🩺 Portfolio Stress Test
What if the market drops? Pick a scenario · see your damage · --
📉 Pick a stress scenario

Mild correction

SPY -5%
A normal pullback. Happens 2-3× per year. VIX ~25.

Bear day

SPY -10%
Single-day. Like Aug 2024, COVID-March-2020. VIX 40+.

Flash crash

SPY -20%
Black-swan day. 1987-style. VIX 60+.

2008-style year

SPY -40%
Compressed into one window. GFC. VIX sustained 50+.

Squeeze rally

SPY +15%
FOMO melt-up. Tests if you sit out or chase.

Vol shock

VIX +200%
Vol explodes, no big move yet. Premium dries up.
Portfolio impact
--
P&L (book size)
--
Days to recover
--
Max drawdown
--
📉 Portfolio path under stress
🎯 Per-position damage
POSITION
EXPOSURE
BETA
HIT
💡 Reading the stress test
Stress tests answer one question: "Can I survive this?"

If portfolio impact > 25%: Position sizes are too aggressive. Cut size or hedge.
If recovery > 60 days: Drawdown is psychologically destructive — you'll panic-sell. Reduce risk.
If beta > 1.5: Brain is concentrated in high-beta names that crash hardest. Diversify.

The model can't predict black swans, but you can survive them by sizing for the worst day, not the best.