Understand your results · 4 min read · Free lesson
Original risk and R
Understand the original risk budget behind an R calculation.
At a glance
Net result
+$100
Original monetary risk
$50
Result ÷ original risk
+2R
Illustrative example · Hypothetical amounts in one currency
Keep the original budget
R compares a recorded net result with the original monetary risk budget: R = net result ÷ original risk, using the same currency. The original budget is the starting reference, even if you later adjust the stop.
Use a monetary amount
A price distance alone is not a monetary risk budget. Quantity, contract value and currency can affect the amount at risk. In the illustration, a $100 net result divided by a $50 original budget is +2R. These are hypothetical values.
Leave unknown risk unknown
If the original budget was not recorded, historical R should remain unavailable. Do not substitute the eventual loss or guess a budget from the exit. The trade can still contribute to cash reporting. Pro adds R performance analysis; risk and execution records are available on Free and Pro.
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