You can have a 40% win rate and outperform a 70% win rate trader by 5x. The reason is R.
What is R?
R is your initial risk on a trade. If you enter EURUSD at 1.0850 with a stop at 1.0830, your risk is 20 pips. That's 1R. If you take profit at 1.0890, you made 40 pips — a 2R win.
Expectancy in one formula
Expectancy = (Win% × Avg R won) − (Loss% × Avg R lost)A trader with 40% wins averaging +3R and 60% losses averaging -1R has an expectancy of +0.6R per trade. A trader with 70% wins averaging +1R and 30% losses averaging -1R has +0.4R. The "loser" wins.
Why dollars lie
Position size changes between trades. P&L curves reflect sizing decisions, not skill. R normalizes that — every trade is judged on the decision quality, not the bankroll allocated.
Logging R correctly
The moment you enter, lock your stop. That stop defines 1R. Don't move it. If price stops you, that's -1R. If you exit early, log the actual R captured. Pro Journal Trader's AI extraction reads entry, stop, and target straight from your chart and computes R automatically.
Stop counting wins. Start counting R.