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R multiples, and why they need a stop

What R means in Alpha Ledger, how it is calculated, and why a trade without a stop has none.

An R multiple expresses a result in units of the risk you took, rather than in dollars.

The calculation


initial risk = |entry − initial stop| × size × value per point
R multiple   = net P&L ÷ initial risk

A trade that makes twice what it risked is +2R. One that hits its stop is −1R.

Why "initial" stop

The initial stop is fixed at entry and never recalculated. Moving the stop afterwards changes your P&L, but it does not change the risk the trade was measured against — otherwise a trader who widened a stop would look like they had taken less risk, which is exactly backwards.

Alpha Ledger records both: initialStopLoss for R, and stopLoss for the current level. A difference between them sets the "stop moved" flag, which the mistake detector reads.

Why it matters

R makes results comparable. A $500 win on a $250 risk and a $2,000 win on a $1,000 risk are the same trade, and only R says so. It is why average R and total R are the cleanest read on an edge, and why they survive a change in account size.

Trades without a stop

A trade with no stop has no initial risk and therefore no R. Alpha Ledger does not guess one. Those trades:

  • appear in your P&L, win rate and profit factor
  • are excluded from average R, total R and expectancy in R
  • are counted on the Execution tab as "trades without a stop"

If that count is not zero, fix it before you read anything else. Most prop firms fail accounts for it, and without a stop the rest of the analysis is measuring something you cannot control.