What does the concentration number measure?

The biggest single event's contribution to the wallet's net realized result: biggest event divided by net total. At 0.6 or above, the read carries the concentrated style label: one outcome carries so much of the dollar total that the headline figure is mostly an echo of that event, even when the equal-weighted per-position edge is clean. The label is about how the money was made, not about the wallet's character, and since 2026-07-15 it never changes the verdict.

How can concentration be higher than 1?

When the biggest winning event is larger than the whole net result because other events netted negative. A wallet whose biggest event contributed 150 units while everything else lost 50 units nets 100, and its concentration is 150 / 100 = 1.5. Values above 1 are real and observed; they mean the record is even more top-heavy, not that the math broke.

Why do more positions not clear the label?

Because the label is about proportion, not count. Adding 200 tiny positions to a record whose net result still comes from one event leaves the same composition: the dollar figure remains an echo of that single outcome. The only thing that clears the concentrated label is a record whose result no longer depends on one event. Sample-size problems are handled separately, by the 30-position and 20-independent-event floors, which more resolved, independent positions do fix.

Concentration

The answer first

Concentration measures how much of a wallet's net realized result comes from its single biggest event. At 0.6 or above, the read carries the concentrated style label: the dollar result is mostly an echo of one outcome, so however clean the equal-weighted per-position edge is, the path anyone following the wallet would live through is the lumpy one, not the average. The label travels with the verdict and never changes it; the sufficiency floors (30 resolved positions, 20 independent events) and the interval decide the state.

The intuition, with one worked example

Take a made-up record. A wallet nets $100 across 50 resolved positions, and $80 of it came from one event. Concentration is 80 / 100 = 0.8, above the 0.6 cap, so the concentrated label attaches. Whatever its edge and win rate say, the dollar outcome is mostly one good call (or one lucky one; the record cannot tell you which), and the caveat travels with the verdict. Now make the same wallet's biggest event worth $150 while everything else lost $50 combined. The net is still $100, and concentration is 150 / 100 = 1.5. The ratio exceeds 1 whenever the biggest win is larger than the whole net result because the rest of the book lost money. Values above 1 are real and observed on live records, and they mean extremely top-heavy, not broken math.

The actual method

The ratio is the biggest single event's realized result divided by the net realized result. It is not bounded to [0, 1] by design; it is null when the net result is not positive, since the share of a non-positive total is not meaningful.
The 0.6 cap is an operator-set conservative floor, reused from the cohort screen in the skilled-wallet registry. It is deliberately not tuned per wallet.
Since the 2026-07-15 realized-edge reframe the threshold attaches a style label instead of demoting: the verdict comes from the sufficiency floors (30 resolved positions AND 20 independent resolved events, fail-closed) plus the interval, and the label travels with it. A skilled verdict with the concentrated style renders with a caution accent and a mandatory caveat, never the bare positive accent.
More positions do not clear the concentrated label. Only a record whose net result stops depending on one event clears it.
A cousin check runs on categories: when more than 60% of a record sits in one market category, the evidence grade in the cohort deliverable is capped and the dependence travels as a named caveat.

Where you see this on the site

The analyzer reports the concentration value with every read, and the concentrated style note appears on the verdict when it crosses the cap. The same label drives the board annotations, the badge copy, the API styles field, and the binding caveat column in the enterprise deliverable. The glossary page is /learn/concentration-flag.

What this does NOT mean

The concentrated label is not an accusation and not a verdict on the wallet. Concentrating on one high-conviction event can be a legitimate style, and since 2026-07-15 the machine treats it exactly as that: a style, stated plainly next to the verdict. A record with an interval that clears zero and a concentrated label reads as skilled on the per-position record, with the caveat that the dollar outcome rode on a few events and that concentrated records can mask gamed activity. The label is not permanent: it describes the record as it stands, and a record that broadens its base of resolved results reads differently.

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