The TradeAlign Score is a binary, execution-based metric designed to measure how closely a trade aligns with the trader’s defined playbook. It exists to answer one question: Was this trade executed according to the rules?
Overview
The score evaluates execution quality, not profitability. It is calculated using a yes/no (1 or 0) framework across predefined execution rules. Markets are probabilistic. Outcomes vary. But execution doesn’t have to.Purpose
Measure execution, not outcome
The score ensures trades are evaluated independently of P&L. Discipline is reinforced regardless of win or loss.
Enforce rule integrity
The score acts as a structural safeguard for your playbook. Any deviation is reflected immediately.
Provide clear feedback
Because the score is binary, it removes ambiguity. Each rule is either followed or not followed.
What the TradeAlign Score is not
- It is not a profitability metric
- It is not a grading of trade quality
- It is not subjective
How the score is calculated
The TradeAlign Score is calculated from the Execution Rating of a trade. Each execution rule defined in the playbook is evaluated as:| Result | Points |
|---|---|
| Yes — rule was followed | 1 point |
| No — rule was violated | 0 points |
Example: If a trade has 10 execution rules and 8 are followed, the TradeAlign Score is 80%.
Relationship to execution rating
- Execution Rating = the qualitative assessment of rule adherence
- TradeAlign Score = the quantitative output of that assessment
Interpreting the score
High TradeAlign Score
High TradeAlign Score
Strong rule adherence. Reliable execution data. Strategy performance can be evaluated meaningfully.
Low TradeAlign Score
Low TradeAlign Score
Rule violations present. Behavioral drift. Strategy results become unreliable indicators of effectiveness.