Counting a day's losses in R units rather than currency
Posted: Sat Oct 31, 2026 8:31 pm
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:
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?
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.
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?