades by measuring profit relative to risk.
💎 What is R?
R = Your initial risk per trade (distance from entry to stop)
If you enter at $100 with stop at $95, your 1R = $5 per share.
If you exit at $110, you made $10 per share = 2R
Real Example: Same $ P&L, Different Quality
✓ Trade A: High Quality
- Risk: $500 (1R)
- Profit: $1,000
- R-Multiple: +2R
- Quality: Excellent
❌ Trade B: Low Quality
- Risk: $2,000 (1R)
- Profit: $1,000
- R-Multiple: +0.5R
- Quality: Poor
Both made $1,000, but Trade A is 4X better quality. R-multiples reveal this truth.
R-Multiple Performance Standards
✓ Professional Benchmarks
- +3R or higher: Elite trade
- +2R to +3R: Good trade
- +1R to +2R: Acceptable trade
- 0R to +1R: Marginal trade
- -1R: Proper loss (followed plan)
- Below -1R: Disaster (didn't follow stop)
Average R-Multiple Target
Profitable traders average +0.5R to +1R per trade
This might sound small, but over 100 trades:
- +0.5R average × 100 trades = +50R total
- If 1R = $100, that's $5,000 profit
Consistency beats home runs.