Health Monitor

The Health Monitor provides ongoing surveillance of a strategy's health. While the Health Score on the Quality Report gives a snapshot, the Health Monitor shows you where and how a strategy is drifting from its historical self. For context on why health monitoring matters, see Why Strategies Fail — Regime Dependency.

Where to find it: In the app sidebar, open Health Monitor, then pick a strategy with the strategy picker at the top (or jump straight in from the Strategy Hub via View HM). The page analyzes one strategy at a time.

Page Layout & Options

The page is organized into sections you can jump to from the sidebar: Health Status, Equity & Drawdown, Performance Tables, Rolling Sharpe, Win Rate Divergence, and Trade P/L vs StDev.

Two controls apply throughout:

• Position filter — analyze the Full Strategy, Long Only, or Short Only. Useful when one side of a symmetric strategy is degrading while the other still works.
• Window view toggle — show charts for IS+OOS (baseline and recent periods together) or OOS Only (zoom into just the recent window).

Traffic Light System

Each strategy gets a traffic light status based on its Health Score:

Equity & Drawdown (IS/OOS Window)

Two paired charts — Equity Curve (IS/OOS Window) and Drawdown (IS/OOS Window) — with the in-sample/out-of-sample boundary marked. This is the fastest visual check: does the recent equity slope look like the historical one, and are recent drawdowns deeper or longer than they used to be?

Performance Tables (Recent Performance Metrics)

The Health Monitor splits your trade history into In-Sample (historical baseline) and Out-of-Sample (recent performance) periods, then measures divergence across key metrics — grouped into core edge, risk/consistency, and profitability tables. For each strategy, it shows side-by-side IS vs. OOS metrics:

Example data — negative divergence in returns metrics and positive divergence in risk metrics both indicate degradation.

Performance Trend Charts

Rolling Sharpe

Tracks the Sharpe Ratio over rolling windows to see if risk-adjusted returns are trending down. A gradual slide is a stronger degradation signal than a single bad month.

Win Rate Divergence

Compares the rolling win rate against the historical average. A persistent drop below baseline signals degradation; brief dips are normal variance.

Trade P/L vs StDev

Individual trade results plotted over time against their historical standard deviation bands. Trades landing outside the bands — especially clusters of unusually large losses — mean the strategy is behaving differently than it used to.

Alert System

The Health Monitor generates alerts when:

• Health Score drops below a threshold
• A circuit breaker triggers (e.g., recent drawdown exceeds 50%)
• Win rate collapses to less than half the historical rate
• Consecutive loss streak exceeds the historical maximum

Best Practices

1. Review weekly — Check traffic lights for all active strategies
2. Investigate orange — Don't wait for red; investigate caution signals early
3. Compare IS/OOS — Look at which specific metrics are degrading
4. Act on red — When a strategy hits red, reduce exposure or stop trading entirely. Use the IS/OOS comparison to understand which metrics degraded and whether the issue is temporary (a losing streak) or structural (a broken edge)