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Introducing the Z-Score

A detailed guide to understanding the Z-Score

Updated over 2 months ago

The Z-Score is one of our most advanced metrics for assessing the quality of services within the platform. Below, we will review a basic understanding of how the Z-Score works and how to take advantage of this new technology!

What is the Z-Score?

After navigating to the marketplace, you may notice new metrics, as shown in the picture below:

The number beside each service profile picture is what we call the Z-Score. It utilizes an AI engine to evaluate and assign a point value ranging from 0 (minimum) to 100 (maximum). This score is calculated based on four different metrics, in which the data is taken from the last 365 days of the service.

Let’s take a look at the four main categories that the Z-Score takes into consideration:

Category

Description

Max number of points that can be obtained

Profits

We measure information regarding the profitability of the service.

27

Risk

We measure information regarding the risk level of the service.

30

Service Management

We measure the management of this service.

25

Balance

If the service has balanced the first three categories, it provides a boost in the score.

18

After clicking on a service’s Z-Score, you will see that each of the four main categories has its sub-categories.

These broken down sub-categories all have their score and are determined through a system of levels. For example, a service with 50% of profits will receive more points than one with only 10% in the same period.

For more detailed information on how these individual metrics and levels are calculated, check out this article here: Z-Score Metrics.


Take Advantage of the Z-Score

Now that we understand the Z-Score let’s see how we can use it to create a more substantial investment portfolio.

It is important to remember that any investment has risks, and in the end, it is up to you to do your own research and choose your services carefully. With that being said, the Z-Score is here to help! 🚀

Again, it is up to you to determine how much risk to take. A good rule of thumb is diversifying your investments and investing at most 10% of your portfolio in a risky strategy. Take a look at this service’s Z-Score below:

This service has a score of 80, which indicates that it is a very low-risk investment. This means that the service has a history of performing well while managing its risk over the last six months, which would make it a great option for investing larger portions of your portfolio.

Now if we continue looking for another service on the marketplace, we may come across one that has a very high risk indicator:

This service has a Z-Score of 8. However, you may also notice that its one-month profits are 71.1%. This shows that the higher the risk, the higher the reward.

If a service has a low Z-Score, it means it doesn’t meet all of the requirements to be labeled as an extremely safe investment. However, even with a low score, remember that all services listed in our marketplace have passed our rigorous manual inspections and still meet our minimum standards.

You may wish to diversify most of your investments into services with lower-risk indicators while leaving a smaller portion to invest in higher-risk services.

Again, this is totally up to you, and although this tool is here to help, all risks are subject to each investor.

Marketplace Visibility

The Z-score automatically adjusts service visibility on the marketplace based on this filter. Services are not added or removed entirely from the marketplace; visibility is toggled according to Z-Score. If a service’s Z-Score falls below 40 points, it will be temporarily hidden from view on the marketplace. Once the Z-Score reaches 40 or higher, the service will become visible again. At no point does this process fully delist a service.

Disclaimer
​Z-Score is based on past data (previous 365 days). It can't be taken for sure that it will evolve the same way in the future.

Please visit the profiles and check the entire track record to get a better overview of each service's performance.

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