R-multiple targeting: how do you choose your target?

Targets in R — 1R, 2R, 3R — turn the exit into a multiple of the risk rather than a pip guess. Choosing the multiple means balancing win rate against payoff, and the data decides.

R-multiple targeting: how do you choose your target? — risk-reward diagram
A risk-reward ratio of 1 to 2

What's your target?

  • the R multiple you aim for
  • how you derived it from your results
  • how the target changes by setup or regime
R-multiple targeting: how do you choose your target? — pip movement diagram
How a pip moves the exchange rate

The risk-reward guide explains the trade-off behind the choice.

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