If you ask me how much pips I made last month, I will tell you I don’t know. But I will know my R-multiple of a couple months is a 6.1R profit. This R number often results in confused looks. What does R stand for? What the meaning? In order to figure this out, we need to take a step back and look at our performance and its relationship with risk in our trading activity.

Read more: Management Risk, R and R-multiples explained