# How to Calculate Ruin Factor

The ruin factor is a parameter which measures the risk of losing all available funds after a series of stock operations. This is the formula to calculate the ruin factor:

Ruin factor = ( |
1 - Winning percentage | ) | Risked capital (%) |

Winning percentage |

For example, if the system wins 45% of the operations, and 10% of the capital is risked, the formula to calculate the ruin factor is:

Ruin factor = ( |
1 - 0,45 | ) | 10 |

0,45 |

**Ruin factor**= 7,43

Related Posts