Calculate Risk of Ruin

Initial Capital

Account Currency

Trading Parameters

Win Rate (%)50%

Risk Per Trade (%)2%

$200 per trade

Risk/Reward Ratio1:1.5

Ruin Threshold (%)50%

Drawdown considered as 'ruin': $5,000

Number of Trades100

For simulation purposes only

Risk Assessment

< 0.01%

Risk of Ruin

Probability of hitting drawdown threshold

100.00%

Survival Rate

Probability of avoiding ruin

0/100

Trading System Score

Very Poor

Very PoorPoorFairGoodExcellent

Expected Value Per Trade

+0.00%

Average gain/loss per trade

Long-Term Growth Rate

+0.00% per trade

Estimated compound growth

Risk of Ruin by Win Rate and Risk Level

Win Rate	1% Risk	2% Risk	3% Risk	5% Risk

* Based on a 1:1.5 risk/reward ratio and 50% ruin threshold

What is Risk of Ruin?

Risk of Ruin (RoR) is the probability that your trading account will experience a drawdown large enough to either:

—Force you to stop trading (psychological ruin)
—Reach your pre-defined drawdown limit
—Completely deplete your trading capital

This calculator helps you understand how your win rate, position sizing, and risk/reward ratio affect your probability of significant losses.

Key Factors Affecting Risk of Ruin

Win Rate

Higher win rates dramatically reduce your risk of ruin

Risk Per Trade

Lower risk per trade provides more protection against consecutive losses

Risk/Reward Ratio

Higher R:R ratios require fewer winning trades to be profitable

Expected Value

Positive expectancy trading systems are essential for long-term survival

Safe Trading Parameters

For a risk of ruin below 5%, aim for these minimum parameters:

Risk Per Trade	Required Win Rate	With R:R Ratio
1%	40%+	1:1.5
2%	45%+	1:2
3%	50%+	1:2.5

Flow Execution helps you implement proper risk management and position sizing, dramatically reducing your risk of ruin.

Try Flow Execution