R-multiples explained: how to actually measure your edge
If you want a single way to compare trades across accounts, currencies, and pairs, use R-multiples. R is the cleanest measure of edge because it strips away everything that isn't about the trade itself — account size, lot, currency conversion, commission drag.
The definition
R is the amount you were willing to lose on a trade if your stop hit. If you sized a trade to risk $200 between entry and stop, then 1R = $200. Your outcome is expressed as a multiple of that R:
- −1R = you got stopped out as planned.
- +2R = you made double what you would have lost.
- +0.4R = you closed early, before the full target.
- −0.7R = you closed at a partial loss before the stop.
Why R beats dollars
Two traders make $500 on a trade. Trader A risked $250. Trader B risked $1000. In dollars they're equal. In R, Trader A made +2R and Trader B made +0.5R. If both keep running their strategies, A compounds faster on the same capital.
Dollars also lose meaning across accounts. A $200 win on a $5k account is different from a $200 win on a $50k account. R normalizes.
Expectancy in R
Expectancy is the average R per trade across a sample. It's the only metric that tells you, long-run, whether a strategy earns or burns:
Expectancy = (win rate × average win R) − (loss rate × average loss R)
A strategy with 40 % win rate, +2.5R average wins, and −1.0R average losses has an expectancy of 0.4 × 2.5 − 0.6 × 1.0 = 0.4R per trade. Over 100 trades, that's +40R — which can be anywhere from $4k to $80k depending on how much you risked per trade.
How to log R correctly
Two mistakes to avoid. First, set R at trade entry, not at exit — if you move your stop after entry, the denominator still stays at the original risk, not the reduced one. Second, include commission and swap in the actual loss — at prop-firm volume these chip at edge more than traders realize.
Axiont logs every trade in R automatically. The MT5 Expert Advisor captures entry, initial stop, and target; R is computed at entry time and locked in. Commission and swap are auto-read from the closed deal history so nothing inflates the win side.