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Discover the Algohubb Rating: How We Evaluate Strategies

June 24, 2024

CREATED BY

MICHAŁ ZAREMBA

Algohubb Rating is a measure designed to evaluate individual strategies objectively. This article provides further details on this assessment tool.

Discover the Algohubb Rating: How We Evaluate Strategies

How the Algohubb Rating is calculated?

Algohubb Rating is a measure designed to evaluate individual strategies objectively.

For each strategy, we assess the following criteria:

Average monthly profit (MM$)
Return/Drawdown ratio (MM%)
Maximum percentage Open Drawdown (MM%)
Winrate
Exposure
Robustness - evaluation based on the number of transactions appropriate for the strategy type and the strategy's resilience to changing conditions.

Each criterion is assigned a weight in our overall evaluation. The sum of weighted results contributes to the Algohubb Rating.

Please note that as backtests are updated based on the latest data, the rating of a particular strategy may change over time.

To maintain objectivity in the evaluation, we also reserve the right to develop the definition of the rating by changing the weights of individual criteria and adding or replacing current criteria.

We have developed the Algohubb Rating to support you in choosing a strategy. However, many other measures can be used for this purpose. These include, among others: Ret/DD Ratio, Profit Factor, Sharpe Ratio, SQN Score, etc. The selected measures are available in the SQX, Algocloud strategy results. An easy-to-understand measure is the Ret/DD Ratio, which accurately measures the risk vs. return.

BEST STRATEGIES

average rating is 4.7 out of 5

Volta Strategy

The Volta strategy uses a volume-based indicator as its foundation, which distinguishes the strategy profile from most typical reversal strategies. It is a mean reversion strategy that waits for a quick pullback in an uptrend.

average rating is 4.6 out of 5

Stock Monthly Mover Strategy

The strategy is based on a monthly pattern that has been occurring in stocks for several decades. A great advantage of it is the low capital commitment (on average around 13% of real exposure), which allows for simultaneous use of capital in other strategies.

average rating is 4.5 out of 5

R2 Turbo Strategy

The R2 Turbo strategy draws inspiration from Larry Connors' experiences. While it is based on the Relative Strength Index (RSI) indicator, it includes a specific way of using this indicator and filters that enhance its effectiveness. It is a trend reversal strategy that waits for a specific pullback in an uptrend.

average rating is 4.5 out of 5

Triple B Strategy

The Triple B strategy combines three indicators that support each other. The basis of the strategy is the %B indicator based on Bollinger Bands.

average rating is 4.5 out of 5

Emerging Monthly Mover PRO Strategy

There is a PRO version of the Emerging Monthly Mover FREE strategy. Be sure to familiarize yourself with this strategy before moving on to analyzing the PRO version.

average rating is 4.5 out of 5

Week Explorer Strategy

For last 40 years, the best day of the week on the US stock market has been Tuesday. The next day with the highest return is Wednesday. We present a strategy that skillfully exploits this market behavior by opening positions only on Mondays and cashing in profits in almost 70% of cases over the following days.

average rating is 4.4 out of 5

IBS Master Strategy

IBS Master draws inspiration from the experiences of Linda Raschke described in the book Street Smarts: High Probability Short-Term Trading.

average rating is 4.4 out of 5

RSI Range Rider Strategy

If J. Welles Wilder knew that the indicator he described in 1978 was still performing so well, he would be very proud. It is a matter of matching a powerful indicator to the nature of the instrument, that is US stocks.

average rating is 4.3 out of 5

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KO Christmas Rally Strategy

The seasonal holiday pattern on Coca-Cola is one fantastic example of how seasons affect stocks. The pattern has a logical justification, which is the association of the brand with holidays built over decades. This consequently influenced consumer and investor behavior before this period.

average rating is 4.3 out of 5

Momentum IBS 3xETF Strategy

Momentum IBS focuses on three ETFs, rarely engages capital, but is a valuable addition to most portfolios due to the stability of profits and excellent risk-reward ratio. It offers a 71% win rate and a different profile compared to typical reversal strategies.

average rating is 4.2 out of 5

Gold Monthly Miner Strategy

The strategies from the Monthly Mover series utilize the best periods of the month for trading selected instruments. This time, I present a strategy exploring such patterns in the price of gold.

average rating is 4.2 out of 5

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BKNG Winter Travel Strategy

Winter is one of the two best seasons for Booking.com. This is also true for the company's stock. The winter strategy will show you how holding the stock for just 25 days in January and February could yield results similar to holding the index for the entire year.