The honest counterweight
Drawdown & Risk of Ruin
Drawdown recovery
Losses and the gains needed to undo them are not symmetric — the deeper the hole, the steeper the climb out.
Gain required to recover
+0.0%
| Drawdown | Gain needed to recover |
|---|
Risk of ruin
Rough odds of blowing up a fixed % of account per trade, assuming even-money (1R) wins and losses.
Risk of ruin
0.0%
Edge 0pt
100 losing trades to zero
This is a textbook gambler's-ruin approximation, not a simulation of your actual win/loss sizes — pair it with Expectancy for the fuller picture.