Page 47 - 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 11.8 Risk of ruin (ROR) probabilities with 50% of capital at risk
Risk Of Ruin Payoff Payoff Payoff
Probabilities Ratio Ratio Ratio
With 50% 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% 77.3%
30%
Win Ratio 100.0% .90.6% 60.6%
35%
Win Ratio 100.0% 67.8% 47.9%
40%
Win Ratio 100.0% 50.6% 37.8%
45%
Win Ratio 99.0% 38.2% 29.5%
50%
A 0.0% probability means the total loss of equity is unlikely, but not impossible.
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