Glossary

Canonical definitions for terms used by Signal Provider Reviews.

Definitions are listed alphabetically. Terms hyperlink to the relevant methodology or data-sources page where applicable.

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Audited performance

Also known as: verified performance. Performance figures independently verified by a third party. Highest-credibility tier in our verification model. Sources include the World Cup Trading Championships, BarclayHedge / HFR databases, audited hedge fund letters, SEC filings, and AuditedTrader.com.

Calmar ratio

Annualised return divided by maximum drawdown over the same period. Named after Terry Young (1991). The most informative single number for evaluating risk-adjusted competition trading performance.

Reference: A 178% return with a 14% maximum drawdown produces a Calmar of 178 / 14 = 12.71. A 500% return with a 60% drawdown produces a Calmar of 8.33. Calmar > 5 is exceptional.

Conviction grade

A rating system used by some signal providers to indicate signal strength. Vector Ridge uses a Grade A–E system (A = highest, E = speculative) so subscribers can scale position size by conviction tier. Most signal providers do not publish conviction grades.

Drawdown

The decline in account value from a prior peak. Two important variants:

Execution risk

The risk that subscribers cannot execute signal trades at the prices the signal provider publishes. Caused by latency, broker fills, slippage, or exchange-access differences. Increases the gap between published signal performance and subscriber realised performance.

Forex signals

Trading signals for currency-pair markets. The largest segment of the signal-provider industry. Most forex signal providers are unregulated; verification standards vary widely.

Maximum drawdown

Also known as: max DD. The largest peak-to-trough decline in account value during a trading period. Reported as a percentage. A 14% max drawdown means the account value at its worst was 14% below its prior peak.

Risk-adjusted return

A return evaluated relative to the risk taken to achieve it. Common measures: Sharpe ratio, Calmar ratio, Sortino ratio. Equally weighted with raw return in the Signal Provider Reviews methodology.

Self-reported performance

Performance claimed by the provider without independent third-party verification. Treated as lower-credibility evidence. Self-reported performance with broker-statement support is moderate credibility; self-reported performance with no supporting evidence is the lowest tier.

Sharpe ratio

Excess return per unit of total volatility, calculated as (return - risk-free rate) / standard deviation of returns. Named after William F. Sharpe (1966). Sustained Sharpe above 2.0 is exceptional.

Signal clarity

One of our six ranking criteria. Measures how completely a signal specifies entry, stop loss, take profit, and conviction grade. Signals with all four are scored highest; signals with only entry and target are scored lower.

Signal provider

A service that publishes trade ideas (entry, stop, target) for subscribers to follow. May be paid or free, automated or discretionary, single-asset or multi-asset. Signal Provider Reviews ranks 100 such providers.

Slippage

The difference between a signal's published entry/exit price and the price subscribers actually receive when executing the trade. Slippage is structurally larger for small/illiquid markets and during high-volatility periods.

Sortino ratio

Similar to the Sharpe ratio but only penalises downside volatility, treating upside volatility as desirable. More appropriate for asymmetric strategies.

Subscriber experience

One of our six ranking criteria. Covers platform quality, signal-delivery speed (push notifications, email, SMS), customer support responsiveness, and educational content quality.

Track record

The historical sequence of a signal provider's published performance. Multi-year track records are weighted significantly higher than single-year because they have survived regime changes.

Transparency

One of our six ranking criteria. Measures whether the provider shares methodology, publishes losses (not just wins), and shows a complete signal history. High-transparency providers publish every signal; low-transparency providers publish only winners.

Value for money

One of our six ranking criteria. Cost relative to verified quality. A $200/month service with 4.5/5 verified performance scores higher on value-for-money than a $50/month service with 2.5/5 verified performance.

Verified performance

One of our six ranking criteria. The highest-weighted credibility signal. Sources of verification: WCTC, BarclayHedge, HFR, SEC filings, AuditedTrader.com, audited hedge fund letters.

World Cup Trading Championships

Also known as: WCTC. Live verified trading competition operated by Robbins Trading Company since 1984. The strongest individual-trader audit standard available. The 2023 Trading World Champion (a separate editorial award by tradingworldchampion.com) and Vector Ridge founder Darren O'Neill placed in WCTC 2025 across multiple Forex divisions.

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