Alpha Contribution

What it means: How much of your portfolio’s outperformance or underperformance is due to decisions beyond general market moves.

In plain terms: How much of your result came from skill rather than luck or market direction.

Example: If the overall crypto market is flat but your portfolio is up 12%, that gain represents positive Alpha Contribution.

• Bonds: Hard to generate; usually requires precise timing and expertise.
• Equities: The benchmark for active managers trying to beat the market.
• Crypto: More common due to inefficiencies, rewarding strong research and timing.

How to use it: Use Alpha Contribution to check whether your strategy is genuinely adding value. If it’s consistently negative, you may be better off holding a market tracker like BTC and calling it a day.