About the trading reliability level

Strategy Providers (SP) and Portfolio Managers (PM) are assigned a score based on their trading performance, known as the trading reliability level. The trading reliability level is calculated by the weighted average of two values: safety score and value at risk (VaR) score.

The trading reliability level (TRL) is based on your performance across all strategies and funds, and represents a historical record of your reliability. Investors may be more likely to invest with traders that have high trading reliability levels.

How to find the trading reliability level:

1. Log into your Personal Area.
2. Open the Portfolio Management solutions tab.
3. Look for the trading reliability level shown beside your active strategy and/or fund.
4. Click any of them to open up a breakdown of that trading reliability level.

The breakdown of the TRL shows the safety score and VaR score, as well as a customisable historical chart of the trading reliability level. You can customize the chart by time frame, with results calculated daily.

Safety score

The safety score shows how well you avoid losing capital in a strategy/fund, such as when equity drops to zero or below during trading. The lower the score, the more often stop out has occurred in that strategy/fund.

VaR score

The VaR (value at risk) score shows how well you have managed drawdown, a single measurement of loss from peak-to-trough. The higher the VaR score, the less share of capital could be lost by the Investor in worst case scenarios.

About trading reliability level scoring

A trading reliability level (TRL) is a number between 0 and 100, assigned to a SP/PM based on their trading performance. The higher the level the more reliable the trading performance of that trader has been. TRL can only be calculated 30 days after the first trade is opened in a strategy/fund.

Here’s how the levels breakdown:

0-40: Low score

41-70: Medium score

71-100: High score

Please note that the TRL is based on historical data and does not predict future performance.

Trading reliability level significance

When a SP/PM has a significant trading reliability level (TRL), it becomes visible to Investors. TRL significance is based on two factors:

• Extent score: This score shows trading experience, considering the margin to equity share over the duration orders by the SP/PM are open. Essentially, every open order contributes to the growth of the extent score. A higher margin-to-equity ratio and/or longer duration accelerates the growth of this metric, but it also increases the associated risk.
• Trading days: The number of days with trading activity.

When the SP/PM reaches an extent score of 10 over 10 trading days, their TRL becomes significant.

TRL restrictions

Lower TRL scores can result in restrictions on strategies and funds, including on maximum investment amounts and new Investor participation.

Consider these important restrictions:

For Strategy Provider TRL

• Strategy Providers can invite Investors, add Investors to strategies, and start allocation only if they have a significant TRL (as defined above)
• The level of the strategy (i.e green, yellow, red, etc) does not impose restrictions on strategies; only whether it is significant or non-significant applies.

For Portfolio Manager TRL

• High (green) level funds considered significant have no limitations on new Investors, investments or impose an additional maximum investment amount.
• Low (red), medium (orange), or non-significant TRL levels allows the creation of a fund, however Investors won’t be able to join and invest in the fund. Additionally, the maximum investment amount for the PM across all their funds is set to USD 200 000 per Investor.
• If a PM has an active fund with Investors but then loses their high (green) TRL, new Investors cannot join that fund; new investments will be unavailable until restoring a significant TRL score.