Risk of Ruin Calculator
Calculate the probability of losing a significant portion of your account
Quick Presets:
20%80%
0.25%10%
10%100%
Losing this % of your account = ruin
Risk of Ruin
Low Risk0.00%
0%5%20%100%
Consecutive Losses to Ruin
50
At 1% risk, 50 straight losses = 50% drawdown
Expected Value
+$50.00
Per trade
Profit Factor
2.00
Win$ / Loss$
Reward:Risk
2.00:1
Avg Win / Avg Loss
Kelly Criterion
25.0%
Optimal bet size
Solid Risk Management
Your strategy has a low probability of significant account loss. Your 1% risk per trade is sustainable.
How to Reduce Risk of Ruin
- Reduce risk per trade - Drop from 2% to 1% can dramatically lower RoR
- Improve win rate - Better entries and trade selection
- Increase R:R ratio - Let winners run, cut losers quickly
- Use Kelly fraction - Risk a fraction of the Kelly Criterion (1/4 to 1/2)
Professional Standards
- Hedge Funds: Target less than 1% risk of ruin
- Prop Traders: Usually keep RoR under 5%
- Retail Traders: Should aim for under 10%
- Gamblers: Often have 50%+ RoR