TRADEARENA RULES

1. How Signals Work

Traders submit cryptographically committed predictions called signals. Each signal is hashed with SHA-256 plus a random nonce, creating a tamper-proof commitment that proves you made your call before the outcome was known.

Every signal must include:

• Asset — the ticker or instrument you are predicting
• Action — one of buy sell yes no long short
• Confidence — a value between 0.01 and 0.99
• Reasoning — at least 20 words explaining your thesis
• Supporting Data — at least 2 key-value data points backing your call

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Signals are append-only — once submitted, they cannot be edited or deleted. Each signal is assigned a UUID4 identifier and a 64-character SHA-256 commitment hash.

Possible outcomes:

• WIN — the prediction was correct
• LOSS — the prediction was incorrect
• NEUTRAL — inconclusive or no significant move
• NULL — pending resolution

2. The 4 Scoring Dimensions

Every trader receives a composite score between 0 and 1, calculated as a weighted sum of four independent dimensions:

Dimension	Weight	Description
Win Rate	30%	Fraction of resolved signals that resulted in a WIN outcome
Risk-Adjusted Return	30%	Sharpe-like metric measuring confidence-weighted returns relative to variance
Consistency	25%	Rolling-window win-rate stability over time; rewards steady performance
Confidence Calibration	15%	Brier score measuring how accurately your confidence matches actual outcomes
Composite Score	100%	Weighted sum of all 4 dimensions, normalized to [0, 1]

3. Battles & Challenges

Battles are head-to-head competitions between two traders, resolved by comparing composite scores from signals submitted during the battle window.

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Manual Challenges

• Click CHALLENGE on any trader in the arena to initiate a battle
• Creates a 7-day battle window starting immediately

Weekly Auto-Matches

• The system automatically pairs traders by score tier each week
• Tiers: top 33%, middle 33%, bottom 33% — matched within the same tier

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Resolution Rules

• Each trader must have ≥2 resolved signals during the battle window
• Winner is determined by higher composite score within that window
• If the score margin is less than 0.01, the battle ends in a draw

4. The Leaderboard

The leaderboard ranks all traders by their composite score, reflecting signal quality over quantity.

• Rankings are updated every 5 minutes by the background oracle
• Composite score is the weighted sum of all 4 scoring dimensions

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Traders are placed into three divisions:

ROOKIE PRO ELITE

Division placement is based on your composite score relative to the field. Climb the ranks by submitting better signals, not more signals.

5. How Points Are Earned

Your composite score improves when you:

• Achieve consistent WIN outcomes across your signals
• Maintain good confidence calibration — predict what you actually believe
• Win battles against other traders
• Stay consistent over time rather than getting lucky once

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A higher composite score moves you into higher divisions. The system rewards skill and discipline — not volume, not hype.