Reference

Glossary

Key terms and definitions across Decision Infrastructure and trading.

A B C D E F G H I K L M N O P Q R S T V W

A

Allocation IntelligenceDecision Infrastructure: Decision systems that prioritize qualified opportunities using evidence, environmental context, and continuously improving models.
ATR (Average True Range)Technical Indicators: A measure of market volatility based on the average range of price bars. Used to set adaptive stop losses and trailing stop widths that adjust to current market conditions rather than using fixed percentages.
ADX (Average Directional Index)Technical Indicators: Measures trend strength on a 0–100 scale without indicating direction. Values above 25 suggest a strong trend; below 20 suggest ranging conditions. Used to filter entries by trend environment.
Allocation IntelligenceQualification & Intelligence: An advisory system that ranks qualified strategies for capital deployment priority. Produces increase/hold/avoid recommendations based on regime performance, lifecycle health, and diversity contribution.

B

Behavioral IntelligenceDecision Infrastructure: The characterization and understanding of how decisions behave across different environments, conditions, and stress scenarios.
BreakevenRisk & Exit Mechanics: Moving the stop loss to the entry price after a trade reaches a specified profit threshold. Once activated, the trade can no longer lose money (excluding fees and slippage).
Bars-to-MFETrade Analytics: The number of candle periods between trade entry and the point of maximum favorable excursion. Indicates how quickly a trade reaches its peak profit. Short bars-to-MFE suggests fast momentum; long suggests slow trend development.
Bollinger BandsTechnical Indicators: A volatility indicator consisting of a middle band (SMA) and upper/lower bands at standard deviations from the mean. Price touching the lower band in ranging markets can signal mean-reversion entry opportunities.
Breadth ScoreMarket Regime: A component of regime classification measuring multi-asset directional alignment. High breadth means most assets are moving in the same direction, suggesting a broad market trend.
BreakoutStrategy Families: A strategy family that enters when price breaks through established support or resistance levels. Works well in trending and volatile regimes but poorly in choppy markets where false breakouts dominate.
BacktestValidation & Backtest: Running a strategy against historical price data to evaluate how it would have performed. Produces metrics like return, Sharpe, drawdown, and trade count. The first validation stage.
Behavioral IntelligenceQualification & Intelligence: A classification system that observes how a strategy actually trades and categorizes it into one of eight behavioral families (e.g., trend_following, scalp, mean_reversion). Compares observed behavior against intended family to detect mismatches.

C

Composite ScorePerformance Metrics: A 0–100 quality metric that combines Sharpe ratio (40%), return (30%), and drawdown (30%) into a single score. Used throughout the platform to rank and evaluate strategies.
CooldownRisk & Exit Mechanics: A minimum waiting period between trades. Prevents re-entry immediately after an exit, reducing overtrading in choppy conditions.
Capture RatioTrade Analytics: The percentage of available price movement actually captured by a trade. Calculated as realized return divided by MFE. A 60% capture ratio means the trade exited at 60% of its best potential.
CCI (Commodity Channel Index)Technical Indicators: An oscillator measuring the deviation of price from its statistical mean. Values above +100 indicate overbought; below -100 indicate oversold. Useful for identifying cyclical price patterns.
Candle / CandlestickExecution: A representation of price action over a specific time period showing open, high, low, and close (OHLC) values. The fundamental unit of price data used in backtests and live tick evaluation.

D

Decision InfrastructureDecision Infrastructure: The collection of systems, processes, and intelligence layers that transform exploration into qualified execution through evidence, validation, and continuous learning.
Decision LifecycleDecision Infrastructure: The complete journey of a decision from initial possibility through generation, validation, simulation, qualification, allocation, execution, and learning.
Decision QualityDecision Infrastructure: A measure of the quality of a decision process, evaluated independently from the outcome it produces.
DrawdownPerformance Metrics: The peak-to-trough decline in portfolio value, expressed as a percentage. Maximum drawdown measures the worst such decline. Orqis uses a 20% drawdown circuit breaker for risk management and a 30% limit for qualification.
Donchian ChannelsTechnical Indicators: A channel indicator formed by the highest high and lowest low over a lookback period. Breakouts above the upper channel or below the lower channel signal momentum entries.
DCA (Dollar Cost Averaging)Strategy Families: A strategy family that splits a position into multiple entries at predetermined intervals or price levels, reducing the impact of entry timing on overall performance.
DegradationQualification & Intelligence: A flag indicating a strategy's performance has deteriorated significantly. High-severity degradation blocks live deployment qualification and can trigger automated responses.
Deployed CapitalCapital & Portfolio: The total real capital currently allocated across all live trading strategies. The sum of individual live account deposited amounts.

