Chapter 7 · §4.4

Benchmark-aware scoring, not raw return

Stopping "I bought one hot pocket of the market" from looking like skill

The benchmark-aware league should not reward passive market drift or obvious sector drift.

Each participant chooses an approved benchmark at registration. Their score is then measured against:

This is how you stop "I bought one hot pocket of the market" from looking like genuine active skill.

+16% +8% 0% -8% -16% RETURN W1 W2 W3 W4 W5 W6 W7 W8 W9 Energy idx -3% EM idx -1% Bond idx +2% S&P 500 +5% Sector idx +8% chosen benchmark Strategy +12% participant edge Score = excess over the participant's chosen benchmark, after sector-matching. Benchmarks span positive and negative — the market has no default direction.
The market is not always up. Score is measured as residual edge, not raw return.
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