Page 46 - 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 11.7 Risk of ruin (ROR) probabilities with 33.33% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 33.33% 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% 68.0%
30%
Win Ratio 100.0% 86.2% 47.4%
35%
Win Ratio 100.0% 55.9% 33.2%
40%
Win Ratio 100.0% 36.4% 23.0%
45%
Win Ratio 99.0% 23.6% 16.1%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
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