What is R-Multiple?
The professional way to measure trade performance — and why it beats tracking dollar amounts.
The simple version
R-multiple (R stands for "Risk") measures a trade's result relative to what you risked. Instead of saying "I made $200," you say "I made 2R" — two times my initial risk.
Why it matters more than dollar amounts
Making $500 sounds great. But if you risked $2,000 to make $500, that is a poor result (0.25R). Losing $100 sounds bad — but if you risked only $50, that is a 2R loss that wiped out your edge.
R-multiple normalises every trade so you can compare performance across different position sizes, stocks, and time periods.
How it is calculated
If you risk $100 per trade (your "1R"):
- You profit $200 → that is +2R
- You lose $100 (stop hit) → that is −1R
- You profit $350 → that is +3.5R
On TradeMind AI
Every resolved signal shows its R-multiple. A signal with a target set at 2× the risk distance from entry has a target R of 2.0. When it hits the target, the actual R is 2.0. When the stop is hit, the R is −1.0.
The leaderboard ranks signals by R-multiple so you can see which calls generated the most value per unit of risk taken — a far more honest metric than just listing the biggest dollar winners.
See it in action
Every TradeMind AI signal shows confidence score, entry, stop, target, and R-multiple — all explained with tooltip hints when you hover the term.