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Practice Drills: Stress Testing a Portfolio Against Historical Crisis Scenarios
A drill-heavy course for quant researcher aspirants, prop trading applicants and systematic traders scaling up capital who understand VaR and volatility but have never actually put a portfolio through a crisis. You work on one sample ₹50 lakh Indian portfolio across Nifty stocks, a small-cap sleeve, gilt and credit debt funds, gold and a US equity fund. You map its factor exposures, replay four real Indian market crises by hand, measure drawdown and recovery, watch correlations break, attribute the losses, design hypothetical and reverse stress tests, check whether you could even exit the small caps, and finish by building a replay engine in Python and writing the stress test report a risk committee would expect.
Stress TestingHistorical Scenario AnalysisDrawdownFactor ExposureReverse Stress TestingLiquidity RiskPython for Quant Finance
MODULES
5
DURATION
~3 hrs
TRACK
Quantitative Finance
What You'll Master
Decompose a multi-asset Indian portfolio into equity beta, rate, currency and credit exposures
Pick crisis windows honestly, with defensible peak, trough and recovery dates
Replay the 2008 GFC, 2013 taper tantrum, 2018 IL&FS crisis and 2020 COVID crash on a real portfolio
Measure peak-to-trough drawdown, time underwater and recovery time for each scenario
Show how correlations shift in a crisis and quantify how much diversification actually helped
Attribute crisis losses to individual holdings and to risk factors
Build hypothetical scenarios by scaling and combining historical shocks
Run a reverse stress test to find the shock that breaches your loss limit
Estimate liquidity stress from impact cost, circuit limits and days-to-exit
Build a reusable crisis replay engine in Python and report a full stress test end to end
Access Level
LEARNER
Everything included
Full Text Playbooks
Actionable Exercises
Mobile Reading Mode
Lifetime Updates
Curriculum Breakdown
Chapter 1: Setting Up the Drill
3 Lessons▶
Drill Setup: The ₹50 Lakh Portfolio We Will Stress Test, and What a Stress Test Can and Cannot Tell You9 min read
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Drill: Mapping Every Holding to Its Risk Factors: Nifty Beta, Rates, Rupee and Credit12 min read
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Drill: Choosing Crisis Windows Honestly: Peak, Trough and Recovery Dates10 min read
Chapter 2: Replaying Four Indian Crises by Hand
4 Lessons▶
Drill: Replaying the 2008 Global Financial Crisis on the Sample Portfolio12 min read
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Drill: Replaying the 2013 Taper Tantrum, When the Rupee and Bonds Fell Together12 min read
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Drill: Replaying the 2018 IL&FS Crisis Through Credit Funds and NBFC Stocks12 min read
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Drill: Replaying the March 2020 COVID Crash Week by Week12 min read