Risk of Ruin Calculator
What's the chance you blow your account?
Uses & Examples
When to Use This Tool
- Checking the probability that you'll blow your account with your current risk level
- Comparing risk of ruin at 1% risk vs 2% vs 5% per trade
- Understanding why risking 5%+ per trade is dangerous even with a 60% win rate
- Setting your risk per trade so that ruin probability stays below 1%
Worked Example
Worked Example
Win rate: 55% | Risk per trade: 2% | Ruin threshold: 90% loss
With a 55% edge and 2% risk, the math heavily favors survival.
Risk of ruin: ~0.12%
At 5% risk per trade with same win rate: ruin jumps to ~8.5%
Lesson: keep risk per trade small — your edge compounds over time.