As you see, I put in a portfolio value of $200,000 and a "desperation value" of $150,000:
Next you get a series of questions comparing alternatives, comprised of taking a sure gain or preferring an uncertain situation of a much higher gain (hit the ball in the upper deck) or dropping back to your "desperation value."
Here is the first alternative:
As you choose among these alternatives, the bar will eventually fill up and you'll receive a risk score. I have to admit that I have never liked answering these types of hypotheticals as a means of uncovering risk tolerance. I would rather look at past behavior and study historical returns. I will say, though, that Riskalyze's approach may work well for some people and, admittedly, it is based on academic research.
The next set of choices will seek to present you with a case where you start out with your portfolio dropping. Would you, in that instance, seek to take a chance to regain your position? It proceeds through these kinds of questions to get at a risk score.
So, quantifying in this way can be useful for some people.
At this point, Riskalyze asks if you have a prediction for the market or if you would like to use historical returns. After you pick, it will then construct a portfolio based on your choice in the first graphic above. What I really like is that - as seen in the first graphic above- it allows for a simple portfolio. This is the route I would definitely choose unless you want to make managing your portfolio a full time job.
Overall, this is an interesting program and one I think most DIYers will find useful to play around with. Try and see how different it is compared to what you are doing.