Risk of Ruin Calculator
The risk of ruin calculator estimates the probability of completely losing your trading account based on your win rate, reward/risk ratio, and risk per trade.
How to use
- Enter your win rate percentage
- Enter average reward/risk ratio
- Set risk percentage per trade
- Get ruin probability and recommendations
Why calculate risk of ruin?
Even a profitable strategy can lead to account loss if risk per trade is too high. The calculator shows the mathematical probability of this event.
Recommended risk of ruin is less than 1%. If yours is higher, reduce risk per trade.