# Swoopr Investment: Risk Management
# Scoped content manifest for LLM agents and web crawlers.
# Generated: 2026-10-09
# 22 pages in this section.
# Root index: https://www.getswoopr.com/llms.txt

## Learn: Risk Management

- [Trading Risk Management for Stocks](https://www.getswoopr.com/risk-management/) ([Markdown](https://www.getswoopr.com/risk-management.md)): Risk becomes actionable when expressed as an amount the account can lose under a stated scenario. Learn the framework, risks, examples, and next steps.
- [Drawdown and Recovery Gain Calculator](https://www.getswoopr.com/risk-management/drawdown-and-recovery-calculator/) ([Markdown](https://www.getswoopr.com/risk-management/drawdown-and-recovery-calculator.md)) (WebMCP tools: calculate_drawdown, calculate_recovery_gain): Measure peak-to-trough decline from your own equity series and see the gain each drawdown then requires, because a 50% loss needs a 100% gain to break even.
- [Liquidity-Adjusted Position Sizing](https://www.getswoopr.com/risk-management/liquidity-adjusted-position-sizing/) ([Markdown](https://www.getswoopr.com/risk-management/liquidity-adjusted-position-sizing.md)): Liquidity-adjusted position sizing caps a trade by how much of average daily volume it represents, not only by stop distance. Formula, example, warning signs.
- [Portfolio Performance Metrics: Sharpe](https://www.getswoopr.com/risk-management/performance/) ([Markdown](https://www.getswoopr.com/risk-management/performance.md)): Sharpe, Sortino, Calmar, CAGR, alpha, beta, drawdown, and Value at Risk explained in one place, with links to all 14 deep-dive performance metric guides.
- [Alpha & Beta Explained: Formula](https://www.getswoopr.com/risk-management/performance/alpha-beta/) ([Markdown](https://www.getswoopr.com/risk-management/performance/alpha-beta.md)): Alpha and beta formulas explained with a full worked example, how to estimate beta from returns, benchmark selection, and mistakes that skew both metrics.
- [CAGR: Formula, Example & Blind Spots](https://www.getswoopr.com/risk-management/performance/cagr/) ([Markdown](https://www.getswoopr.com/risk-management/performance/cagr.md)) (WebMCP tool: calculate_cagr): CAGR turns a multi-year return into one smoothed annual growth rate. See the formula, a full worked example, and the drawdown blind spots it hides.
- [Calmar Ratio: Formula & Worked Example](https://www.getswoopr.com/risk-management/performance/calmar-ratio/) ([Markdown](https://www.getswoopr.com/risk-management/performance/calmar-ratio.md)): Calmar Ratio = CAGR ÷ Maximum Drawdown, typically over a trailing 3-year window. See the formula, a worked example, and how it compares to Sharpe.
- [Diversification Ratio Formula](https://www.getswoopr.com/risk-management/performance/correlation-diversification-ratio/) ([Markdown](https://www.getswoopr.com/risk-management/performance/correlation-diversification-ratio.md)) (WebMCP tool: analyze_correlation_risk): Correlation ranges from -1 to +1 and sets the diversification ratio, the real math behind how much diversification benefit a portfolio actually captures.
- [Expectancy and R-Multiples Explained](https://www.getswoopr.com/risk-management/performance/expectancy-r-multiples-portfolio/) ([Markdown](https://www.getswoopr.com/risk-management/performance/expectancy-r-multiples-portfolio.md)): R-multiples measure trade risk in multiples of R, not dollars. Learn the expectancy formula, a worked example, and how it rolls up across a portfolio.
- [Maximum Drawdown & Duration Explained](https://www.getswoopr.com/risk-management/performance/max-drawdown-duration/) ([Markdown](https://www.getswoopr.com/risk-management/performance/max-drawdown-duration.md)): Maximum drawdown measures the worst peak-to-trough decline in an equity curve. Learn to calculate it, drawdown duration, and the recovery math correctly.
- [Portfolio Performance Dashboard](https://www.getswoopr.com/risk-management/performance/performance-dashboard/) ([Markdown](https://www.getswoopr.com/risk-management/performance/performance-dashboard.md)) (WebMCP tool: calculate_portfolio_performance): A cadence framework for reviewing Sharpe, drawdown, win rate, CAGR, and more, plus a worked monthly review of a $150,000 portfolio you can copy today.
