R-Multiples Explained
An R-multiple measures outcome relative to the risk you planned at entry.
- 1R = the dollar (or %) distance from entry to your initial stop
- A +2R winner made twice your risk
- A −1R loser lost your full planned risk
Why R beats raw P&L for learning
Two +$200 winners can be very different: one risked $50 (+4R), another risked $400 (+0.5R). Journaling in R shows whether your edge and execution are improving — not just whether the last tick was green.
Planned vs actual R
| Metric | Meaning |
|---|---|
| Planned R | Distance to stop / target at entry |
| Actual R | Realized P&L ÷ initial 1R risk |
| Capture ratio | Actual R ÷ planned target R |
If you often exit at +0.6R when the plan was +2R, the issue may be exits — not the setup.
How to use this in VaultCharts
- Define stop and targets in the trade plan before entry.
- After close, note actual R in your journal.
- Review weekly: average R, best setup class, early exits.