Drawdown Recovery vs Risk of Ruin

Quick comparison to help you distinguish these two crypto terms.

Drawdown Recovery
intermediate
risk

The percentage gain an account must generate to restore its balance to the previous peak value after a drawdown, which increases non-linearly as the size of the initial loss grows larger.

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Risk of Ruin
advanced
risk

The statistical probability that a trader's account will decline to a level so low it becomes non-viable for continued trading, calculated from win rate, reward-to-risk ratio, and risk per trade percentage.

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