Page 40 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com

TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM

Table 11.1 Risk of ruin (ROR) probabilities with 1% of capital at risk

Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 1% 1 To 1 2 To 1 3 To 1
Of Capital
At Risk

Win Ratio 100.0% 100.0% 3.1%
25%

Win Ratio 100.0% 46.9% 0.0%
30%

Win Ratio 100.0% 0.1% 0.0%
35%

Win Ratio 99.8% 0.0% 0.0%
40%

Win Ratio 52.4% 0.0% 0.0%
45%

Win Ratio 0.0% 0.0% 0.0%
50%

A 0.0% probability means the total loss of equity is unlikely, but not impossible.

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