Risk Management Practice Lab
Fifteen dedicated exercises for position sizing, drawdowns, execution, portfolio stress, leverage, and review.
Choose a lesson, predict the result, then change one input and calculate. Each exercise includes an interactive graphic and a link to the complete lesson.
Lists: use commas or spaces between observations, oldest to newest. Enter 100000 for one hundred thousand; do not put thousands separators inside a number. Maximum 200 observations. Inputs are not saved and clear on reload.
01. Translate an allowance into dollars
Compare an entered policy allowance with planned and stressed loss scenarios. The percentage is a teaching input, not a recommendation.
02. Calculate a whole-share scenario
Long shares only. Cash is reserved for share purchase; fixed round-trip charges are included separately in the planned-loss allowance.
03. Compare planned and actual exit loss
Compare one planned protective reference with one supplied full-fill exit. No real order is placed and no broker trigger is simulated.
04. Test assumed expectancy
The winning frequency is your assumption. The tool performs a two-outcome calculation; it does not estimate the likelihood or reliability of a strategy.
05. Calculate drawdown and recovery
Two-value, no-external-cash-flow comparison. Current drawdown differs from maximum drawdown over a complete historical path.
06. Compare fixed and fractional losses
Every modeled loss exactly matches the chosen fraction or fixed starting-dollar amount. This deterministic path is not a probability of ruin.
07. Check daily and weekly capacity
This convention does not replenish realized-loss usage from profits. Open commitments and proposal costs count against both period boundaries.
08. Aggregate open-position scenarios
Use consistent whole-position loss magnitudes and aligned lists. Every adverse stressed magnitude must be at least its paired planned value.
09. Measure portfolio concentration
Positive or zero long values only, with a positive total. Weight distribution does not reveal fund overlap, economic drivers, or suitability.
10. Stress aligned portfolio holdings
Pair each long value with its signed percentage shock. This is a chosen scenario, not an estimated correlation or forecast.
11. Model leveraged equity
Static financed-long endpoint with simple debt × annual rate × days / 365 interest. No broker margin-call or liquidation threshold is calculated.
12. Calculate weighted fill and shortfall
Buy-side completed-fill comparison. Keep prices paired with quantities. Unfilled shares have no fill price and no opportunity cost is modeled.
13. Compare planned and gap exits
Keep quantity fixed across planned and adverse exit cases. A selected gap scenario is not a forecast or a worst-case guarantee.
14. Reconcile a partial exit
Allocate shared charges once. The remaining branch is a hypothetical full exit; a partial profit does not remove its exposure.
15. Review a risk-journal sample
Use complete net outcomes and preserve each original planned-risk denominator. Compliance flags refer to prewritten rules, not whether a trade won.
Educational risk arithmetic only. No live market data, broker connection, real orders, personal advice, or account assessment. Planned boundaries and scenario outputs do not guarantee future losses or returns. Every exercise states its assumptions.