R-multiple
A trade’s result expressed as a multiple of the amount you risked on it.
In plain English
R is the initial risk. A trade that makes twice what it risked is +2R; one that stops out as planned is −1R. It lets you compare trades of different sizes on the same scale.
Example
Risk 100, make 250: the trade is +2.5R. Risk 100, lose 130 through slippage: −1.3R.
Risk ManagementTrading Strategies