TRL is an indicator that represents how well strategy providers manage their trading risks. It is calculated by the average of two values: safety score and value at risk (VaR) score. It is based on your performance and trading activity in the last 12 months and represents a historical record of your reliability. Investors are more likely to invest with strategy providers who have high TRLs.
How to find your trading reliability level:
- Log into your Personal Area.
- Open the Social Trading tab.
- Head to Your strategies tab.
- Your trading reliability level is shown below your bio.
- Click on the > icon to view your trading reliability level breakdown.
The breakdown of the TRL shows the safety score and VaR score, as well as a customisable historical chart of the trading reliability level. You can customize the chart by time frame, with results calculated daily.
The safety score shows how well you avoid losing capital in a strategy, such as when the strategy’s equity drops to zero or below during trading. The higher the score, the less likely it has been that you have lost all of the strategy’s capital.
The VaR (value at risk) score shows how well you have managed drawdown, a single measurement of loss from peak to trough. The higher the VaR score, the less share of capital could be lost by the investors in worst-case scenarios.
More about the trading reliability level (TRL)
The TRL is depicted as a number between 0 and 100, assigned to a strategy provider. The higher the level the more reliable the trading performance of that strategy provider has been.
The trading reliability level (TRL) is calculated and shown:
- To the strategy provider: The day after a strategy provider opens the first trade on any strategy. They will also be able to see the date when the TRL will be visible to investors.
- To the investors: visibility depends on the TRL's significance.
Here’s how the breakdown of the levels:
0-40: Low score
41-70: Medium score
71-100: High score
Important: The trading reliability level is based on historic data and does not predict future performance.
Trading reliability level (TRL) Significance
When the strategy provider’s TRL is significant, it becomes visible to investors on the platform as well as on the Social Trading app.
TRL significance is based on two factors:
- Extent score: This score shows trading experience. It takes into account leverage, the duration of the strategy provider’s opened orders, and total trading volume.
- Trading days: The number of days with trading activity.
Note: When the strategy provider reaches an Extent score = 10 and Trading days = 10, their TRL becomes significant.