Do you track your results in R?
R is the amount you risk per trade, and measuring results in R — "this month was +2.4R" — removes account size from the story and keeps you focused on process. Beginners often track only money, which amplifies emotions.
Have you switched to R?
- how the change felt
- what became clearer once money wasn't the unit
- how you explain R to someone new
The expectancy guide is built on R multiples.
Background: Risk-reward ratio, win rate and expectancy: the maths behind a trading edge
A high win rate can still lose money. See how win rate and risk-reward combine into expectancy, with break-even win rates and worked examples.
What is a good risk-reward ratio in forex?
There isn't one right ratio. What matters is expectancy, the win rate and ratio together. A 1:2 ratio breaks even at about 33% winners before costs, while a 1:1 ratio needs 50%.
How do you calculate trading expectancy?
Multiply the win rate by the average win and subtract the loss rate multiplied by the average loss. Measuring wins and losses in multiples of the amount risked (R) makes the result easy to compare.
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