Guide

There's a real probability that you could deplete a trading account if your position sizing, edge and stop‑loss approach are mismanaged; this guide shows how to compute the risk of ruin, apply simple rules and examples so you can limit downside and reduce the chance of catastrophic loss. You learn clear formulas, scenario outcomes, and actionable steps to protect your capital and keep your strategy viable.Understanding Risk of Ruin in Forex Trading Definition of Risk of Ruin You measure risk of ruin as the probability that your trading capital will fall to a predefined failure point - often either actual…