Prerequisites
Probability, position accounting, portfolio weights and scenario analysis.
What to study
Study volatility, correlation, drawdowns, tail losses, sensitivities and stress tests. Link each metric to a concrete control: position limits, loss budgets, liquidity constraints or an escalation rule.
A project to complete
Reconstruct an account's drawdown and historical tail losses. Add a concentration cap, compare before/after exposure and stress a joint move that is worse than the calibration sample.
A useful deliverable
Publish the problem definition, documented data, assumptions, reproducible code, a simple comparison and a short discussion of failure cases. Label demonstrations and provisional findings clearly.
Continue reading
Use the first supporting lesson, the next practical topic, and the source reading lists. The repository map shows where earlier material is held.