Stop loss and the R unit

A stop loss is the price where you exit if the trade goes against you. Every official XHT signal has a clear stop: never enter without it and never move it further away as price gets close.

The record measures results in R. R is the amount you risked. Risk $10 and make $25, and the result is +2.5R; if the stop is hit, it is −1R.

• R makes results comparable whatever your account size.
• A system that wins 45% of the time can be profitable if the average win is 2R and the average loss is 1R.
• Total R in the record × your risk amount ≈ your profit or loss.