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Glossário de trading

Risk of Ruin

Risk Management

O que significa

The probability that a string of losses wipes out your account completely. Higher risk per trade means a much higher chance of going to zero.

Exemplo

Risking 50% per trade, six losses in a row (a 1.6% chance) leaves you with 1.6% of your account. Risking 1% per trade, even 20 losses in a row still leaves you with 82%.

Erro comum de iniciantes

Beginners think a high win rate protects them. With 20% risk per trade, a perfectly normal six-loss streak destroys the account, no matter how good the strategy is.

Termos relacionados

  • Drawdown — The drop in your account value from its highest point to a later low. It measures how much…
  • Position Sizing — Deciding how many shares or contracts to trade based on how much you are willing to lose, …
  • Max Drawdown — The largest peak-to-trough drop your account or strategy has ever experienced. It is the w…

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