R multiple (1R)

1R is the amount you risk on a trade: what you lose if the stop is hit. Every result can then be measured in R. A trade that makes three times its risk is a 3R win, and a full stop-out is a 1R loss. R lets you compare trades of any size and price.

Measuring in R separates the quality of your rules from the size of your account. Average R per trade is your expectancy, and the spread of R results shows how a strategy behaves.

Example. Risking ₹5,000 with a stop ₹30 below the entry, a trade that makes ₹15,000 is a 3R win.