What Is the Position Health Score and How Is It Calculated?

Position health is a 1-to-10 score Stock Compass gives each holding, combining three things: recent price momentum, your unrealised profit or loss, and whether the position has grown too large in your portfolio. It describes the current state of this holding and contains no fundamentals.

How it is calculated

Each component is converted to a 1–10 score, then weighted: momentum (RSI) 40%, unrealised P&L 40%, concentration 20%. The result is rounded to one decimal.

• Momentum score uses RSI(14). Lower RSI scores higher: RSI at or below 20 earns the full 10, around 35 gives about 8, around 55 about 5, and above 70 drops to 2 or less. The reasoning is that a holding that has run up steeply is more prone to a pullback, so overbought readings lose points. Missing RSI scores a neutral 5.
• P&L score uses the fee-inclusive unrealised return. A gain above 10% earns 10; any gain scores between 8 and 10; break-even is about 6; an 8% loss about 5; a loss of 15% or more sits at 1 to 2. Missing cost data scores 5.
• Concentration score compares this position's market value as a share of all your holdings with a recommended share, defined as 100 divided by the number of holdings, floored at 10%. At or below the recommendation scores 8 to 10; up to one and a half times it scores 5 to 7; beyond that it falls quickly toward 1. With a single holding there is nothing to compare, so it scores 5.

Rules of thumb

Score	Label	What it usually means
8.0 to 10	Healthy	Nothing is stretched, or one strong component offsets a weak one
5.0 to 7.9	Attention	At least one component is in the middle zone; worth checking which
1.0 to 4.9	Warning	Usually one or two of: a deep loss, clear overbought, an oversized position

The bands are fixed: 8 and above is healthy, 5 and above is attention, the rest is warning. It is a prompt to look at the details, not an instruction.

What it does not tell you

• Whether the company is any good. The score carries no earnings, debt or valuation input; for that, read the verdict's business-quality dimension.
• What to do. "Warning" only says something is stretched; the response depends on the rules you wrote beforehand.
• How the same stock looks in another account. The concentration score depends on your own holding count and total value, so scores are not comparable across portfolios.

In Stock Compass

It appears only on stocks marked as holdings. With "show all metrics" on, the card shows a line such as "◉ Position health 7.5 healthy", coloured by label: green for healthy, amber for attention, red for warning; hovering shows the score out of 10. The holdings list can be sorted by health and filtered to only healthy, attention or warning positions.

Position health is not a strategy-rule indicator; it is a card-level composite. Two of its components can be expressed in rules: momentum through rsi (e.g. rsi > 70) and P&L through floating_gain_pct and floating_loss_pct (e.g. floating_loss_pct > 10), with holding_days covering time held. For the question behind the concentration score — how big each position should be — see position sizing; the P&L component is measured against your net cost basis.