Page 43 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com
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TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
Table 11.4 Risk of ruin (ROR) probabilities with 10% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 10% 1 To 1 2 To 1 3 To 1
Of Capital
At Risk
Win Ratio 100.0% 100.0% 99.0%
25%
Win Ratio 100.0% 100.0% 27.7%
30%
Win Ratio 100.0% 60.8% 8.2%
35%
Win Ratio 100.0% 14.3% 2.5%
40%
Win Ratio 100.0% 3.3% 0.8%
45%
Win Ratio 99.0% 0.8% 0.2%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
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