Page 44 - 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 11.5 Risk of ruin (ROR) probabilities with 20% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 20% 1 To 1 2 To 1 3 To 1
Of Capital
At Risk
Win Ratio 100.0% 100.0% 98.9%
25%
Win Ratio 100.0% 100.0% 52.6%
30%
Win Ratio 100.0% 77.9% 28.7%
35%
Win Ratio 100.0% 37.6% 15.9%
40%
Win Ratio 100.0% 18.3% 8.7%
45%
Win Ratio 99.0% 9.0% 4.7%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
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