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Volatility Simulation is the process of modeling how unpredictable price movements might affect investments, portfolios, or entire markets. Olympus AI uses volatility simulations to test trading strategies under extreme market conditions, helping traders prepare for sudden swings. These simulations can incorporate historical volatility patterns, hypothetical shocks, and even human bias models. Understanding how volatility impacts positions allows for better risk management and more robust portfolio construction. For institutional investors, volatility simulation is a core part of stress testing before deploying large sums of capital.
