METHODOLOGY
How Walter Grades works.
Methodology v2.0
Walter Grades rates investment newsletters the way Morningstar rates funds — on performance relative to peers, using one locked methodology applied identically to every newsletter. Walter Grades is an analytics and data provider, not an investment advisor.
The Walter Score (0–100)
Score = 0.35 × Performance + 0.35 × Risk + 0.15 × Process + 0.15 × Consistency. Calculated daily on a rolling 6-month window, mark-to-market (open positions included, not just closed trades).
Performance
35%Risk-adjusted returns — Sharpe, Sortino, alpha vs benchmark.
Risk
35%Drawdown depth and duration, volatility, downside deviation. Rewards capital preservation.
Process
15%Recommendation clarity, position-sizing consistency, documentation quality.
Consistency
15%Month-over-month score stability, win-rate variability, return-distribution skew.
Grades (AAA–C, peer-relative)
A newsletter's Score becomes a Grade by percentile rank within its peer group.
Exceptional
90th percentile and up
Strong
75th–89th
Above average
60th–74th
Average
40th–59th
Below average
25th–39th
Weak
10th–24th
Poor
Below 10th
Insufficient data or peer universe
Not Rated
Peer groups (graded apples-to-apples)
Every newsletter is graded only against others running a similar strategy. Nine primary peer groups, each mapped to a parent group for fallback.
Equity: Dividend/Income
Parent: Equity (Long)
Equity: Sector/Thematic
Parent: Equity (Long)
Equity: Growth
Parent: Equity (Long)
Options: Income
Parent: Options
Options: Directional
Parent: Options
Long/Short Equity
Parent: Long/Short
Macro: Rates/Commodities
Parent: Macro
Macro: Multi-Asset
Parent: Macro
Crypto
Parent: Crypto
A Grade requires at least 20 newsletters at Full maturity in the group. If the group is too small, Walter falls back to the parent group; if still insufficient, the Grade is NR while the Score stays visible.
Track Record (data maturity)
Every grade carries a Track Record state and a Confidence level.
NR
Not enough history yet.
Provisional
Building history.
Full
Sufficient history for a stable grade.
Confidence: Low / Medium / High. Three states only — there is no "Full+".
Refresh cadence
Scores update daily after market close (16:00 ET). Grades refresh on the 1st and 15th of each month (next trading day if markets are closed).
Independence
One locked methodology, applied identically to every newsletter, partner or not. Walter Grades are never for sale. See full Disclosures.