Strategy & Edge Analytics

The Strategy & Edge analytics module evaluates performance across your custom setup models, entry triggers, asset tickers, and technical confluences. It separates temporary market luck from mathematical expectancy, providing the quantitative telemetry needed to scale winning playbooks and eliminate systematic account drains.

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1. System Quality Number (SQN) (strategy_sqn)

Developed by Dr. Van K. Tharp, the System Quality Number (SQN) quantifies how easily a system can be traded and how reliably it generates compounded equity growth by evaluating expectancy, return variance, and sample size:

Formula / Calculation
SQN = (Expectancy / Standard Deviation of R-Multiples) × √N

Scorecard Classification

• SQN < 1.6 (Poor / Volatile): High variance in returns with frequent sharp drawdowns; vulnerable to regime shifts.
• SQN 1.6 → 2.0 (Average): Viable edge but requires strict discipline due to moderate drawdown dispersion.
• SQN 2.0 → 3.0 (Good / Robust): Clean equity trajectory suitable for prop firm scaling and capital compounding.
• SQN > 3.0 (Excellent / Elite): Minimal dispersion relative to reward, producing steady, linear growth.

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2. Setup Qualification & Strategy Breakdown

Win Rate by Setup (strategy_win_rate)

Measures the statistical hit rate for each distinct playbook setup category (e.g., FVG Reversals, Break & Retest, London Breakouts).

Performance by Setup (strategy_performance_setup)

Displays the cumulative net monetary PnL generated by each custom strategy or trigger model, isolating your primary profit drivers from underperforming setups.

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3. Asset Exposure & Profitability Matrix

Top Symbols by Count (strategy_top_count)

• Bar / Donut Toggle: Switch between horizontal rank bars and proportional exposure donut slices.
• Concentration Risk: Identifies whether 70%+ of your volume is over-concentrated in a single high-volatility ticker or diluted across too many instruments.

Net Profit by Symbol (strategy_symbol_profit & strategy_top_profit)

Ranks instruments by absolute accumulated net monetary return to highlight which assets drive capital growth.

Continuous Dynamic Gradient Heatmaps

• Win Rate by Symbol (strategy_top_win_rate) & Profit Factor (strategy_top_profit_factor): Uses continuous color gradients from lowest-performing to highest-performing assets to instantly flag drag.

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4. Mathematical Expectancy & Capital Efficiency

Mathematical Expectancy (strategy_top_expectancy)

Defines the average monetary return per trade over a statistically significant sample:

Formula / Calculation
Expectancy = (Win Rate × Average Win) - (Loss Rate × Average Loss)

Profit Factor (strategy_top_profit_factor)

Measures gross capital efficiency:

Formula / Calculation
Profit Factor = Gross Realized Profits / Gross Realized Losses

• < 1.0: Negative expectancy (losing system).
• 1.0 → 1.5: Modest edge; highly vulnerable to spread and commission increases.
• 1.5 → 2.5: Healthy institutional-grade edge.
• > 2.5: Highly efficient system.

Gross Profit vs. Loss by Symbol (strategy_top_win_loss)

Contrasts gross profits (extending right in emerald) against gross losses (extending left in ruby) to expose capital turnover and hidden commission burdens per ticker.

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5. Best Practices: "Trimming the Fat"