PTQI — Pre-Trade Quality Index¶

The Pre-Trade Quality Index (PTQI) is Finvee's composite score for rating the overall quality of a potential trade at a specific point in time. It combines four tiers of analysis — market health, sector/theme context, stock technicals, and strategy fit — into a single 0–100 score with an associated label and action recommendation.

Why PTQI exists¶

Raw P&L is a poor signal for whether a trade was a good decision. A lucky trade in terrible conditions can produce profit; a well-reasoned trade in a bad market can produce a loss. PTQI is a pre-decision quality gate — it tells you, before you trade, whether the conditions justify entering a position at all.

It is not a buy signal. It is a structured quality filter that forces you to reckon with market conditions, sector momentum, stock setup quality, and your own strategy fit — simultaneously and objectively.

Score labels¶

The four tiers¶

PTQI is a weighted composite of four independent tier scores, each rated 0–100:

PTQI = 0.20 × Market Health
     + 0.25 × Context Score
     + 0.35 × Stock Score
     + 0.20 × Strategy Fit

Tier I — Market Health (weight: 20%)¶

Evaluates the current macro market regime. This is computed daily from the MarketHealthSnapshot and produces both a numeric score and a regime label:

The market regime also determines whether hard gate caps are applied (see below).

Tier II — Context Score (weight: 25%)¶

Evaluates the sector and theme context surrounding the individual stock:

• Sector relative strength trend — is the stock's sector gaining or losing momentum against the broad market?
• Theme alignment — does the stock belong to themes that are currently in favour?

A strong stock in a weak or declining sector is a significantly lower quality setup than the same stock in a strong, leading sector.

Tier III — Stock Score (weight: 35%)¶

The largest-weighted tier evaluates the individual asset's technical quality:

• Stage — where is the stock in its market cycle (Stage 1 basing, Stage 2 advancing, Stage 3 topping, Stage 4 declining)?
• Breakout Ratio — how closely does the asset resemble a Weinstein Stage 2 breakout setup? (full detail)
• Mansfield Relative Strength — is the stock outperforming the market on a weekly basis?

This is the tier most directly influenced by the Breakout Ratio indicator.

Tier IV — Strategy Fit (weight: 20%)¶

Evaluates whether the current opportunity matches your configured strategy:

• Regime alignment — does your playbook archetype (Breakout, Momentum, Swing, etc.) work in the current market regime?
• Archetype fit — does the stock's setup match the entry pattern your strategy is built around?

This tier is personalised — the same stock can produce a different Tier IV score for different users depending on their playbook configuration.

Hard gate caps¶

Regardless of the weighted composite score, hard gate caps are applied based on the current market regime. This prevents high stock-quality scores from overriding a dangerous macro environment:

Action layer¶

Based on the final (capped) PTQI score and the current regime risk, the system derives a System Action and a Position Size Factor:

The Position Size Factor is a guide — it represents the percentage of your normal position size that the system considers appropriate given current conditions. Your final sizing decision always remains yours.

Archetype constraints¶

When you have a Playbook configured with a defined strategy archetype (e.g. Breakout, Trend Following, Momentum), the system evaluates whether that archetype is allowed or blocked in the current regime:

These constraints can be overridden by your playbook's configured regime_preferences.

Where PTQI appears in the interface¶

• Playbook → PTQI Ranking — all open positions scored and ranked by current PTQI. Use this daily to know which positions are still aligned and which need review.
• Trade Intent dialog — PTQI is computed and displayed when you log a new trade intent, giving you an objective quality read before you commit.
• Position cards — each open position shows its current PTQI label and score, updated daily.
• Decision Audit — the PTQI score at the time of entry (ptqi_score_at_entry) is stored on the DecisionAudit record and used as a reference point for evaluating how well-timed the entry was.

Related¶

• Breakout Ratio
• Decisioning & Playbook overview