← Glossary

Realized R

Realized R takes the actual exit price, not the plan's target, and measures the distance from entry against R — a trade that hits its stop lands near −1R, one that closes exactly at a 2R target lands near +2R, and one closed early for other reasons lands wherever its exit price implies. It's what every expectancy and win-rate calculation is built from.

RealizedR = (ExitPrice − Entry) / R

This explains what realized r measures. It isn't investment advice — see the disclaimer.