E

Execution EvidenceDecision Infrastructure: Evidence generated through active and completed execution, encompassing both outcome-oriented Performance Evidence (return, Sharpe, win rate) and path-oriented Behavioral Evidence (MAE/MFE distributions, holding-duration patterns, recovery characteristics). Enables contextualizing active decisions against historical cohorts without implying prediction.
EvidenceDecision Infrastructure: Structured observations gathered through validation, simulation, and outcome analysis that inform qualification and allocation decisions.
ExecutionDecision Infrastructure: The deployment of resources in response to a qualified decision, conducted with accountability and continuous monitoring.
Equity CurvePerformance Metrics: A chart showing the growth of portfolio value over time. Rising curves indicate profitability; steep drops indicate drawdowns. Used to visualize strategy and portfolio performance.
ExposureRisk & Exit Mechanics: The total notional value of all open positions relative to portfolio equity. Orqis caps aggregate exposure at 1.5x portfolio equity to prevent over-concentration.
EMA (Exponential Moving Average)Technical Indicators: A moving average that gives more weight to recent prices. Used in fast/slow pairs for trend detection (e.g., fast EMA crossing above slow EMA signals bullish momentum).

F

Fee EfficiencyValidation & Backtest: A multiplier (0.70–1.00) that adjusts the composite score based on whether average trade return exceeds the round-trip fee cost (0.3% for perps). Strategies that barely cover fees are penalized.
Fee CrystallizationFees & Economics: The monthly process of calculating performance fees owed. Compares current Hyperliquid equity against the high water mark, adjusting for deposits and withdrawals during the period.
Fee ViabilityFees & Economics: Whether a strategy's average trade return exceeds the round-trip trading cost (approximately 0.3% for perps including exchange fees and slippage). Fee-unviable strategies destroy capital through friction.

G

Grid TradingStrategy Families: A strategy family that places buy and sell orders at regular intervals above and below a set price, profiting from price oscillation. Works best in ranging markets.

H

Hold DurationTrade Analytics: The average time positions are held open. Key to behavioral classification — scalping holds for hours, trend following holds for days. Influences which exit mechanics are most effective.
High Water Mark (HWM)Capital & Portfolio: The highest portfolio equity value achieved, used as the baseline for performance fee calculations. Fees are only charged on new profits above the previous HWM, preventing double-charging on recovered losses.

I

In-Sample (IS)Validation & Backtest: The first 70% of backtest data used for strategy evaluation. Performance on in-sample data establishes baseline metrics but may overfit to historical conditions.
Isolated CapitalCapital & Portfolio: Each strategy bot operates with its own independent capital allocation. No shared pool — one strategy's drawdown cannot affect another. The foundation of Orqis portfolio isolation.

K

Kill SwitchRisk & Exit Mechanics: An emergency control that immediately closes all exchange positions and revokes trading wallet access. Used when manual intervention is needed to halt all live trading activity.
Keltner ChannelsTechnical Indicators: Volatility-based channels using EMA and ATR. Similar to Bollinger Bands but uses ATR instead of standard deviation, making them smoother and less reactive to single outlier bars.
KAMA (Kaufman Adaptive Moving Average)Technical Indicators: A moving average that adapts its smoothing based on market noise. Moves quickly when price is trending cleanly and slowly during choppy conditions, reducing false signals.

L

Learning LoopDecision Infrastructure: The feedback cycle through which every execution outcome — successful or not — improves future decision-making across the entire lifecycle.
LeverageRisk & Exit Mechanics: A multiplier that amplifies both gains and losses by borrowing capital. A 2x leverage means $100 controls $200 of exposure. Higher leverage increases risk. Orqis defaults to 2x and enforces per-strategy limits.
Live TradingExecution: Trading with real capital on an exchange. Requires qualification, regime proof, and passing all safety gates. Subject to risk guards, regime gating, and kill switch controls.
Long PositionExecution: A trade that profits when the price goes up. You buy first and sell later. The standard directional bet in trending-up markets.

