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Risk Tool

Risk of Ruin Calculator

Calculate the probability of losing a significant portion of your account based on your trading statistics.

Trading Statistics

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%
%
Risk of Ruin 12.5% Moderate Risk
Expected Value (per trade) +0.325R
Reward/Risk Ratio 1.5:1
Edge Positive

Understanding Risk of Ruin

  1. <1% risk of ruin is ideal for professional traders.
  2. Reduce position size to lower your risk of ruin.
  3. Higher win rate + larger wins = lower risk of ruin.
  4. Even with an edge, variance can cause significant drawdowns.