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METHODOLOGY v2.0

The Science of
Robustness

Strategy Grade is not just a scanner. It is a rigorous Quantitative Research Engine designed to filter out luck and identify structural market anomalies.

The S.G. Score

Most backtesters lie. They show you strategies with 500% returns that only traded twice. We developed the Strategy Grade Score to penalize "lucky" strategies and reward consistency.

Score = Profit Factor × Sortino × (1 - MaxDD) × ln(Trades)

Profit Factor

Gross Profit divided by Gross Loss. Measures the raw edge of the strategy.

Sortino Ratio

Like Sharpe, but only penalizes downside volatility. We don't punish upside spikes.

Drawdown Penalty

Scores are crushed if the strategy risks blowing up the account (MaxDD).

Statistical Significance

We take the Natural Log of trade count. A strategy with 5 trades is noise. 500 trades is signal.

The Equity Curve

The Equity Curve visualizes the growth of a hypothetical $10,000 account over the last 4 years.

Unlike simplistic "buy and hold" charts, our engine simulates every entry and exit based on the strategy logic (e.g., RSI crossovers). We calculate fees, slippage, and compounding returns to give you a realistic view of performance.

  • Steepness: Indicates the velocity of returns.
  • Flat Periods: Times when the strategy stayed in cash (safety).
  • Drawdowns: The dips in the curve show the pain you would have felt trading it live.

Why Strategy Grade?

The Problem

Retail traders are gambling. They use indicators like RSI or MACD based on YouTube tutorials, without ever testing if they actually work. They are trading on hope, not data.

Our Solution

We built a Hedge Fund in a Box. We scan the entire S&P 500 every night, run 12,000+ simulations, and only show you the strategies that have mathematically proven their edge over the last 4 years.