Whitepaper

Understanding DerivArena

A guide to how we measure trading skill, simulate competition, and turn practice into progress.

Why we built this

Most traders never see the difference between a lucky week and a skilled one. P&L alone cannot tell you whether you are actually improving. DerivArena makes that difference visible.

  • Rank traders by risk-adjusted performance, not raw P&L, so luck cannot dominate the leaderboard.
  • Surface behavioral tells (tilt, revenge sizing, held-to-expiry drift) in real time before they cost money.
  • Make practice a competition rather than a solo activity, so traders come back and improve faster.

The Archetypes

"Good trading" does not look the same for every person. DerivArena recognises five archetypes, and Phantom League simulates each of them against the same tape so you can see which style you actually resemble.

Momentum Rider

Trades with the trend. Reads strength, holds through noise, exits into exhaustion. Thrives in directional markets.

Mean Reverter

Fades extremes. Sells strength, buys weakness, leans on overextension. Shines in choppy, range-bound regimes.

Scalper

High frequency, tiny size, short holds. Lives on the spread, dies on the slippage. Precision is the whole strategy.

Contrarian

Trades against consensus. Positions when sentiment is one-sided. High variance, big asymmetric payoff when right.

Whale

Lower frequency, larger conviction, longer holds. Patient entries, structural exits. Size is the edge.

How it works

Sortino, not raw P&L

Your session score uses the Sortino ratio: excess return divided by downside volatility only. Two traders with identical P&L but different drawdown profiles rank differently — the calmer one wins.

Behavioral X-Ray

A tilt score (0-100) is computed live from your last trades: revenge sizing, shortening holds, breaking your own rules after losses. Above 60, the AI coach interrupts with a pre-mortem prompt before the next order ticket.

Branched timelines

After every resolved trade the engine replays the counterfactuals ("if you had held", "if you had paused after losses") and shows the alternate P&L. It is hindsight, but structured — and it is the fastest feedback loop we have found for changing behavior.

Real-time leaderboard (SSE)

The leaderboard is streamed over Server-Sent Events, so rank changes show up within seconds of a trade resolving — not on a 24-hour batch. Traders feel the competition as they play, which is where the engagement comes from.

Simulated sessions only. DerivArena never touches your private Deriv account or broker data without an explicit live-trading opt-in. Everything in a standard arena session is a risk-free simulation.

Delivery phases

DerivArena shipped in deliberate phases so each capability was validated before the next one landed.

Phase 0 — Foundation
Shipped
  • Dev environment + Makefile
  • PostgreSQL schema + migrations
  • CI + lint guardrails
Phase 1 — Core Arena MVP
Shipped
  • Competition CRUD
  • Sortino scoring engine
  • Real-time SSE leaderboard
Phase 2 — Gamified Modes
Shipped
  • Classic Arena, Boxing Ring, War Room
  • Phantom League, Anti-You, Behavioral X-Ray
Phase 3 — Conversion Engine
Shipped
  • Threshold nudges
  • AI coach + branched timelines
  • XP + rank progression
Phase 4 — Partner & Admin
Shipped
  • Template authoring
  • Funnel analytics
  • Referral attribution
Phase 5 — Deriv V2 live trading
Shipped
  • OAuth PKCE
  • Authenticated WebSocket
  • Real-money contracts

FAQ

How do I improve my score?

Your score is driven by the Sortino ratio of your session: risk-adjusted returns that penalize downside volatility, not upside. Focus on cutting losing streaks early, sizing consistently, and avoiding tilt-driven revenge trades. The AI coach surfaces the specific pattern that is hurting you most this session.

Why do I see trader archetypes ("Phantom League")?

In Phantom League mode, the five archetypes simulate alternate versions of you trading the same market. They let you see what a disciplined scalper or patient whale would have earned on the exact tape you just traded, so you can benchmark your own style against a population of plausible strategies.

How is this different from just running a demo account?

Demo accounts measure P&L. DerivArena measures skill. A lucky 4-trade win streak on demo looks identical to a structurally sound session; our Sortino + behavioral scoring separates the two so you can tell whether you are actually getting better.

Is my trade data shared?

DerivArena only records trades you place inside simulated competition sessions. Arena sessions live in the arena database; we never touch your private Deriv account or broker data without an explicit live-trading opt-in.

Why am I not on the public leaderboard?

The global leaderboard only surfaces traders who have completed at least one ranked session. Join a competition, play it to completion, and you will appear on the next SSE refresh (which streams updates in real time, not on a 24-hour batch).

What does "tilt" mean here?

Tilt is a behavioral score (0-100) computed from your recent trading cadence: revenge sizing, shortening hold times, breaking your own rules after losses. When tilt > 60, the AI coach intervenes with a pre-mortem prompt before your next trade.