Research method
Risk of ruin
Risk of ruin is a canonical archive-taxonomy method; this registry entry defines its inputs, output and use boundary.
- Output
- Research filter
- Input
- Account equity, volatility, stop distance and exposure
- Horizon
- Before entry and throughout the position
- Best use
- Keep a loss or exposure decision bounded before a trade is placed.
- Input: Account equity, volatility, stop distance and exposure.
- Output: filter.
- Use boundary: Keep a loss or exposure decision bounded before a trade is placed.
The graph4
How the method is built, and where it has been read
Depends on
Often reviewed together
Optimal f sizing4 readings
Often reviewed together
Monte Carlo simulation5 readings
Often reviewed together
Expected value5 readings
Often reviewed together
Drawdown limit9 readings
This registry entry describes a research method. It is not investment advice and does not make a performance claim.