An R multiple is a trade's result divided by the amount it risked at the start. The risk — the money you would have lost had the stop loss been hit — is called 1R. A trade that made twice that is +2R; one that stopped out exactly as planned is −1R.
How is an R multiple calculated?
- 1R = distance from entry to the stop loss × money per unit of price per lot × lots.
- R multiple = the trade's net result ÷ 1R.
The stop that counts is the one the trade started with. A stop moved later changes how the trade ended, not how much was put at risk when you took it.
Worked example
Buy EURUSD at 1.1000 with the stop at 1.0950 — 50 pips away. At 0.20 lot a pip is worth about $2, so 1R is roughly $100.
- Closed for +$150 → +1.5R.
- Stopped out for −$100 → −1R.
- Stopped out, but slippage and commission made it −$118 → −1.18R.
Why do traders measure in R?
Because money hides the decision quality. A $300 win on a 3 lot trade and a $300 win on a 0.3 lot trade are completely different outcomes. R strips out position size and the symbol's value per pip, leaving only the question that matters: how did the result compare with what you were willing to lose? It is also the building block of expectancy, the average R you can expect per trade over many trades.
Mistakes that make R figures wrong
- Using the stop after it was moved. A stop pulled to break-even makes 1R zero, and the R becomes meaningless or infinite.
- Counting a trade with no stop as zero. Without a stop there is no 1R, so the trade has no R at all. Counting it as 0R drags every average towards zero.
- Using a far-away safety stop. If the real exit plan was closer than the stop on the server, the server stop overstates the risk and shrinks every R.
- Leaving costs out. Swap and commission are part of the result. Ignore them and a strategy can look positive while the account shrinks.
R multiple in ApeX Journal
ApeX Journal works out 1R from the stop each trade opened with, and the money per unit of price from that trade's own result rather than today's symbol settings, so an old trade keeps the R it really had. The net result includes swap and commission. Trades with no stop have no R and are left out of R statistics, with the count shown. For those, + Set on the Trade Detail page lets you enter the stop you had in mind; it stays labelled typed. Trades managed with virtual stops in ApeX Trade Manager use the stop from the Trade Manager's plan.
Where to find R for each trade in ApeX Journal →
Questions
Is an R multiple the same as the risk-reward ratio?
No. The risk-reward ratio is planned before the trade, from the distance to the stop and to the target. The R multiple is measured after the trade, from what actually happened. A trade planned at 1:3 can finish at +0.8R if it was closed early.
Why does a stopped-out trade show more than −1R?
Because the result includes slippage at the stop, commission and swap. A stop filled a few points worse during fast markets, plus costs, typically turns −1R into something like −1.1R or −1.2R.
Can a trade without a stop loss have an R multiple?
Not on its own, because 1R is defined by the stop. A journal can only give it one if you record the stop you intended, and that figure should be marked as entered by you rather than recorded by the broker.