- [Portfolio Volatility & Diversification](https://www.getswoopr.com/risk-management/performance/portfolio-volatility/) ([Markdown](https://www.getswoopr.com/risk-management/performance/portfolio-volatility.md)): Portfolio volatility is not a weighted average of asset volatilities. See the two-asset formula, worked diversification math, and annualizing rules.
- [Rolling Returns: Why One Number Can Mislead](https://www.getswoopr.com/risk-management/performance/rolling-returns/) ([Markdown](https://www.getswoopr.com/risk-management/performance/rolling-returns.md)): A rolling return recalculates performance over a sliding window at every period, showing how much a single headline return can vary by check date.
- [Sharpe Ratio Explained: Formula](https://www.getswoopr.com/risk-management/performance/sharpe-ratio/) ([Markdown](https://www.getswoopr.com/risk-management/performance/sharpe-ratio.md)): The Sharpe ratio divides excess return over the risk-free rate by volatility. See the formula, two worked examples, what counts as good, and its limits.
- [Sortino Ratio: Formula](https://www.getswoopr.com/risk-management/performance/sortino-ratio/) ([Markdown](https://www.getswoopr.com/risk-management/performance/sortino-ratio.md)): The Sortino ratio divides excess return by downside deviation only, ignoring upside swings. See the formula, a worked example, and a Sharpe comparison.
- [Time-Weighted vs. Money-Weighted Return](https://www.getswoopr.com/risk-management/performance/time-weighted-vs-money-weighted-return/) ([Markdown](https://www.getswoopr.com/risk-management/performance/time-weighted-vs-money-weighted-return.md)): TWR and MWR (IRR) can diverge sharply on the same account. See a worked example of why, the formulas behind each, and which one answers your question.
- [Value at Risk (VaR): Formula & Example](https://www.getswoopr.com/risk-management/performance/value-at-risk/) ([Markdown](https://www.getswoopr.com/risk-management/performance/value-at-risk.md)) (WebMCP tool: calculate_value_at_risk): Value at Risk (VaR) estimates the loss a portfolio likely will not exceed at a given confidence level. See the formula, worked example, and its blind spot.
- [Win Rate vs. Profit Factor](https://www.getswoopr.com/risk-management/performance/win-rate-vs-profit-factor/) ([Markdown](https://www.getswoopr.com/risk-management/performance/win-rate-vs-profit-factor.md)): A 70% win rate can lose money while a 35% win rate can be highly profitable. Win rate and profit factor formulas, worked examples, and portfolio rollup.
- [Portfolio Heat & Maximum Loss Calculator](https://www.getswoopr.com/risk-management/portfolio-heat-calculator/) ([Markdown](https://www.getswoopr.com/risk-management/portfolio-heat-calculator.md)) (WebMCP tool: calculate_portfolio_heat): Add up the open risk across every position you hold, group correlated trades, and see the total loss if every stop triggered on the same day, slippage included.
- [Portfolio Risk: Correlation](https://www.getswoopr.com/risk-management/portfolio-risk/) ([Markdown](https://www.getswoopr.com/risk-management/portfolio-risk.md)): Ten trades risking 1% each can create far more than 1% portfolio risk when they are correlated. Learn the framework, risks, examples, and next steps.
- [Risk Limits by Strategy Family Compared](https://www.getswoopr.com/risk-management/risk-limits-by-strategy-family/) ([Markdown](https://www.getswoopr.com/risk-management/risk-limits-by-strategy-family.md)): Day trading, swing trading, trend-following, mean reversion, and options strategies each need different risk-limit conventions. Compare sizing basis and levers.
- [Stop Loss and Risk Reward Calculator](https://www.getswoopr.com/risk-management/stop-loss-and-risk-reward-calculator/) ([Markdown](https://www.getswoopr.com/risk-management/stop-loss-and-risk-reward-calculator.md)) (WebMCP tools: calculate_stop_loss, calculate_risk_reward): Place a stop by percentage, ATR multiple, or chart level, size the position from the dollars you accept losing, and see the win rate that ratio requires.