A result measured in units of the planned risk. If you planned to risk $100 and made $250, that is +2.5R.
How traders use it: Lets you compare trades of different sizes and plan targets as multiples of risk (for example a first target at 1R). Planned R is a plan, not a prediction.
Common mistake: Quoting reward-to-risk without accounting for fees and slippage, or comparing R across trades with moved stops.
Related: Expectancy · Partial profits (scaling out) · Risk per unit
Used in: Risk per trade, R-multiples, and expectancy
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Concepts only. Education only, not financial advice. No pattern on this site has a published win rate.