Free Tool
Risk of Ruin Calculator
Calculate the probability of blowing up your account based on your trading stats and risk per trade.
Your Trading Stats
Enter your trading statistics to calculate risk
Enter your stats and click Calculate to see your results
Understanding Risk of Ruin
Risk of Ruin (RoR) is the probability that you will lose enough money to no longer be able to trade. It's one of the most important metrics for any serious trader because even a profitable system can blow up if risk is too high.
Key Factors
- Win Rate: Higher win rates reduce risk of ruin, but it's not the only factor.
- Risk/Reward: A lower win rate can still have low risk of ruin if your winners are significantly larger than losers.
- Risk per Trade:The most controllable factor. Lowering risk dramatically reduces ruin probability.
- Drawdown Threshold:The point at which you consider yourself "ruined" (typically 20-30% for most traders).
General Guidelines
- < 1% RoR: Excellent - your account is well protected
- 1-5% RoR: Acceptable for most traders
- 5-15% RoR: Consider reducing risk per trade
- > 15% RoR: High risk - strongly consider adjusting your approach