R-Multiple Journaling
Do you record every trade primarily in R-multiples rather than dollars? Has that habit made it easier to compare performance across different account sizes and market conditions?
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Yes, I’d prioritize recording every trade in R-multiples rather than dollars because R measures the result relative to the initial risk taken.
For example, if I risk $100 on a trade:
A profit of $200 = +2R
A loss of $100 = −1R
A profit of $50 = +0.5R
The biggest advantages are:
Comparability: Evaluate performance across different account sizes, including prop firm and personal accounts.
Consistency: Compare results across currency pairs and market conditions.
Clearer statistics: Track average R per trade, win rate, and expectancy without being distracted by dollar amounts.
Better discipline: Focus on the quality of execution rather than the money gained or lost.
I don't have personal trading results to claim this habit has improved my performance, but it's a useful way to evaluate a strategy objectively.
