RISK & PLANNING TOOL
Measure the risk, reward, and R multiple for a planned entry, stop, and target.
Update any value to recalculate.
Calculated from the values above.
The target-return figure is based on the selected target relative to entry and does not include fees or slippage.
Use it to compare a planned entry, stop, and target before placing a trade.
Enter an entry, invalidation level, target, and position size. Confirm the setup has a positive risk distance before using the R multiple, then consider whether the target is plausible within the trade's expected move.
Risk is entry minus stop; reward is target minus entry; R multiple is reward ÷ risk.
The R multiple assumes the entered stop and target are filled. It is a way to compare planned distances, not a probability or a prediction that the target will be reached.
An entry at $100, stop at $95, and target at $115 risks $5 for $15 reward, or 3R.
An R multiple compares distances, not likelihood. A 3R target can still be less useful than a smaller target if the plan has little chance of reaching it before the trade thesis changes.
Do not use a stop that is arbitrary or impossible to execute in the instrument’s normal volatility. A theoretical R multiple is only as useful as the entry and exit plan behind it.
A target and stop are planning inputs, not execution guarantees. Fees and slippage are excluded.