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R-Multiple
Profit or loss measured in units of your initial risk, so every trade is scored on the same scale.
What it is
R is your risk per trade: the distance from entry to stop, in dollars. A trade that makes twice what it risked is +2R, and a full stop out loses 1R. Measuring in R normalizes every trade regardless of size, instrument, or account.
Why it matters
Points and dollars hide whether a plan's math adds up. R shows it: what decides the result is the size of the average win against the average loss, not only how often a trade wins.
NQ example ILLUSTRATION
Entry 15,250, stop 15,215 (35 points = 1R). Exit at 15,320 is +70 points = +2R. Four trades like that and six full stop outs net +2R across ten trades, even though more trades lost than won.