TS Score




www.tradeslide.com
INDEX



1. WHAT IS IT?

2. WHAT’S THE POINT?

3. WHAT DRIVES IT?

4. QUESTIONS?




                       2
TS Score – What is it?

Our independent assessment of risk-adjusted profit potential for a strategy
How investable, from 0 (Flop) to 100 (Top), do we think a strategy is?



   1     Would we recommend a given strategy to any investor?




   2     Which of any two strategies is more investable?



   3     A diagnostic: where to focus to improve invest-ability?




                                                                              3
TS Score – What it isn’t!

The TS Score is a very powerful tool
But even the best tools should be handled knowledgeably



   1     No substitute for good judgement and due diligence – NOTHING is



   2     100% polished: full accuracy will require thousands of strategies rated




   3     The Holy grail: not everyone will agree with our assessment, and some
            may well be right




                                                                                   4
INDEX



1. WHAT IS IT?

2. WHAT’S THE POINT?

3. WHAT DRIVES IT?

4. QUESTIONS?




                       5
Weeding out lucky punters…

Both traders below were profitable
One of them was lucky… the other is SKILLED!



                                          •    2 possible sources of past performance:
                                                    •   Skill – will work going forward
                                                    •   Luck – won’t last indefinitely

                                          •    In addition to WHAT performance was
                                               achieved, the TS Score assesses HOW
                                               performance was obtained

                                          •    The purpose is to rule out LUCK as a
                                               source of past performance: if a profitable
                                               strategy wasn’t LUCKY, it’s investable!




                                                                                      6
… to solve your credibility gap!

What’s the point of a very good TS score?
If you can only use it at Tradeslide?



                                            •   We agree – there’s no point!!

                                            •   That’s why we encourage you to take it
                                                wherever it helps you
                                                     •   Twitter – signal your trading skill to
                                                         potential followers and filter your
                                                         friends by their TS Score
                                                     •   Linkedin – working on it!
                                                     •   Trader forums – enrich your alias
                                                         with your TS Score

                                            •   Install the Twitter extension HERE




                                                                                          7
INDEX



1. WHAT IS IT?

2. WHAT’S THE POINT?

3. WHAT DRIVES IT?

4. QUESTIONS?




                       8
What drives the TS Score?

   The TS Score is a measure of skill
   It summarizes progress on all elements of the TS Challenge!



                                                  •   TS Score reflects progress on Challenge:
                                                          •   Level of individual badges
                                                          •   Homogeneity across ALL badges
                                                          •   TS score penalized by level of
                                                              WORST badge)

                                                  •   And remember: performance by itself won’t
                                                      do much for your TS Score unless you’ve
                                                      ticked all the other boxes

Lack of Experience penalizes TS Score for this    •   After all, a strategy that loses consistently is
  strategy (yellow is the weakest colour at TS)
                                                      a very powerful indicator!!




                                                                                                 9
TS Score – Driven by the TS Challenge!

                                                 Rationale


         • The more experience, the higher the statistical confidence to rule out luck
   Ex


         • The more stable the risk, the more investable the strategy
   Rs



   Lc    • The more consistent the leverage, the more investable the strategy



   La    • The lower the loss aversion, the more investable the strategy



   Es    • The more consistent the exits, the better proof that the strategy is working



   Pf    • If you’ve achieved performance by relying only on skill, you deserve investor capital!




                                                                                                    10
TS Score – Driven by the TS Challenge!

                                        Impact                                          Rationale

                    • We’ll improve existing badges and            • Our goal is to improve the score forever 
 New Badges         introduce new ones as we go along – stay
                    tuned
                    •Not all badges are relevant to all strategy   • Exit strategy doesn’t apply for strategies using
                    types                                          hedge trades, etc.
Type of strategy


                    •The bigger the dispersion across levels in    • The more polished the strategy, the higher the
Relative level of
                    different relevant badges, the lower the       confidence of the investor
    badges
                    score
                    • The more strategies reported by a bigger     • The TS Score contains a “learning” algorithm
  Number of
                    trader community to the Challenge, the         that improves the more strategies report to it
  strategies
                    higher the accuracy of the TS Score




                                                                                                               11
INDEX



1. WHAT IS IT?

2. WHAT’S THE POINT?

3. WHAT DRIVES IT?

4. QUESTIONS?




                       12
Questions?

Trading is hard – no wonder there are unanswered questions!
(Why not, together, build a Knowledge Base that answers them all?)


                                            •   The Knowledge Base contains TS Mentors’
                                                answers to all your questions!
                                                    •    Mentors are Traders like you who
                                                         enjoy helping out, and are voted
                                                         very good at it, AND
                                                    •    Trading educators hand-picked for
                                                         quality and broker independence,
                                                         who pitch their materials

                                            •   Want to contribute? Great!
                                                    •    Post an article / Post
                                                    •    Ask or answer questions
                                                    •    Rate fellow traders’ contributions

                                            •   We’ll treat top contributors like shareholders!

