It is necessary to calculate the volatility of an asset using the standard deviation of returns so that the 'Value at Risk' (VaR) can then be calculated.
Eventually, this series will explain how to measure and manage the risk of an entire portfolio using value at risk. But it's necessary to start simple and initially calculate the standard deviation for a single position.
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This is Episode 6 in the Darwinex 'Institutional-Grade Risk Management Techniques' Playlist: https://youtube.com/playlist?list=PLv-cA-4O3y979Ltr9wQ2lRJu1INve3RCM
Video Contents:
00:00 Introduction to Standard Deviation and Volatility
00:18 Why Darwinex?
01:07 Simple example of Calculating VaR for a single asset
02:11 Downloading Price Data from MT5 Symbol Manager
03:25 Calculating Standard Deviation Volatility in Excel
05:28 Histogram of Returns (Frequency Distribution)
14:35 Summary and Next Episodes
Content Disclaimer: Past performance is not a reliable indicator of future results. The contents of this video (and all other videos by the presenter) are for educational purposes only and are not to be construed as financial and/or investment advice.
Risk disclosure: https://www.darwinex.com/legal/risk-disclaimer