Question 1

What does Risk Level 1 to 10 mean?

Accepted Answer

Risk Level is the Gravity Risk score shown in ten bands. Level 1 is the coolest tenth of the scale and Level 10 the hottest.

Question 2

How is Risk Level calculated?

Accepted Answer

Gravity Risk runs from 0 to 100, and the chart colours each reading by the tenth of the scale it falls in: roughly 0 to 10 is Level 1 and 90 to 100 is Level 10. Exactly where an edge sits depends on the model. On crypto charts the edges sit just above each multiple of ten, at 10.01, 20.02 and so on, so a coin scoring exactly 10 is still Level 1. On stock and ETF charts the edge is the multiple of ten itself, so a stock scoring exactly 10 is Level 2. Levels are a finer cut than the score's four bands, which change at 25, 50 and 75. On crypto charts three levels cross a band edge: Level 3 (20.02 to 30.03) spans 25, Level 8 (70.07 to 80.08) spans 75, and Level 5 (40.04 to 50.05) reaches a hair past 50. On stock charts only Level 3 and Level 8 cross one.

Question 3

How do you read a Risk Level?

Accepted Answer

Exactly as you read Gravity Risk, in coarser steps. The colours run from teal at Level 1 to red at Level 10. A level compares an asset with its own history: Level 7 on two coins means each is equally stretched against its own lifetime average, not that they are equally risky.

Question 4

What can a Risk Level not tell you?

Accepted Answer

Everything Gravity Risk cannot. A high level can persist through a long rally, and the crypto and stock Gravity models use different baselines, so a coin's level and a stock's level are not directly comparable.

What does Risk Level 1 to 10 mean?

How is Risk Level calculated?

How do you read a Risk Level?

What can a Risk Level not tell you?

Other models explained