Measure any trade in R, or paste a list of results to get your average R and expectancy.
R is your initial risk on a trade: the distance from entry to stop loss. An R-multiple expresses a trade's result as a multiple of that risk.
R-multiple = (Exit − Entry) ÷ (Entry − Stop)
Buy at 100 with a stop at 98 and you are risking 2 points, so 1R = 2. Exit at 105 and the trade made 5 points, or +2.5R. Exit at the stop and it is −1R.
R makes trades comparable regardless of market, position size or account balance. A +2R trade on EUR/USD and a +2R trade on NQ represent the same outcome relative to the risk you took.
The average of your R-multiples over many trades is your expectancy in R. A positive number means your strategy makes money over time; +0.3R means you earn 30% of your risk per trade on average.
Clarity Tracking calculates R for every synced trade with a stop loss and breaks average R down by setup, instrument and session.