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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
Table 11.3 Risk of ruin (ROR) probabilities with 2% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 2% 1 To 1 2 To 1 3 To 1
Of Capital
At Risk
Win Ratio 100.0% 100.0% 19.7%
25%
Win Ratio 100.0% 87.4% 0.0%
30%
Win Ratio 100.0% 16.0% 0.0%
35%
Win Ratio 100.0% 0.0% 0.0%
40%
Win Ratio 93.6% 0.0% 0.0%
45%
Win Ratio 5.4% 0.0% 0.0%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
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