Usage
Omega Ratio Usage
Turn the ratio into rules you’ll actually follow—gate, size, and adapt.
Playbook
Gatekeeper: Take risk only when Omega > 1.0 (or > 1.5 for stricter quality).
Sizing: Scale up when Omega rises and stays elevated; scale down when it sinks toward 1.0.
Adaptation:
Raise the target to demand more edge (ratio falls, but quality bar rises).
Lengthen the Period to smooth chop; shorten to catch turns sooner.
Mode selection: Use log on volatile/crypto assets or multi-% bars; linear on low-vol equities/indices.
Reading the scale
< 1.0: Shortfalls dominate → defensive posture, fewer setups, smaller size.
≈ 1.0: Breakeven quality → wait for confirmation or a better entry model.
> 1.5 / > 2.0: Good / strong quality → trends/carry more likely to pay.
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