Kardec Trader argues that absolute profit numbers mean nothing in trading. The only metric that matters is R multiple: your profit divided by your risk per trade. A $60k profit on $30k risk is R=2, while $5k profit on $1k risk is R=5, and that second trader actually performed better.
What I want every single person watching to realize is that this number does not matter. This number is irrelevant. The only number that matters in terms of performance is this R multiple. So if I have a day or a month where I make $60,000, but I've essentially risked, let's say, 30,000 to make that 60, my R multiple is a 2, meaning I made twice my risk amount. If someone has a profitable trade of 5,000 and they risked 1,000, there are multiple IS5. The reason that's the only number that matters is because we have a different approach to the market. Forget what our approach is from traders and so on, but from a risk perspective, we are all risking different percentages. We all have different account sizes. But what we can look at to analyze performance is our multiple.