M

MAE (Maximum Adverse Excursion)Trade Analytics: The worst drawdown experienced by a trade during its lifetime, measured from entry. Reveals how much pain a trade inflicts before reaching its outcome. Used in exit quality analysis and execution evidence.
MFE (Maximum Favorable Excursion)Trade Analytics: The best unrealized profit reached by a trade during its lifetime, measured from entry. Shows how much opportunity was available. Used to calibrate take profit levels and trailing stop activation.
MACD (Moving Average Convergence Divergence)Technical Indicators: A trend-following momentum indicator showing the relationship between two EMAs. The MACD line crossing above the signal line is a bullish signal. Also generates histogram values showing momentum strength.
Market RegimeMarket Regime: A classification of current market conditions into one of six states: Trending Up, Trending Down, Ranging, Choppy, Volatile, or Low Volatility. Regime determines which strategy families are most effective.
MomentumStrategy Families: A strategy family that trades in the direction of established price trends, expecting continuation. Scores highest in trending regimes. Typically uses EMA crossovers or RSI breakout signals.
Mean ReversionStrategy Families: A strategy family that bets on prices returning to their statistical mean after deviating. Performs best in ranging and low-volatility markets. Often uses Bollinger Bands or RSI extremes.
MarginCapital & Portfolio: The collateral required to maintain leveraged positions. Orqis enforces an 80% margin buffer, meaning positions can only use up to 80% of available margin to maintain a safety cushion.

N

Notional CapitalCapital & Portfolio: The simulated capital amount allocated to a paper trading strategy, typically $10,000. Provides a realistic testing environment without real money at risk.

O

Outcome AttributionDecision Infrastructure: The decomposition of decision outcomes into contributing factors to understand why decisions succeeded or failed.
OBV (On-Balance Volume)Technical Indicators: A cumulative volume indicator that adds volume on up days and subtracts on down days. Rising OBV confirms price trends; divergence between OBV and price can signal potential reversals.
Out-of-Sample (OOS)Validation & Backtest: The last 30% of backtest data held back from training. Performance on unseen data tests whether the strategy generalizes. Significant IS-to-OOS degradation suggests overfitting.
OverfittingValidation & Backtest: When a strategy performs well on historical data but poorly on new data because it has been optimized to past noise rather than genuine patterns. Detected through IS/OOS degradation comparison.

P

PnL (Profit and Loss)Performance Metrics: The net financial gain or loss from trading activity. Orqis tracks cumulative PnL (total over time), realized PnL (from closed positions), and unrealized PnL (from open positions).
Profit FactorPerformance Metrics: The ratio of gross profits to gross losses. A profit factor above 1.0 means a strategy is profitable overall. Capped at 10 in displays. A key measure of edge consistency.
Payoff RatioPerformance Metrics: The ratio of average winning trade to average losing trade. A payoff ratio of 2.0 means winners are twice as large as losers. Combined with win rate, this determines overall profitability.
Partial Take ProfitRisk & Exit Mechanics: Closing a portion of a position at the first profit target while letting the remainder run. Reduces risk while maintaining exposure to further upside. Tracked via remaining_quantity.
Position SizeRisk & Exit Mechanics: The amount of capital allocated to a single trade, typically expressed as a percentage of portfolio equity. Orqis enforces a maximum of 20% per position.
Paper TradingExecution: Real-time strategy simulation using live market data but without real capital at risk. Strategies must prove themselves in paper trading before qualifying for live deployment.
Perpetual Futures (Perps)Execution: Derivative contracts with no expiry date that track the underlying asset price. Allow leverage and short selling. The primary instrument type on Hyperliquid used by Orqis strategies.

Q

QualificationDecision Infrastructure: The process by which an idea earns the right to real-world execution through structured evidence gathering, validation, and simulation.
Qualified ExecutionDecision Infrastructure: The principle that execution should be earned through evidence rather than assumed through generation.
QualificationQualification & Intelligence: The multi-criteria gate determining whether a paper-trading strategy earns the right to deploy real capital. Requires passing 10 global criteria and 4 regime-specific criteria.

R

ROI (Return on Investment)Performance Metrics: The percentage gain or loss relative to initial capital. Positive ROI is required for qualification. Displayed on strategy cards and portfolio summaries.
RSI (Relative Strength Index)Technical Indicators: A momentum oscillator measuring the speed and magnitude of price changes on a 0–100 scale. Values above 70 suggest overbought conditions; below 30 suggest oversold. One of the most commonly used entry signal indicators.
Regime FitMarket Regime: A compatibility score (0–3) measuring how well a strategy family performs in a given regime. A fit of 3 means the family is highly suited; 0 means it is unsuited.
Regime ProofMarket Regime: Evidence that a strategy performs well in a specific regime, requiring 3+ trades with 40%+ win rate and positive PnL in that regime. Required for live deployment eligibility.
RobustnessValidation & Backtest: A measure of how consistently a strategy performs across different time periods and market conditions. Labeled as robust, acceptable, weak, or failed_oos based on walk-forward and OOS analysis.
Round-Trip FeesFees & Economics: The total cost of opening and closing a position, including exchange taker fees (0.045% perps, 0.070% spot) and modeled slippage (0.05% per side). Approximately 0.19% for perps, 0.22% for spot.

