All Posts (Page 19)

The Stability Score in darwintIQ assesses how evenly distributed a trading model's returns are across the evaluation period, rather than whether returns exist in aggregate. A high Stability Score indicates consistent contribution throughout the window; a low score reveals that performance may be concentrated in a narrow portion of the period — a form of fragility that headline metrics can conceal.

The SupRes Position Manager is one of the position management components available in darwintIQ trading models. Rather than applying fixed pip distances or volatility-scaled rules, it uses identified support and resistance levels to determine where trades should exit — aligning trade management with the structural logic of the market itself.

Drawdown in trading measures the decline in equity from a peak to a subsequent trough, expressed as a percentage. It is one of the most direct measures of the risk a trading model takes to generate its returns. In darwintIQ, drawdown is tracked continuously as part of the rolling evaluation window and contributes to the broader risk-adjusted picture of a model's behaviour.

Risk/reward ratio compares the potential profit of a trade to the potential loss. It is one of the most commonly cited metrics in trading — and one of the most frequently misunderstood. In darwintIQ, risk/reward is one of several metrics evaluated in context with win rate, Expected Value, and drawdown rather than in isolation.

Curve fitting occurs when a trading strategy is optimised so thoroughly on historical data that it captures noise rather than genuine patterns. The result looks compelling in backtesting and fails in live trading. Understanding how curve fitting happens — and why it is so easy to do by accident — is essential for anyone building or evaluating systematic trading models.