Risk of Ruin Calculator
Free risk of ruin calculator. Estimate the probability of large drawdowns or account failure given your win rate, payoff ratio, and risk per trade.
Risk of Ruin
Approximate probabilityQuantify blow-up risk
A risk of ruin calculator estimates the probability of large drawdowns (or account failure) given your win rate, payoff, and risk per trade. It’s a practical reality check for position sizing.
- Lower risk per trade generally lowers ruin probability.
- Edge is a combination of win rate and payoff, not one number.
- Use it to stress-test changes to sizing rules.
FAQs
It’s for traders who want consistent risk management. Use it to plan position size, stops, and targets before you enter so the math is clear.
Yes. The concepts apply to MT5/Forex-style pricing. Exact results depend on your broker’s contract specs, symbol settings, and account currency.
Log the plan (risk %, stop distance, target, and rationale) in your trading journal so you can review outcomes and refine your rules over time.
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