Risk calculator
R multiple calculator
Express a trade as a multiple of what it risked, so results compare across symbols and account sizes.
R is the amount a trade risked. A trade that made twice what it risked is a 2R winner whether that was twenty dollars or two thousand, which makes R the only sensible way to compare a SPY trade against a small cap one.
Thinking in R also fixes the most common reporting error in trading, which is judging a month by dollars while the position sizes were changing underneath.
Notes
- The break even win rate is the figure to sit with. At 2R you can be wrong two times in three and still make money.
- A high win rate at low R and a low win rate at high R can produce identical results.
- Record every trade in R and the account size stops distorting the record.
Other calculators
Fifteen free indicators
Every GapAlgo indicator is public on TradingView, free, and needs no signup.
See the indicators