[02] Stress Testing Your Life - What Happens at -30%, -50%, -60%?

It looks like you have a Python script that generates a plot to visualize the margin ratio versus portfolio drawdown for stress testing purposes. The code uses matplotlib and possibly pandas or another database interaction library to fetch data from a SQLite database.

Here's an improved version of your script with some minor adjustments for clarity, including comments explaining each step:

python
 
1import sqlite3
2import numpy as np
3import matplotlib.pyplot as plt
4
5# Connect to the SQLite database (adjust according to your setup)
6conn = sqlite3.connect('your_database.db')
7cursor = conn.cursor()
8
9# Fetch portfolio value and margin details from the database
10query = "SELECT portfolio_value, freeze_ratio, call_ratio, liquidation_ratio FROM margins"
11cursor.execute(query)
12
13portfolio_value, freeze_ratio, call_ratio, liquidation_ratio = cursor.fetchone()
14freeze_ratio *= 100
15call_ratio *= 100
16liquidation_ratio *= 100
17
18# Close the database connection after fetching data
19conn.close()
20
21# Calculate margin ratios for different drawdown levels
22drops = np.arange(0, 120)  # Portfolio drawdown in percentage
23ratios = portfolio_value / (portfolio_value * (1 - drops / 100))
24
25[Read the full article at DEV Community](https://dev.to/soytuber/02-stress-testing-your-life-what-happens-at-30-50-60-5gbo)
26
27---
28
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