Use R-Multiples Without Hiding Bad Decisions

Expressing outcomes in units of initial risk helps compare trades across instruments and position sizes. A gain of 2R means twice the amount initially at risk; a loss of 0.5R means half. The arithmetic is useful, but it can produce a clean statistic over untidy behaviour.

Freeze the original R

Record the initial stop, size, and intended account loss before entry. Do not rewrite R after widening a stop. The journal should preserve both the planned risk and the realised loss so the change remains auditable.

Add a separate execution grade. A profitable 3R outcome that ignored the exit rule is not the same evidence as a planned 3R trade. One describes market luck; the other may support repeatable process.

Review distributions over a meaningful sample, while also reading the chart notes. Summary numbers point toward questions. They do not explain the decisions by themselves.