The risk management score
What this score measures about your risk management, and how to improve it.
By NKTrades
The risk management score is a Premium widget on Trading → Overview. It's not about how much profit you make, but about how you handle loss.
The five axes
Stop usage: whether you consistently trade with a stop.
R consistency: how stable your risk per trade is, rather than small one time and large the next.
Loss control: how your losing trades compare to 1R: a loss around 1R scores full, a loss of 3R or more scores zero.
Recovery: how you bounce back from a drawdown; recovering three times the drawdown scores full.
Reward/risk: your average winner expressed in R; an average winner of 2R scores full.
Each axis is scored 0 to 100, and the total is their average.
When an axis says nothing
An axis without enough data doesn't show a 0, it shows a dash: there's simply nothing to judge yet. The radar chart with all five axes only appears once every axis actually has data: otherwise an empty axis would pull a shape toward the middle that means nothing.
The score judges how you manage loss, not whether you end up profitable. A losing period with a tight stop and a small average loss still scores well.
How to improve it
Trade with a stop consistently, keep your risk per trade roughly equal instead of letting it vary by feel, don't let a loss run well past your usual risk, and build back up steadily after a drawdown instead of sizing up to win it back. These are the same habits you can lock in as a rule in your game plan. See Writing out your game plan.
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