StratBase Score & Risk Score
StratBase Score & Risk Score
Two rating systems evaluate your strategy from different angles: StratBase Score measures historical performance quality, while Risk Score assesses the inherent risk of the strategy configuration.
StratBase Score (0-100)
A composite grade calculated from 5 weighted factors after the backtest completes.
Scoring Factors
| Factor | Weight | What It Measures | |--------|--------|-----------------| | Stability | 25% | R-squared of equity curve linear regression (0–1) | | Recovery Factor | 20% | Total profit / max drawdown | | Profit Consistency | 25% | Percentage of profitable months | | Payoff Ratio | 15% | Average win / average loss | | Overfitting Risk | 15% | Condition-to-trade ratio, Sharpe anomalies, trade clustering |
Score Ranges
| Score | Description | |-------|-------------| | 90–100 | Exceptional — consistent, well-protected, strong edge | | 80–89 | Excellent — reliable with manageable drawdowns | | 70–79 | Good — solid but with some weaknesses | | 60–69 | Above average — room for improvement | | 50–59 | Average — mixed results | | 40–49 | Below average — significant issues | | 0–39 | Poor — fundamental problems with the strategy |
How Each Factor Works
Stability (25%): Measures how closely the equity curve follows a straight upward line. R-squared of 0.95 means the equity curve is very smooth and predictable.
Recovery Factor (20%): If your strategy made $5,000 and the worst drawdown was $1,000, recovery factor = 5.0. Score: 5+ = full points.
Profit Consistency (25%): If 8 of 10 months were profitable = 80% = high score.
Payoff Ratio (15%): Average winning trade / average losing trade. A ratio of 2.0 means wins are twice as large as losses. Score: 3+ = full points.
Overfitting Risk (15%, inverted): Penalizes strategies where:
- Many conditions but few trades (overfit to specific patterns)
- Unrealistically high Sharpe with very few trades
- Trades concentrated in a few months
Risk Score (1-10)
A real-time assessment of your strategy configuration — calculated before running the backtest.
Risk Factors
| Factor | Weight | Low Risk | High Risk | |--------|--------|----------|-----------| | Leverage | 2.5 | 1× = 0 pts | 20× = 8, 30×+ = 10 pts | | Stop Loss | 2.0 | Trailing = 2 | None = 10 | | Position Size | 1.5 | <= 10% = 1 | > 50% = 9 | | Grid Orders | 1.0 | None = 0 | > 10 = 6 | | Conditions | 1.0 | >= 3 = 1 | 0 = 9 | | Take Profit | 1.5 | Multi-level = 1 | None = 9 |
Risk Levels
| Score | Level | Color | |-------|-------|-------| | 1–3 | Low | Green | | 4–5 | Medium | Yellow | | 6–7 | High | Orange | | 8–10 | Critical | Red |
Reading the Risk Score
The risk score updates in real-time as you change strategy parameters. Use it as a guide:
- Low (1-3) — conservative configuration, suitable for beginners
- Medium (4-5) — balanced, acceptable for most strategies
- High (6-7) — aggressive, ensure you understand the risks
- Critical (8-10) — extreme risk, high chance of significant losses
Tip: StratBase Score tells you "how did it perform?" Risk Score tells you "how risky is the setup?" A strategy can have a 95/100 StratBase Score but a 9/10 Risk Score — meaning it performed great historically but the configuration is very risky.
FAQ
Q: Can I improve my StratBase Score? A: Yes. Focus on consistency (add exit conditions to avoid large losses), improve payoff ratio (widen TP or tighten SL), and ensure trades are spread across the test period.
Q: Why is my Risk Score high? A: Check leverage, stop-loss presence, and position sizing. Adding a stop-loss and reducing leverage are the quickest ways to lower risk.
Q: Does StratBase Score guarantee future performance? A: No. StratBase Score is based on historical data only. Past performance does not predict future results. Always use proper risk management.