A strategy's risk level depends on its Max Drawdown (MDD).
Max Drawdown (MDD) logs the maximum negative continuous difference since the strategy went live. It helps you determine the maximum potential risk a strategy may face. The value is provided in percentages.
Bincentive-defined Risk Levels (color coded):
MDD < 5% : Risk Level 1 (Green)
MDD >= 5% & MDD < 10% : Risk Level 2 (Green)
MDD >= 10% & MDD < 15% : Risk Level 3 (Yellow)
MDD >= 15% & MDD < 20% : Risk Level 4 (Yellow)
MDD > 20% : Risk Level 5 (Red)