R-Multiple Definition
Van Tharp created the concept of R-Multiples which I find useful in evaluating the performance of trading strategies. Very briefly, an R-Multiple of a trade is the gain divided by the amount risked. Losses are negative number, profits are positive numbers.
Updated 11/12/08.
October 17th, 2008 Filed under GlossaryTags: loss, R-Multiple, risk, trading, Van Tharp







