Risk Management
Risk of Ruin Calculator
Enter your win rate, reward:risk ratio, and the percent of capital you risk per trade to estimate your risk of ruin: the modeled probability of losing your account down to a level you can't come back from, under a fixed-fractional betting model.
Average winning trade size divided by average losing trade size, in R.
Expectancy per trade (R)···
Risk units to ruin···
Estimated risk of ruin···
Read···
Educational tool only, not financial advice. Uses a simplified fixed-fractional gambler's-ruin approximation with independent trades and a constant edge. Live trading has streaks, correlation, and an edge that changes.
Built by Jason Parker, founder of Trading Ranges.
Built by Jason Parker, founder of Trading Ranges.