Drawdown Survival + Risk of Ruin Calculator
Estimate account survival and the probability of breaching your drawdown limits using a simulation. Includes Prop Firm Mode with daily loss resets and optional trailing overall drawdown.
Educational only. Not financial advice. Simulations are estimates — always validate assumptions and broker/prop rules.
Tools • Risk Management
Drawdown Survival + Risk of Ruin Calculator
Built for serious traders. Estimate account survival, risk of ruin, and prop firm rule violations. Supports daily loss resets and trailing drawdown rules.
Inputs
Display only (no FX conversion).
Used to show money amounts.
Measured from each day start equity.
Trailing from peak equity (high-water mark).
ON = harder after profits (peak moves up). OFF = fixed overall limit from the start.
What this means
This tool is designed for traders who want to survive long enough to let their edge work. Most accounts fail from poor position sizing and drawdown rule violations — not from lack of indicators.
Prop Firm Mode simulates a daily loss rule that resets each day plus an overall max loss rule. If trailing drawdown is ON, the overall limit follows your peak equity (high-water mark).
FAQ
What is trailing drawdown?
Trailing drawdown means your overall max loss is calculated from your peak balance (high-water mark). After you make profits, the allowed drawdown level can move up, making the rule tighter.
How does daily reset work?
Each simulated day starts with that day’s equity. If you breach the daily loss limit within the day, you fail the rules — then the daily limit would reset next day (but the failure already happened).
Educational only. Not financial advice. This tool provides estimates under assumptions and does not guarantee outcomes.
QUICK ANSWERS · AEO READY
Drawdown survival & risk of ruin (quick answers)
Short, structured answers designed for fast lookup — by traders and AI search.
What is risk of ruin in trading?
Risk of ruin is the estimated probability of hitting a failure threshold (like max drawdown or prop firm loss limits) before your trading edge plays out. It depends mainly on risk per trade, win rate, and reward-to-risk.
How many losses can I survive at 1% risk per trade?
Under fixed-fraction risk, equity after consecutive losses is E*(1−r)^n. This tool estimates how many consecutive losses could trigger your drawdown rule. Real results vary with execution, spreads and slippage (educational only).
What is trailing drawdown (prop firms)?
Trailing drawdown means the overall max loss is calculated from your peak equity (high-water mark). After profits, the allowed drawdown level can move up, making the rule tighter.
How does daily loss reset work?
Daily loss resets each day and is measured from that day’s starting equity. If you breach the daily loss limit during the day, the rules are considered failed (even if the limit would reset tomorrow).
Is risk of ruin a guarantee or prediction?
No. This calculator provides estimates based on assumptions (win rate, R:R, risk per trade, and rule thresholds). Real trading conditions can differ significantly.
Educational only. Not financial advice. Simulations are estimates — always validate assumptions and prop/broker rules.