MetenaCrypto strategy health score explained
A number out of 100 that sums up the strength of your strategy: thesis, risk, discipline and money management. It breaks down pillar by pillar. It is not a price forecast.
Definition
The health score rates the strategy, not the market. It checks whether the thesis is clear and testable, whether risk is capped, whether the rules are followed and whether position sizes match what you say you accept.
It is read pillar by pillar. An overall 70 can hide excellent money management and a vague thesis: the weakest pillar tells you what to work on.
A high score says nothing about tomorrow’s price. A sound strategy can go through a year of decline; it is built so that the decline does not make you give up on everything.
Worked example
A BTC DCA strategy with a written thesis, a 10% reserve and no invalidation condition will get a good “money management” pillar and an incomplete “thesis” pillar. Adding an invalidation condition raises that pillar without changing a single purchase.
In Metena
The health score is calculated on your actual strategy and broken down pillar by pillar, with what raises or lowers each one.
Notify me at launchRelated terms
- Thesis
- Your reason for investing, written down: why you buy, over what horizon, and what has to happen for you to be right. A clear thesis stops you improvising when the market moves.
- Constitution
- In Metena, all your rules written in cold blood: thesis, action rules, invalidation conditions and money management. You reread it the day sticking to it gets hard.
- Money management
- Managing the size of your positions and your exposure: how much to risk per holding, what reserve to keep, which limits never to cross.
- Invalidation condition
- The precise fact that would prove your thesis wrong and trigger your exit, for example “I exit if BTC closes two weeks below $20,000”. Writing it in advance stops you rationalizing it later.
Put these ideas into practice.
Write your strategy in a few minutes: Metena analyses it when you ask and explains each term in context.
Notify me at launchEducational content. It is not investment advice. Crypto-assets carry a high risk that can go as far as the total loss of capital.