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MarketQuants Glossary

A quick reference guide to the terminology and metrics used across the platform.

Scores & Ratings​

Composite Score​

Our primary ranking metric. It combines price structure, relative strength, volume analysis, and sector rotation into a single score (0-100).

  • Usage: Used to rank the Leaderboard (Rank #1 = Highest Composite Score).

Diamond Score​

A measure of "Price Health" and structural support across 4 timeframes (5d, 20d, 50d, 200d).

  • Visual: Displayed as 10 diamonds. 10 Gold Diamonds = Perfect structural support.

Efficiency Score​

A measure of how well-capitalized your portfolio is.

  • Calculation: (Number of Meaningful Positions / Total Positions) * 100.
  • Goal: To prevent "diworsification" (holding too many small, meaningless stocks).

Portfolio Ratings​

Undecided​

0 Positions. You haven't started trading yet.

  • Goal: Get Started.

Speculative​

3-8 Positions, often in limited sectors. You are just beginning to build exposure.

  • Goal: Diversify Positions.

Concentrated​

9-17 Positions across 3+ sectors. This is an aggressive, high-conviction structure.

  • Goal: Identify Themes.

Diversified​

18-35 Positions across 3+ sectors. This is the ideal MarketQuants structure, balancing broad exposure with meaningful sizing.

  • Goal: Sustain Structure.

Losing Focus​

36-44 Positions. You are starting to hold too many names, diluting the impact of your best ideas.

  • Goal: Avoid Dilution.

Overbuilt​

45+ Positions. You have essentially recreated an index fund (ETF) with high management overhead.

  • Goal: Restore Balance (Trim the tails).

Conviction Score​

An internal confidence metric used by the system to validate trends. High conviction suggests a trend is more likely to persist.

Interface Elements​

The Beacon​

The toggle switch in the main header that switches between Live Trading (Gold) and Paper Trading (Grey).

The Shells​

The three main circles at the top of the interface:

  1. Stocks: Total value of equity held.
  2. Cash: Tradeable buying power.
  3. Balance: Total Account Value (Stocks + Cash).

Leaderboard Tile​

The card representation of a stock on the Leaderboard. Includes price, rank, diamond score, and 1-year high data.

Trading Terms​

Meaningful Position​

Any position that is large enough to impact your portfolio's performance. In the app, these are highlighted in Gold in your position list. Small positions are shown in White.

Pilot Position​

A small initial entry (e.g., 20% of target size) taken to "test" a trade before scaling in.

Scale In​

The act of adding more capital to a winning trade. MarketQuants encourages scaling into strength.

Trim​

The act of selling a portion of a position to take profits or reduce risk, without closing the entire trade.

Market Context​

S&P 500 Universe​

The list of ~500 largest US companies. MarketQuants focuses exclusively on this universe to ensure liquidity and stability.

Sector Rotation​

The movement of money from one industry (e.g., Tech) to another (e.g., Energy). Our Composite Score adjusts for this automatically.