Risk Score

The Risk Score (0–100) measures how well a strategy protects capital. A high-return strategy with devastating drawdowns will get a low risk score, while a steady equity curve with controlled losses scores well.

How It Works

The Risk Score evaluates multiple weighted metrics that capture different dimensions of capital protection. Each metric is normalized to a 0–100 scale and combined into the final score.

Key areas assessed include the depth and duration of drawdowns, risk-adjusted returns, equity curve stability, and recovery characteristics.

What Makes a Good Risk Score

How to Improve

This score is judged on the worst of what your history contains, not the average of it. Aim at the bad stretches:

• Deep drawdowns? Review your stop-loss levels — exits may be too wide relative to trade targets.
• A few losses dwarfing your typical win? Your worst losses matter more here than your ordinary ones. One outsized loss hurts more than several small ones adding to the same total, so capping the tail with a firm stop beats widening it and hoping.
• Slow to climb back? Time spent underwater counts against you separately from how far you fell. A strategy that recovers quickly from a deep hole can score better than one that drifts sideways for months after a shallow one. Diversifying across uncorrelated strategies in Portfolio Studio is usually the most effective fix.
• Still low after fixing the obvious? One bad stretch early in a long backtest keeps counting — it does not age out. Monte Carlo shows whether that stretch was bad luck or a property of the strategy, and the Calendar Returns view shows whether losses cluster in particular periods.