Risk of ruin is the probability that your account reaches a defined loss level, such as 30 percent, 50 percent, or zero, before you can grow it back.

The calculator uses your win rate, risk per trade, and risk to reward ratio to model many trade sequences, then measures how often those sequences hit your chosen drawdown or ruin level.

You need your starting balance, risk per trade, win rate, risk to reward ratio, and the number of trades you plan to take. The more realistic these numbers are, the more useful the result.

At least 100 trades for a basic view, and 250 to 500 trades if you want to see how your strategy behaves over a longer period with multiple streaks.

Yes. If you risk too much per trade or take on very high effective leverage, even a strategy with positive expectancy can have a high chance of large drawdowns or ruin.

Higher risk per trade increases both the depth and frequency of drawdowns and pushes risk of ruin higher. Lowering risk per trade is one of the strongest ways to improve survivability.

Many traders aim to keep maximum drawdown below 20 to 30 percent. Beyond that level, both emotional stress and recovery time increase sharply. The correct level depends on your time frame and risk tolerance.

By showing you the drawdowns and ruin probabilities that correspond to different risk per trade values, it helps you choose a position size that your account and mindset can handle.

Losing streaks compress several losses into a short period. If your risk per trade is high, a normal streak for your win rate can push your account into a deep drawdown or trigger a margin call.

VaR focuses on the maximum expected loss over a time period at a given confidence level. This drawdown calculator goes further by modelling the path of your equity, including streaks and recovery time.

Real trading can differ because your actual win rate, R values, or discipline may not match the inputs, and because of factors like slippage, missed trades, and changes in market conditions.

Yes. You can plug in stats for each strategy and compare their maximum drawdown, ruin probability, and losing streak profile to see which one gives a better balance of risk and return.

It helps to update it whenever your trading stats change, for example after every 50 to 100 new trades, or when you change your risk per trade or your strategy rules.