Risk of Ruin Calculator
Determine the probability of reaching a certain level of drawdown on your account based on your win rate, average Risk to Reward ratio and risk per trade involved, across a certain number of trades.
What is a Risk of Ruin Calculator?
The RoR Calculator measures the probability of losing a certain percentage of the investment capital based on your winning rate, R/R ratio and average risk per trade.
If the risk of ruin is too high, you may decide to adjust your trading strategy by either reducing the risk per trade, finding a way to increase the winning rate percentage, or using a different risk to reward ratio. Alternatively, you may decide that the potential reward of your trading strategy justifies the level of risk and confirms you’re having a winning strategy for the long run.