Performance attribution

Analysis that breaks down results to see whether return comes from edge, context, or errors.

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Who this is for — Anyone who wants to understand where performance really comes from, instead of attributing everything to strategy or luck.

Performance attribution separates results into components: setup contribution, market-regime impact, operational costs, execution errors, and plan deviations. It is the key step to improve with precision.

In plain terms — It is not enough to know "how much" you earned: you need to know "why".

Prerequisites — Complete silver-path first (min.: weekly-review, playbook, trading-plan, checklist). Foundation: bronze-path.


Performance Attribution (Waterfall) +10% Beta (Mercato) -2% Fees & Slippage +7% Alpha (Edge) +15% Net Final Return
Schema grafico per il concetto di Performance attribution.

How to apply it usefully

Attribution works when it leads to concrete decisions, not only retrospective analysis.

  • Segment results by setup, time band, regime, and instrument.
  • Isolate plan-compliant trades from out-of-process trades.
  • Measure the weight of costs, slippage, and avoidable errors.

Example — The quarter is positive, but attribution shows profit comes almost entirely from two setups in risk-on, while the rest is negative. You decide to cut marginal strategies and concentrate risk where edge is proven.

Common mistakes to avoid

  • Analysing only total result without decomposition.
  • Ignoring regime effect when reading metrics.
  • Changing the method without evidence on the cause of the problem.

Card

  • What it is: structured breakdown of performance drivers.
  • What changes: improves risk allocation toward real edge.
  • Quick check: verify report by setup, regime, costs, and compliance.

Gold path — Module: Professionalisation. Part of gold-path.