Risk of Ruin
It won't be possible for anyone to throw light on the topic because it's not a topic - it's a graphic without any context!
Although it's fairly obvious what the table is trying to say, if you post a link to the site where you got it, I'm sure more people will be willing to respond.
The table's basically telling you what the probability is of losing all your money if you stake 10% of your bank, according to your risk/reward ratio.
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ShaunWhite
- Posts: 9731
- Joined: Sat Sep 03, 2016 3:42 am
It's just a table that explains what value is , eg at evens you need to win >50%. It tells you nothing about 'ruin' because you can still go bust backing even money chances at 2.2 if the first 20 lose.
More short one-liners friend? It hardly stimulates an engaging discussion, FYI, risk of ruining a potentially good thread goes well above 90%.
A lot of numbers thrown there to try to quantify it all, but it's not so simple in practice, is it. Not really interested in a discussion but here's a few things to consider and think about...
In reality you will stake according to your confidence levels, market size, quality of opportunity etc... Meaning for example my staking goes from up to 20k on football match odds from the lay side, to as low as 2 stakes on something like racing inplay from the back side at very high price ranges. Now, you would assume that because these are 2 vastly different staking sizes and plans that the end results between them would also be vastly different, but in reality they're not too dissimilar.
In other words you stake what makes sense to stake in any given market, as long you make a genuine effort to manage your positions sensibly and execute your trades as well as you can from the technical side, your ratios should automatically end up somewhere on the healthier side of the spectrum, depending on your personal risk tolerance levels. Please note however, that the amount you stake is not automatically the amount you risk!!! This cannot be understated.
That being said, trading banks are "easy" to replenish, while trading confidence is not, too many focus on protecting their banks but confidence is something worth protecting as well, once you lose that it can become an uphill battle to get it back and a downward spiral is more likely. You are always just one tilting situation or one bad outage away from blowing your bank, unless you put in extra effort to eliminate such extreme risks.
In any case, just because you've blown your bank for whatever internal or external reason, does not automatically mean you are "ruined". If your edge is still in tact, then you can slowly rebuild your bank even if you can't immediately afford to replace it.
Forget the stats...just use small banks until you achieve positive expectancy...
I just use the minimum amount in my account to cover my expected liability, if my bots get greedy they might use most if it!!
In theory they could all fail to hedge, they all lose and i lose a bunch...but the odds of that are minuscule..but that's the risk albeit a tiny one.
I just use the minimum amount in my account to cover my expected liability, if my bots get greedy they might use most if it!!
In theory they could all fail to hedge, they all lose and i lose a bunch...but the odds of that are minuscule..but that's the risk albeit a tiny one.
After thinking 
all the day i trick myself, according to this table if my account balance is 10000 and i am using 10% of capital risk, my win rate must be higher otherwise my account will be blown.
So what I did is i increase my account balance upto 100000 and start using 1% of capital risk, with my risk to reward ratio which is perfect according to that table
.
What's your opinion guys please comment
all the day i trick myself, according to this table if my account balance is 10000 and i am using 10% of capital risk, my win rate must be higher otherwise my account will be blown.So what I did is i increase my account balance upto 100000 and start using 1% of capital risk, with my risk to reward ratio which is perfect according to that table
.What's your opinion guys please comment
Are you actually winning?azfyazfy wrote: ↑Fri Oct 07, 2022 10:30 pmAfter thinking
So what I did is i increase my account balance upto 100000 and start using 1% of capital risk, with my risk to reward ratio which is perfect according to that table
What's your opinion guys please comment
I am saying very seriously i have a psychological problems OCD,fear, greed,anxiety etc.Derek27 wrote: ↑Fri Oct 07, 2022 10:55 pmAre you actually winning?azfyazfy wrote: ↑Fri Oct 07, 2022 10:30 pmAfter thinking
So what I did is i increase my account balance upto 100000 and start using 1% of capital risk, with my risk to reward ratio which is perfect according to that table
What's your opinion guys please comment
After all this problem.
I have setup my own risk to reward strategy, i believe if i use in real market thinking in long term it can work, even though i am confirming on this forum, searching new article on google, with my friends
You haven't answered the question, are you making a profit and asking for advice on how to optimize your profits, or are you trying to optimize your stakes to turn a loss into a profit?azfyazfy wrote: ↑Fri Oct 07, 2022 11:40 pmI am saying very seriously i have a psychological problems OCD,fear, greed,anxiety etc.Derek27 wrote: ↑Fri Oct 07, 2022 10:55 pmAre you actually winning?azfyazfy wrote: ↑Fri Oct 07, 2022 10:30 pmAfter thinking
So what I did is i increase my account balance upto 100000 and start using 1% of capital risk, with my risk to reward ratio which is perfect according to that table
What's your opinion guys please comment
After all this problem.
I have setup my own risk to reward strategy, i believe if i use in real market thinking in long term it can work, even though i am confirming on this forum, searching new article on google, with my friends