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Risk engine / Var behavior for positions with long holding period

In case I want to offer investors a DARWIN with a long holding period of products, sort of weeks time line. Will the risk engine penalize my DARWIN and give it a high VAR or close investors positions prematurely?

In other words, if my long positions are performing well, does the risk engine still kicks in or ignores them?

Hi @jerusalem :slightly_smiling_face:

I encourage you to watch the following videos for clarity on how risk per position and VaR are calculated at Darwinex:

I’d grab a coffee first though :wink:

Hope these resources prove useful :handshake:

Thank you @integracore2 for the quick respose

I am familiar with these videos and watched them in the past. The challenge I have with the practicallity of the risk engine behvaior, is what will happen if I run this “silly” strategy of holding different stocks for x weeks. Let’s say for the sake of example, that I buy a CFD on Tesla and let it run without adding any other position, as we know, the stock kept going up and up YTD, does it means that my Var will also go up and up as the holiding period is so long?

What about a simple portfolio as such opened in 2020.01.01? Will it have a var > 50%?