Section 5: Trader Metrics
Goal: Quantify each trader’s performance across five key dimensions — profitability, risk, consistency, luck, and market correlation.
RAX employs two categories of metrics:
- Raw Metrics: Standardized, institution-grade measures such as the Sharpe Ratio, used globally to assess performance and risk-adjusted returns.
- Scores: Proprietary algorithms developed by RAX to evaluate behavioral and performance patterns, such as the Consistency Score.
The Trader Scores
Each trader is evaluated across five distinct dimensions, each represented by a score ranging from 1 to 100.
Together, these scores provide a comprehensive profile of a trader’s behavior, performance consistency, and risk management discipline.
1. Overall Score
Represents the trader’s ability to achieve superior risk-adjusted returns compared to peers.
A higher score indicates consistent performance with limited drawdowns and controlled volatility.
2. Profitability Score
Measures the trader’s capacity to generate returns independent of account size or market conditions.
Scores are calculated as a percentage of account value, ensuring fair comparisons across traders.
A higher score reflects stronger absolute and relative profitability.
3. Risk Score
Evaluates the trader’s risk management discipline—how much risk they assume to achieve returns and how effectively they recover from losses.
This includes analyzing drawdown depth, volatility, and recovery speed.
Higher scores indicate superior control of downside exposure.
4. Consistency Score
Assesses the trader’s ability to deliver stable returns over time.
Can they exploit alpha reliably, or do they exhibit high variance in daily P&L without a repeatable edge?
A higher consistency score indicates disciplined trading and stable long-term performance.
5. Luck Score
Determines whether a trader’s results stem from skill or randomness.
A higher score reflects less reliance on luck, isolating consistent, repeatable performance patterns.
(Note: Lower luck scores may indicate dependence on short-term volatility or outlier events.)
Comprehensive Metrics
Beyond our proprietary scoring system, RAX provides an institutional-grade suite of performance metrics—the same benchmarks used by leading financial institutions to assess trader performance.
This advanced framework ensures that every user has access to quantitative, professional-level insights for making informed trading and investment decisions.