Page 45 - Trading #101 Course – PART II TWO: SUCCESSFUL TRADING PIE – www.traderscoach.com
P. 45
TRADING #101 COURSE – PART II TWO: SUCCESSFUL TRADING PIE – WWW.TRADERSCOACH.COM
Table 11.6 Risk of ruin (ROR) probabilities with 25% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 25% 1 To 1 2 To 1 3 To 1
Of Capital
At Risk
Win Ratio 100.0% 100.0% 99.1%
25%
Win Ratio 100.0% 100.0% 59.9%
30%
Win Ratio 100.0% 82.0% 36.6%
35%
Win Ratio 100.0% 45.8% 22.9%
40%
Win Ratio 100.0% 25.9% 14.2%
45%
Win Ratio 99.0% 14.7% 8.6%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
45 | P a g e
