Risk appetite scoring: from conservative to casino
"High risk" and "low risk" are vibes unless you can measure them. Risk appetite scoring turns a wallet's transaction history into a single, explainable position on a risk axis — from conservative accumulator to casino-style speculator.
The inputs
Risk appetite is not one number; it is a weighted synthesis of observable behaviors:
- Position sizing — how much of the wallet's balance moves in a single transaction. A wallet betting 80% of its balance on one trade is behaving differently from one moving 2%.
- Drawdown behavior — what happens after a loss. Panic exits and revenge trades score higher risk than calm rebalancing.
- Holding time — short average holds imply a chase for quick moves, higher volatility exposure.
- Frequency — trading intensity amplifies risk independent of size.
- Concentration — putting everything into one asset is riskier than diversification, all else equal.
Explainability is the point
A black-box "risk: 87" is useless. SIGBOT decomposes the score so you can see exactly which behaviors pushed it up or down — "high risk driven by 82% max single-position size and 3-hour average holding time." That is a defensible, reviewable result.
Risk is not bad
The scoring does not judge. A high-risk profile is a description of behavior — and for some strategies, it is exactly what the strategy demands. The value is knowing, before you trust a wallet with your money, how it actually behaves.
Use it for counterparty diligence
Whether you are evaluating a trading partner, an influencer, or a service that accepts deposits, the risk appetite score is one of the most compact summaries of what a wallet will likely do next.