Measure a closed trade in units of what you risked, so trades of different sizes compare fairly.
R-multiple = (exit − entry) ÷ (entry − stop). The same formula covers both directions: for a short, the stop sits above the entry, so the signs flip on their own.
Example: long at 100 with a stop at 95 risks 5 (1R). Exiting at 110 is +2R; exiting at 97.50 is −0.5R.
Dollar results mix up how good a trade was with how big it was. In R, a small winning trade and a large one are compared on the same scale, which is what makes setups comparable.
Use the INITIAL stop. R is defined by the risk you took on when you entered; moving the stop later changes your exit, not your R.
TradeGreen connects to your broker read-only and works out R-multiple, win rate, profit factor and expectancy for every setup, from your real fills.
Download on iPhone Get it on Google PlayEducational tool, not investment advice. TradeGreen describes trades that already happened and never recommends what to buy.