Glossary
Everything explained, in one place.
Edge Score
Quantprove’s 0-100 grade for a strategy’s statistical edge on historical data, scored across four weighted buckets.
Stability Score
Quantprove’s 0-100 grade for whether your live results still match the backtest distribution out of sample.
Health Score
A 0-100 combined score that shows whether a live strategy’s edge is still holding or quietly decaying over time.
Overfitting
When a strategy is tuned so tightly to past data that it captures noise instead of a real edge, and falls apart live.
Expectancy
What a trading strategy makes per trade on average, once its wins and losses are netted out.
Sortino Ratio
A risk adjusted return that judges a strategy only on its downside swings, not its upside.
Maximum Drawdown
The largest peak to trough drop in an equity curve, the worst losing stretch a strategy has handed you.
Monte Carlo Simulation
Reshuffling your trades thousands of times to map the range of outcomes your edge could produce.
R Multiple
Each trade measured as a multiple of the risk you took, where a full stop out is always minus 1R.