Trading Tools Comparison
Both TradingHabits and Liberated Stock Trader publish a free risk of ruin calculator, and neither runs a randomized simulation. The real difference is how many inputs each formula takes, and whether it assumes an even risk-to-reward payoff or lets you set your own.
TradingHabits and Liberated Stock Trader (LST) both publish a free risk of ruin calculator, and both use a closed-form formula rather than a Monte Carlo simulation of randomized trade sequences. Where they differ is scope. TradingHabits' version takes two inputs, win rate and risk per trade, assumes a fixed 1:1 risk-to-reward ratio, and returns a single risk-of-ruin percentage instantly. LST's version takes six inputs, win rate, reward-risk ratio, risk per trade, a custom ruin threshold, account size, and a trade sample window, and returns a fuller result set built around expectancy: the risk of ruin percentage itself, plus system expectancy in R, break-even win rate, win rate edge, and the ruin threshold converted into a dollar figure.
The comparison below is based on Liberated Stock Trader's own published risk of ruin calculator page as of mid-2026.
| TradingHabits | Liberated Stock Trader | |
|---|---|---|
| Price | Free, all calculators | Free calculator page; site also sells a paid "LST Pro" training membership |
| Signup required | No account, no email, no login | No account required to use the calculator itself |
| Methodology | Closed-form "gambler's ruin" formula, assumes a fixed 1:1 risk-to-reward ratio | Closed-form approximation built from expectancy, break-even win rate, and win rate edge, allows any reward-risk ratio |
| Inputs | Win rate and risk per trade only | Win rate, reward-risk ratio, risk per trade, ruin threshold, account size, trade sample window |
| Output format | A single risk-of-ruin percentage | Risk of ruin percentage, system expectancy in R, break-even win rate, win rate edge, and the ruin threshold in dollars |
| Best for | A fast, directional read on how win rate and risk per trade interact, without entering a reward-risk ratio or a ruin threshold first | A fuller read that accounts for an uneven reward-risk ratio and translates the result into a dollar drawdown against a real account size |
A trader could get a fast directional read from TradingHabits' two-input formula, then run the same strategy's real reward-risk ratio and account size through LST's fuller model to see the ruin threshold expressed in actual dollars rather than a percentage alone. Neither replaces sound position sizing, both are estimates built on the numbers entered, not a guarantee of what a live account will actually do.
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