Rating System Research

Interactive visualization of how our multi-factor rating system improves grid trading profitability by 37-66% across 480 backtests

0.886
Correlation with Returns
+37.6%
Return Improvement
78%
High-Rated Win Rate
34%
Low-Rated Win Rate
Note on this figure, added 2026-08-05: The 0.886 correlation (and the return/win-rate figures on this page) were measured under an earlier version of the rating formula (dated 2026-01-29). The formula has since been re-optimized three times; internal walk-forward testing as of 2026-05-13 indicates a higher correlation under the current formula. We are re-running this study under the live formula and will republish updated figures. The qualitative finding — that higher-rated assets have historically outperformed lower-rated ones — is not affected by this note; the exact numbers above should not be cited as describing today's system until the re-run is complete.

1 Correlation Improvement

Key Insight: Iterative optimization improved correlation from 0.700 to 0.886 (+26.6%)

2 Portfolio Performance

Key Insight: High-rated cryptos outperform by 37.6% with 2.3x better Sharpe ratio

3 Exchange Success Rates

Key Insight: Binance.US (85%) vs Coinbase (45%) - 40% swing in success rate!

4 Rating Component Weights

Key Insight: Grid Performance (40%) and risk metrics (45%) drive most of the rating

5 Component Importance (Ablation)

Key Insight: Grid Performance is most critical - removing it drops correlation by 0.089

6 Exchange Fee Breakdown

Key Insight: Coinbase costs 4.4x more than Binance.US per round-trip trade

7 Crypto Returns on Binance.US (All 20)

Excellent (>10%)
Good (5-10%)
Marginal (0-5%)
Loss (<0%)
Key Insight: Top 6 performers (LTC to ETH) are all A or B rated. Bottom 3 (ALGO, VET, NEAR) are D rated.

8 1% Spacing Disaster

Warning: NEVER use 1% spacing. Coinbase: 0/20 profitable, -11.3% average!

9 Rolling Test Results (19 Windows)

Key Insight: LTC wins 89% of test windows vs ALGO at 21%. Consistency validates ratings.

10 Profitability Heatmap: Crypto x Exchange

Key Insight: Green clusters in top-left (good cryptos + low-fee exchanges). Avoid bottom-right red zone.