DislikedHey Pat,
R in this instance is RISK, not REWARD.
I RISKED double the size of the gap.
The RISK to REWARD is low but the chances of winning a trade is HIGH, which should eventually put you into profit over time. Hope this helps.
TIgnored
The expectancy is almost identical on all of them.
It just depends on the traders personal preference. Some people prefer to win the majority of the time and are OK with taking a bigger loss from time to time.
Others prefer to win about half the time but know that half of that time they are going to make double what they risked.
The strike rates are now:
0.5 R (stop double the gap) - 85.45%
1 R (stop same size as the gap) - 63.63%
2 R (stop half the gap) - 47.27%