Risk Metrics & Portfolio Analytics
Quantify risk, maximize risk-adjusted returns.
Master Risk Management
Protect your capital first, grow it second. This dashboard quantifies risk through professional metrics: Sharpe Ratio (risk-adjusted returns), Volatility (price swings), Max Drawdown (worst-case losses), and VaR (daily risk exposure). Use these to size positions appropriately and avoid overleveraging during euphoria.
💡 Métriques de risque crypto
Les indicateurs de risque vous aident à ne pas acheter au sommet et à identifier les opportunités d'achat. Volatilité, drawdown, Sharpe ratio...
⚠️ Signaux d'alerte : Volatilité > 80% = marché très risqué. Drawdown > -50% = correction sévère en cours. Fear & Greed < 20 = opportunité d'achat potentielle.
💡 Why Risk Metrics Matter (Professional Trading)
- Sharpe Ratio: Risk-adjusted returns (>2 = excellent, <1 = poor)
- Maximum Drawdown: Worst peak-to-trough loss (risk tolerance check)
- Volatility (30d/90d): Position sizing calculator
- Value at Risk (VaR): Expected loss at 95% confidence
- Risk-Adjusted Performance: Compare returns accounting for risk taken
High returns mean nothing without understanding the risk taken to achieve them!
💵 Returns Performance
💡 Risk-Adjusted Returns - Volatility & Sharpe Ratio
Volatility measures price fluctuation (standard deviation) - how wild the swings are. Sharpe Ratio measures risk-adjusted returns - how much return you get per unit of risk taken. Higher Sharpe = better risk/reward. These metrics help compare assets fairly.
📊 Investment Strategy:
• High Volatility (>80%) = Very risky, position size accordingly (max 5% of portfolio)
• Sharpe >2.0 = Excellent risk/reward, outperforming risk-free rate significantly
• Sharpe <1.0 = Poor risk/reward, consider if risk is worth it
• Compare across periods - decreasing volatility + increasing Sharpe = market maturing
📊 Volatility Analysis (Annualized)
>80%: Extreme | 50-80%: High | <50%: Moderate
📈 Sharpe Ratio Analysis
>2.0: Excellent | 1.0-2.0: Good | <1.0: Poor
💡 Drawdown Analysis - Maximum Pain
Drawdown measures the decline from a peak (all-time high) to the lowest point before a new peak. It shows you the maximum pain you would have experienced holding from the top. This is crucial for understanding your risk tolerance and position sizing.
⚠️ Risk Management:
• -20% to -30% = Healthy correction in bull market (normal)
• -50% to -70% = Bear market territory (test of conviction)
• -80%+ = Crypto winter / severe bear market (max pain)
• If you can't stomach a -80% drop, reduce position size or avoid crypto
• Drawdowns are NORMAL in crypto - BTC has had 6 drawdowns >50% in its history
📉 Drawdown Analysis - Peak to Trough Losses (90 days)
0% = ATH | -20 to -30% = Healthy correction | -50 to -80% = Bear market
⚠️ Value at Risk (VaR) - Downside Risk Quantification
Expected maximum loss at 95% confidence (1 in 20 periods will be worse)
📊 Additional Risk Metrics
🎯 Position Sizing Guide
Based on 1-day VaR (0.00%) and 2% risk tolerance