S

SimulationDecision Infrastructure: Controlled environments where decisions prove their behavior before capital exposure, enabling evidence gathering without real-world risk.
Sharpe RatioPerformance Metrics: A measure of risk-adjusted return. Calculated as the annualized mean of daily log returns divided by their standard deviation. A higher Sharpe indicates better return per unit of risk. Orqis requires a minimum Sharpe of 0.3 for validation and weights it at 40% in the composite score.
Stop LossRisk & Exit Mechanics: A predefined price level at which a losing position is automatically closed to limit downside. Evaluated against intra-candle extremes (high/low) and filled at the stop level.
SlippageRisk & Exit Mechanics: The difference between expected and actual trade execution price, caused by market impact and order book depth. Orqis models 0.05% slippage per side in backtests for realism.
Stochastic OscillatorTechnical Indicators: A momentum indicator comparing a closing price to its price range over a period. The %K line and %D signal line generate overbought (above 80) and oversold (below 20) signals.
SuperTrendTechnical Indicators: A trend-following overlay indicator based on ATR. Plots above price during downtrends and below during uptrends. Flips provide clear trend reversal signals.
Sentiment ScoreMarket Regime: A component of regime classification derived from the Fear & Greed Index. Extreme fear or greed readings inform regime classification and can signal potential reversals.
Signal StrengthMarket Regime: A 0.1–0.85 confidence measure in the current regime classification. Higher values indicate stronger conviction in the labeled regime. Used in regime gating decisions.
ScalpingStrategy Families: A strategy family targeting small, frequent profits with ultra-short hold times (under 4 hours). Requires high win rates to overcome trading fees. Sensitive to fee viability thresholds.
Strategy Intelligence ScoreQualification & Intelligence: A composite 0–100 score across six dimensions: backtest quality (25%), robustness (20%), paper performance (20%), risk efficiency (15%), behavioral consistency (10%), and regime alignment (10%). Updated every 6 hours.
Stability ScoreQualification & Intelligence: A 0–100 metric measuring how consistently a strategy's behavioral classification remains stable over time. High stability indicates reliable, predictable behavior patterns.
Short PositionExecution: A trade that profits when the price goes down. You sell first and buy back later at a lower price. Available on perpetual futures. Used in trending-down or mean-reversion strategies.

T

Take ProfitRisk & Exit Mechanics: A predefined price level at which a winning position is automatically closed to lock in gains. Evaluated against intra-candle extremes and filled at the target level.
Trailing StopRisk & Exit Mechanics: A dynamic stop loss that follows the price as it moves in your favor, locking in gains while allowing the trade to run. The trailing width determines how far behind the high-water mark the stop sits.
Time DecayRisk & Exit Mechanics: An exit mechanism that closes positions after a maximum number of bars (candles) if the position is negative and breakeven was never activated. Catches positions slowly bleeding toward the stop loss.
Trend ScoreMarket Regime: A component of regime classification derived from BTC price action and RSI. Measures the directional strength and persistence of the current market trend.
Trend FollowingStrategy Families: A strategy family with long holding periods (24h+), asymmetric win/loss ratios, and patient entries. Designed to capture large moves. Lower win rate but larger average wins.
TimeframeExecution: The duration of each candle in a strategy's analysis (e.g., 15m, 1h, 4h). Shorter timeframes generate more signals but higher noise; longer timeframes capture larger moves but fewer trades.
Taker FeesFees & Economics: Exchange fees charged when a trade is executed at market price (taking liquidity from the order book). Hyperliquid charges 0.045% for perpetual futures and 0.070% for spot trades.

V

ValidationDecision Infrastructure: The systematic measurement of a decision's evidence against objective criteria to determine whether it warrants further investment.
VWAP (Volume Weighted Average Price)Technical Indicators: The average price weighted by trading volume. Represents the fair value benchmark for the trading session. Price above VWAP suggests bullish sentiment; below suggests bearish.
Volatility ScoreMarket Regime: A component of regime classification based on 30-day realized volatility and 24-hour price movement. High scores indicate volatile conditions; low scores indicate calm markets.
Volatility CaptureStrategy Families: A strategy family designed to profit from expanded price ranges. Returns increase with ATR delta. Suited for volatile regimes.

W

Win RatePerformance Metrics: The percentage of trades that close profitably. Orqis tracks this per strategy and per regime. A minimum 45% win rate is required for qualification.
Walk-Forward ValidationValidation & Backtest: Testing a strategy across three sequential, non-overlapping time windows. Evaluates consistency over different market periods rather than a single historical segment.

99 terms