Expectancy vs Risk of Ruin

Quick comparison to help you distinguish these two crypto terms.

Expectancy
advanced
strategy

A statistical measure of the average dollar amount a trader expects to gain or lose per unit of risk on each trade, calculated from win rate and average reward-to-risk ratio combined.

Read full definition
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.

Read full definition
Browse full glossaryGet platform access