For actual implementation details, referring to a specific game's source code or a tutorial related to your chosen game engine or simulation framework would be most helpful.
Falling off the stage is an instant loss, regardless of how much health you have left. Always try to stay toward the center.
Unlike fighting games, power in Ragdoll Hit comes from distance. Click and hold your mouse on the character, drag far away from the target, and release. The further you drag, the harder the hit.