Understanding 1R, 2R, and 4R ORB Presets

The labels 1R, 2R, and 4R describe a target as a multiple of the trade's initial stop distance. They do not describe contracts, dollars, leverage, or a guaranteed reward.

If an entry is 10 points from its protective stop, the simplified target distances are:

• 1R: 10 points from entry;
• 2R: 20 points from entry; and
• 4R: 40 points from entry.

Actual execution can differ because of fills, slippage, commissions, gaps, and risk controls.

The target changes the distribution

A closer target generally needs less favorable movement to be reached. A farther target asks the market to travel more before the trade resolves favorably. That changes win rate, average winning trade, time in market, and sensitivity to reversals.

It does not follow that the largest target is best. A 4R preset can have larger individual wins while reaching its target less often. A 1R preset can close winners sooner while giving up the occasional larger continuation. Neither label tells you which path will be easier to follow through a losing period.

Dollar risk is a separate account decision

“R” describes the shape of a trade. Account risk determines its size. ORB Runner uses the customer's configured risk to calculate quantity within the system's limits; switching from a 1R target to a 4R target does not itself mean risking four times as much money.

Compare complete evidence, not one metric

When comparing presets, inspect trade count, drawdown, costs, average result, losing streaks, and the full equity path alongside net modeled P&L. Historical results are hypothetical and cannot tell you which preset will perform best next.

The practical choice is the fixed rule set whose behavior and risk you understand well enough to use consistently. Changing targets in response to a recent winner or loser creates a different decision process from the one shown in the published evidence.