Risk of Ruin Calculator from freeamfva's blog
Risk of Ruin Calculator
The cTrader Risk of Ruin (ROR) Calculator is an advanced tool to evaluate your probability of loss when trading manually or by using an automated trading system, it will calculate the probability to hit a specific drawdown or ruin.To get more news about risk of ruin calculator, you can visit wikifx.com official website.
Risk of Ruin vs Drawdown Risk?
When you calculate the risk-of-ruin (ROR) you define the probability of your loss from your original account balance, so for example, if you started trading with £1000, if your risk of ruin was 20% then you have a chance of losing 20$ of your balance or £200, but as your equity gets larger due to winning trades your ROR decreases.
When you calculate your risk-of-drawdown (ROD) the drawdown will be the same through the lifetime of your account because the ROD will only get bigger if the losses in your account are lower than the previous highest drop. So, the difference between the account equity and balance is lower than at any other time, the is the highest drawdown amount.
How to Read The Results
A win rate of 50% and an average profit loss of 1 against a risk per trade of 2% when 100 trades have been placed with a max drawdown of 30% would show a probability risk for the peak-to-valley drawdown of 13.8% and total risk-of-ruin to blow your account to be 8.1%
Position Size Calculator
We also have a position size calculator that will automatically tell you your position size before you place a trade based on how much of your account you wish to risk and you stop loss.
Financial Analysis Widgets
We also have some very good free technical analysis widgets from TradingVew, they all show a visual view of the market conditions and trend strengths as well as fundamental analysis.
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By | freeamfva |
Added | Apr 2 '23 |
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