Risk of Ruin Calculator (Simulation) | AlgoBars

Free risk of ruin calculator

The short answer

Risk of ruin is the chance that a run of losses cuts your account down to a level you cannot accept. This calculator runs 5,000 simulated sequences of trades with your win rate, reward-to-risk and risk per trade, and reports how often the account fell to your ruin level. Lower risk per trade reduces it sharply.

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Frequently asked questions

What is risk of ruin?

The probability that losses reduce your account to a level you consider ruin.

How do I lower it?

Risk less per trade. It has the largest effect.

More answers

Calculators are for education. Check figures with your broker, whose contract sizes and conversion rates may differ. Trading involves risk of loss.

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