We measure our forex and stock trading performance using ‘R’ as we feel this is an honest and fair way of displaying our returns.
‘R’ represents ‘Risk’ and it measures the distance between the entry point of your trade and your stop loss order.
‘R’ is simply the amount of money risked on each trade.
Our clients can get a clear picture of how we are performing, can apply these trades to their own risk tolerance, and compare us to other analysis sites.
“The golden rule of trading is to keep losses at a level of 1R as often as possible and to make profits that are high-R multiples.” Van Tharp