R-Multiples and Trading Journal Metrics Explained

Last updated: November 2026 · 3 min read · Educational content, not financial advice

Key takeaways

R-multiple = result ÷ initial risk. A full stop-out is −1R, and winners are measured in multiples of that.
The key metrics are expectancy (average R), win rate, average win and loss, maximum drawdown in R, and the longest losing streak.
Ten trades prove nothing; use the formulas on a journal of 100+ trades and compare it with the calculator.

Everything on this site is measured in R: the amount you risk on a trade. Recording your trades in R lets you compare a $50 stop on one instrument with a $300 stop on another, a small account with a large one, and last month with this month. It is the common language of risk, and it turns a pile of trade results into numbers you can test against the calculator.

What an R-multiple is

The R-multiple of a trade is the result divided by the amount you initially risked:

R-multiple = Profit or loss ÷ Initial risk
For a long trade: (Exit − Entry) ÷ (Entry − Stop)

A trade stopped out at the planned stop is −1R.
A trade that makes twice the distance to the stop is +2R.
Exiting early at a small loss might be −0.5R; a break-even exit is 0R.
For a trade with partial exits, add the R from each part, weighted by its share of the position.

A 10-trade example

Here is a small journal, in R: +2.1, −1, −1, +3.4, −1, +1.2, −0.5, +2.0, −1, +0.8. These are the metrics that come out of it:

Metric	How it is calculated	Result
Total R	Sum of all trades	+5.0R
Expectancy	Total R ÷ number of trades	+0.5R
Win rate	Winning trades ÷ all trades	50%
Average win	Total of wins ÷ number of wins	+1.9R
Average loss	Total of losses ÷ number of losses	-0.9R
Profit factor	Gross profit ÷ gross loss	2.11
Maximum drawdown	Largest peak-to-trough fall in cumulative R	2.0R
Longest losing streak	Most losses in a row	2

Notice that the profit factor and the ratio of average win to average loss are the same here (2.11). That is only because there are as many wins as losses; in general they differ. Ten trades is also far too few to trust any of these numbers, as the sample-size guide shows. The example is only meant to show the calculations.

The metrics that matter most

Expectancy (average R): the single most important number. It should stay positive after costs.
Win rate and average win / average loss: the two ingredients of expectancy. Together they tell you what kind of strategy you run.
Maximum drawdown (in R): how deep the account fell. Compare it with your loss limits.
Longest losing streak: compare it with the streak probabilities for your win rate.
Profit factor: a quick summary; above 1 means profitable, but it ignores trade count.

Spreadsheet formulas

Put one trade result in R on each row, in column G (for example G2 to G101). Then, in Excel or Google Sheets:

Expectancy:       =AVERAGE(G2:G101)
Win rate:        =COUNTIF(G2:G101,">0")/COUNT(G2:G101)
Average win:     =AVERAGEIF(G2:G101,">0")
Average loss:    =AVERAGEIF(G2:G101,"<0")
Profit factor:    =SUMIF(G2:G101,">0")/-SUMIF(G2:G101,"<0")

For drawdown, add two helper columns. In H2 enter =SUM($G$2:G2) and copy it down (cumulative R). In I2 enter =MAX(0,MAX($H$2:H2))-H2 and copy it down (distance from the highest point). The maximum drawdown is then =MAX(I2:I101).

What else to record

The result is only part of a useful journal. Add columns for the date, instrument, setup name, planned entry, stop and target, the actual exit, and a short note on why you took the trade and whether you followed your rules. Tagging trades by setup lets you calculate expectancy for each one separately, and a column for rule breaks shows how much discipline costs or earns you. Add a screenshot if your platform allows it.

Using the journal with the calculator

Once you have a reasonable number of trades, enter your measured win rate and your average win in R (as the reward-to-risk ratio, with the average loss close to 1R) into the calculator. The expected results, the probability table and the Monte Carlo tab then show what that record implies for streaks and drawdowns over the next trades. Keep in mind the margins of error in the sample-size guide.

Try the numbers yourself

Enter your own measured win rate and ratio in the calculator.

Open the calculator

This guide is for education only. It is not financial advice or a trade recommendation, and trading involves substantial risk of loss. See the Terms of Service.