                                                                                        13
Can you do better?
•   This article is a “stub” (an unfinished entry that MUST be improved)
         •     We need your questions & feedback to improve it!
         •     Feel free to post your questions to the TS Knowledge Base

•   Have suggestions?
        •   theowl@tradeslide.com can’t wait to hear them
        •   We’d love to credit you for improving our content

•   Contributing to the Q&A sections will boost your mentor score if others like what you post
    (even questions do!) – helping out will reflect on your community standing, which means
         •    More traders will visit the URL on your profile
         •    When they visit, they’ll request your mentoring!
         •    If they do it enough, we’ll share revenues and offer invitations to you




                                                                                                 14
TS Score

TS Score

  • 1.
  • 2.
    INDEX 1. WHAT ISIT? 2. WHAT’S THE POINT? 3. WHAT DRIVES IT? 4. QUESTIONS? 2
  • 3.
    TS Score –What is it? Our independent assessment of risk-adjusted profit potential for a strategy How investable, from 0 (Flop) to 100 (Top), do we think a strategy is? 1 Would we recommend a given strategy to any investor? 2 Which of any two strategies is more investable? 3 A diagnostic: where to focus to improve invest-ability? 3
  • 4.
    TS Score –What it isn’t! The TS Score is a very powerful tool But even the best tools should be handled knowledgeably 1 No substitute for good judgement and due diligence – NOTHING is 2 100% polished: full accuracy will require thousands of strategies rated 3 The Holy grail: not everyone will agree with our assessment, and some may well be right 4
  • 5.
    INDEX 1. WHAT ISIT? 2. WHAT’S THE POINT? 3. WHAT DRIVES IT? 4. QUESTIONS? 5
  • 6.
    Weeding out luckypunters… Both traders below were profitable One of them was lucky… the other is SKILLED! • 2 possible sources of past performance: • Skill – will work going forward • Luck – won’t last indefinitely • In addition to WHAT performance was achieved, the TS Score assesses HOW performance was obtained • The purpose is to rule out LUCK as a source of past performance: if a profitable strategy wasn’t LUCKY, it’s investable! 6
  • 7.
    … to solveyour credibility gap! What’s the point of a very good TS score? If you can only use it at Tradeslide? • We agree – there’s no point!! • That’s why we encourage you to take it wherever it helps you • Twitter – signal your trading skill to potential followers and filter your friends by their TS Score • Linkedin – working on it! • Trader forums – enrich your alias with your TS Score • Install the Twitter extension HERE 7
  • 8.
    INDEX 1. WHAT ISIT? 2. WHAT’S THE POINT? 3. WHAT DRIVES IT? 4. QUESTIONS? 8
  • 9.
    What drives theTS Score? The TS Score is a measure of skill It summarizes progress on all elements of the TS Challenge! • TS Score reflects progress on Challenge: • Level of individual badges • Homogeneity across ALL badges • TS score penalized by level of WORST badge) • And remember: performance by itself won’t do much for your TS Score unless you’ve ticked all the other boxes Lack of Experience penalizes TS Score for this • After all, a strategy that loses consistently is strategy (yellow is the weakest colour at TS) a very powerful indicator!! 9
  • 10.
    TS Score –Driven by the TS Challenge! Rationale • The more experience, the higher the statistical confidence to rule out luck Ex • The more stable the risk, the more investable the strategy Rs Lc • The more consistent the leverage, the more investable the strategy La • The lower the loss aversion, the more investable the strategy Es • The more consistent the exits, the better proof that the strategy is working Pf • If you’ve achieved performance by relying only on skill, you deserve investor capital! 10
  • 11.
    TS Score –Driven by the TS Challenge! Impact Rationale • We’ll improve existing badges and • Our goal is to improve the score forever  New Badges introduce new ones as we go along – stay tuned •Not all badges are relevant to all strategy • Exit strategy doesn’t apply for strategies using types hedge trades, etc. Type of strategy •The bigger the dispersion across levels in • The more polished the strategy, the higher the Relative level of different relevant badges, the lower the confidence of the investor badges score • The more strategies reported by a bigger • The TS Score contains a “learning” algorithm Number of trader community to the Challenge, the that improves the more strategies report to it strategies higher the accuracy of the TS Score 11
  • 12.
    INDEX 1. WHAT ISIT? 2. WHAT’S THE POINT? 3. WHAT DRIVES IT? 4. QUESTIONS? 12
  • 13.
    Questions? Trading is hard– no wonder there are unanswered questions! (Why not, together, build a Knowledge Base that answers them all?) • The Knowledge Base contains TS Mentors’ answers to all your questions! • Mentors are Traders like you who enjoy helping out, and are voted very good at it, AND • Trading educators hand-picked for quality and broker independence, who pitch their materials • Want to contribute? Great! • Post an article / Post • Ask or answer questions • Rate fellow traders’ contributions • We’ll treat top contributors like shareholders! 13
  • 14.
    Can you dobetter? • This article is a “stub” (an unfinished entry that MUST be improved) • We need your questions & feedback to improve it! • Feel free to post your questions to the TS Knowledge Base • Have suggestions? • theowl@tradeslide.com can’t wait to hear them • We’d love to credit you for improving our content • Contributing to the Q&A sections will boost your mentor score if others like what you post (even questions do!) – helping out will reflect on your community standing, which means • More traders will visit the URL on your profile • When they visit, they’ll request your mentoring! • If they do it enough, we’ll share revenues and offer invitations to you 14