Risk Simulation

Scenario & Stress Testing

Pragmatic stress testing on your current holdings: apply historical shock windows, view worst-day and cumulative drawdowns, compare against VaR/ES, and surface limit breaches — with exports suitable for governance review.

Back to MySimulation What / If Scenarios Request Help
Historical stressShock windows applied to today’s positions
Worst-1D / CumulativeTwo practical views used in reviews
VaR/ES contextCompare stress vs risk bands
Limits & breachesHighlight exceeded guardrails
Modules

Core stress views

These map directly to what Hedgtrade already produces in the risk workflow (stress file, multiples vs VaR, breach list). Keep it simple: see the drawdown, see it vs VaR, see if anything breaks limits.

Historical Stress (Amplified)

Apply historical shock windows to the portfolio to estimate drawdown under past-like conditions. Use amplifiers to sanity-check severity (e.g., 1× baseline vs higher stress).

Practical outputs: scenario rows per date/window; portfolio PnL impact.
Open Stress View →

Stress vs VaR

Compare stress results against VaR bands to contextualize whether a shock is “within expectations” or meaningfully outside the normal risk envelope.

Practical outputs: multiples / ratios; quick “is this bigger than VaR?” view.
Open Stress vs VaR →

Limits & Breaches

Surface any limits breached by the stress runs (portfolio-level and key concentration / exposure checks), so review meetings focus on decisions, not data wrangling.

Practical outputs: breach list; what exceeded; by how much.
Open Breaches →
Outputs

What Hedgtrade produces

These are the concrete files / views that show up in the current risk workflow. (Names shown as examples of the existing artifacts you’ve been using.)

Output Used for Where it shows up
Historical stress scenarios
STRESS_HISTORICAL_AMPLIFIED.txt		 Scenario rows with portfolio impact, including amplified runs Stress view (Cumulative / Worst-1D)
Stress vs VaR
Stress_vs_VaR.txt		 Multiples/ratios to contextualize severity vs risk bands Stress vs VaR view / table
Limit breaches
Limit_Breaches.txt		 Flags anything exceeding stated limits under stress Breaches view / review checklist
Run Stress Now Export / Pack Governance Notes
DISCLAIMER
Hedgtrade provides research, analytics, and decision-support tools for informational purposes only. It does not execute trades or provide personalized investment advice. Stress testing is scenario-based and depends on assumptions (including amplification) and historical patterns; outputs may differ materially from real outcomes.