LEVEL 4 · Building a Market-Study Workflow · LESSON 18
The R-Multiple Risk Framework
Use a pre-defined 1R unit to record planned risk and review outcomes consistently.
LEARNING OBJECTIVE
Use a pre-defined 1R unit to record planned risk and outcomes.
IN ONE SENTENCE
An R-Multiple expresses an outcome in units of risk defined before an exercise or trade. It gives records a common scale; it is not a return target or promise.
Basic concepts
R and 1RExplainClose
R is the pre-planned risk unit for one position. 1R equals that planned risk amount.
2RExplainClose
Two units of the defined risk, used to describe a recorded multiple rather than recommend a return.
Software walkthrough
Menu placement may vary by platform version. Use the current official guide when a label differs.
- 01
Step 01
Example: with a $10,000 account and 0.5% planned risk, 1R equals $50.
Check: Confirm the displayed settings match the selected inputs.
- 02
Step 02
2R is $100 in this example; it describes twice the risk unit, not a suggested result.
Check: Confirm the displayed settings match the selected inputs.
- 03
Step 03
In a review log, record the planned and observed result in R units and note execution differences.
Check: Confirm the displayed settings match the selected inputs.
Concept diagram
Study scenario
A $50 plan and hypothetical +$100 result is recorded as +2R; notation only.
No fixed return rate is recommended. Actual outcomes may differ from the plan.
Common mistakes
Issue: Redefining 1R after the fact.
Check the input, version, session, data, or setting that controls this behavior.
Issue: Treating +2R as a fixed target.
Check the input, version, session, data, or setting that controls this behavior.
Lesson summary
- 01
Define 1R in advance.
- 02
R standardizes review.
- 03
It is not a future target.
PRACTICE EXERCISE
Convert three fictional outcomes into R and label them hypothetical.
Use static, historical, or browser-local sample data only.
OFFICIAL REFERENCES
Checked against public documentation
This lesson paraphrases official material. Check the installed version for current interface details.
Education note
Software and market education only. No direction signals, live order instructions, or performance claims.
Trademark and independence
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