This is a nifty tool that tells you how likely you are to reach a defined equity growth or decline based on historical trade statistics.  Optimal F is defined as the “optimal” amount you should risk on any trade to maximize your profit potential.  The Probability of Ruin is defined as the probability of the account reaching a defined point of ruin before reaching a defined point of success.

Below is a screenshot of the output from this tool.  It shows that based on the historical trade win/loss data entered, the optimal amount to risk per trade is 39%.  The probability of ruin for the account  (in this case defined as a 50% loss of capital) is 24%.

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