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:
- the best simple directional opportunity in that benchmark over the scoring window, adjusted for their realized exposure level, and
- a passive sector-matched shadow portfolio built from their own realized sector allocation.
This is how you stop "I bought one hot pocket of the market" from looking like genuine active skill.
The market is not always up. Score is measured as residual edge, not raw return.