VaR (value at risk)

Value at Risk is defined as the daily loss that is expected to be exceeded on about 5% of all trading days, or said differently the loss you can expect in 1 of the next 20 trading days. The way it is calculated in PsyQuation is based on the VaR of each open position. This takes into account the current risk in the account not simply the VaR of the historic account equity curve.