Counting a day's losses in R units rather than currency

[FXS London Scalper]

Most daily loss limits are set in money or percent. Setting them in R, the size of one normal loss, can be easier to follow.

An example rule: stop for the day after −2R, or after three losing trades, whichever comes first.

Why R helps:

• It does not change as the balance rises or falls.
• It links directly to the trades you take. "Two more losses and I'm done" is clearer than "€140 more".
• It works for several instruments with different stops.

Choosing the number: look at your journal for the worst days. If days that reached −2R rarely recovered, and often went on to −4R or worse, −2R is a sensible cut-off.

Things to decide in advance: does a breakeven trade count? Does a partial loss count as a full R? Write the answers down.

The hardest part is following it. A small physical action helps: close the platform and write "stopped at −2R" in the journal.

What daily limit do you use, and in what units?