This document explains every metric, score, and calculation in SyncWealth, how it is computed, where the methodology comes from, and what its limitations are. All formulas are deterministic: given the same data, the same result is always produced. No metric is based on AI guessing or unverifiable heuristics.
How SyncWealth measures the performance of your investments. Two different methods are used because they answer two different questions.
Time-Weighted Return (TWR)
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How well your investments actually performed, regardless of when you added or withdrew money. This is the standard used by fund managers to report performance.
Money-Weighted Return (MWR / XIRR)
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Your personal rate of return, it rewards good timing and penalises bad timing. If you invested a large amount just before a strong rally, your MWR will be higher than your TWR.
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P&L Attribution
SyncWealth decomposes every P&L figure into its two drivers: price movement and currency movement. This separation shows where your return is actually coming from.
Today's P&L
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How much your position made or lost since yesterday's market close, in both absolute value (€) and percentage (%).
Price Return
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The portion of P&L that came from the asset itself moving, entirely excluding currency effects. If your stock went up 2% in USD, price return is +2% regardless of what EUR/USD did.
FX Return
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The portion of P&L that came purely from currency movements. Even if a stock didn't move at all, a stronger euro makes your USD holding worth less in euros, that loss is the FX Return.
Average Weighted Cost (AWC)
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Your average purchase price per share, weighted by how many shares you bought at each price. If you bought 10 shares at €10 and then 10 more at €20, your AWC is €15, not €10.
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Position Quality
Quantitative signals that assess the fundamental quality and momentum of individual holdings.
Piotroski F-Score
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A score from 0 to 9 measuring a company's financial health from its own accounting data. 7–9 means strong, improving fundamentals. 0–2 is a warning sign. It answers nine yes/no questions about profitability, leverage, and operational efficiency.
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Risk-Adjusted Returns
Risk-adjusted metrics put returns in context. A 15% return with extreme volatility may be worse than a 10% return with low volatility.
Sharpe Ratio
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Return earned per unit of total risk taken. A Sharpe of 1.0 means you earned exactly enough return to justify your volatility. Above 1.5 is excellent. Negative means a risk-free savings account would have served you better.
Sortino Ratio
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Like the Sharpe ratio, but it only penalises bad volatility (downside), not good volatility (upside). More appropriate for portfolios with occasional large up days, like growth stocks, where high total volatility is acceptable.
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Portfolio Score
A composite 0–100 score measuring how well your portfolio is constructed from a risk management perspective. It does not predict returns. It measures whether the portfolio is built for long-term sustainability.
How the Score is Calculated
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Six dimensions, each scored independently with deterministic formulas. No AI interpretation, every point is traceable to a specific formula and data input.
Dimension 1, Diversification (max 20 pts)
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Measures the effective spread of capital across positions and sectors. A portfolio with 10 equal positions scores higher than one with 9 tiny positions and one dominant holding.
Dimension 2, Risk-adjusted Returns (max 20 pts)
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The quality of your returns relative to the volatility you absorbed. Steady gains with low drawdowns score well; high volatility with modest gains scores poorly.
Dimension 3, Drawdown Discipline (max 20 pts)
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Measures how well losses are contained. Holding deep-loss positions for months or years is the most common portfolio construction failure among retail investors.
Dimension 4, Position Quality (max 20 pts)
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The fundamental quality of your equity holdings, based on Piotroski financial health scores, analyst consensus targets, and recent price momentum.
Dimension 5, Construction Discipline (max 10 pts)
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How deliberately managed your portfolio is: conviction tags on positions, recent analysis coverage, and positions organised into thematic blocks. Measures process quality, not performance.
Dimension 6, Macro Alignment (max 10 pts)
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How well your thematic blocks align with the current macro environment, as assessed by Invenio. A Rates Trade block in a falling-rates world scores POSITIVE; the same block in a rising-rates world scores CAUTIOUS.
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Conviction System
A four-level system for recording your explicit view on each position. Keeps your thinking documented and drives portfolio review reminders.
ADD / HOLD / TRIM / EXIT
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ADD: you intend to buy more at current or lower prices. HOLD: you are keeping the position as-is, no immediate action. TRIM: you are gradually reducing the position. EXIT: you intend to close the position entirely.
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Data Sources & Resolution
Where SyncWealth's data comes from, prices, FX rates, identifiers, and how symbols are resolved across different brokers and exchanges.
Live Prices & FX Rates
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Live prices come from Yahoo Finance. SyncWealth fetches them via a Cloudflare Edge proxy to access pre-market and post-market prices accurately.
Historical Price Data
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Daily closing prices used for charts, TWR computation, and risk metrics. Fetched via a Cloudflare proxy to get full history, bypassing Yahoo's throttling of AWS IPs which returns monthly cadence for long histories.
ISIN, International Securities Identification Number
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A 12-character code that uniquely identifies any financial instrument worldwide. The same company's shares on Paris and New York exchanges have different tickers but the same ISIN. SyncWealth uses ISINs to resolve the correct Yahoo Finance symbol when a broker uses non-standard tickers.
Ticker Symbol Resolution
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When you import a CSV, SyncWealth automatically identifies each ticker's correct Yahoo Finance symbol using AI with web search. It groups tickers by type (ISIN-based, fund, bond, US equity, European equity) and sends targeted prompts to resolve each group accurately.
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AI Analysis (Invenio)
How Invenio works, what it does, what it doesn't do, and how to interpret its outputs.
Per-Asset Analysis
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Invenio analyses each position individually using live web search. It returns: investment thesis, price targets (bear/base/bull), catalysts, risks, Piotroski F-Score, peer context, and a conviction recommendation (ADD/HOLD/TRIM/EXIT).
Invenio Report (Portfolio-Level)
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A monthly portfolio review that analyses all positions together, looking for overlaps, contradictions, macro risks, and block-level themes. Produces verdicts for every position and a set of block themes.
SyncWealth Methodology Wiki · Generated 22 July 2026
All formulas are deterministic. No AI guessing. Questions: discuss in Ask Invenio.