Risk Score
The Risk Score (0–100) tells you how survivable a strategy's losses are — how hard and how long it can hurt you. Higher is safer. A high-return strategy with devastating losses will get a low Risk Score.
How It Works
The Risk Score is a proprietary score built from several measures of how a strategy loses money. The exact measures, weights, and thresholds are proprietary — like a credit score, you see the result and what moves it directionally, not the internal formula.
Below a minimum number of trades, the score isn't calculated and shows Not enough data.
What Makes a Good Risk Score
| Score | Meaning |
|---|---|
| 80–100 | Excellent capital protection — losses stay contained |
| 60–79 | Good risk management with manageable losses |
| 40–59 | Elevated risk — losses that would be hard to sit through |
| 1–39 | High risk — strategy may be too dangerous to trade |
How to Improve
Deep or prolonged drawdowns and outsized losses hurt this score. Position sizing and stop logic are the usual levers:
- Review your stop logic. A few uncontrolled losses can define a strategy's worst stretch; a firm, deliberate exit plan keeps them contained.
- Size for the bad stretches, not the average. The score judges the worst of what your history contains. Monte Carlo shows how bad things could plausibly get, and the Calendar Returns view shows whether losses cluster in particular periods.
- Diversify. Combining uncorrelated strategies in Portfolio Studio is usually the most effective way to make a bad stretch shallower and shorter.
Tip
Use Monte Carlo simulation to stress-test your risk profile — see how drawdowns could behave in scenarios worse than your backtest history.
Tip
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