TEVO Methodology
TEVO (Trade Expected Value Outcome) is a probability-driven framework inside Quantmatix designed to help traders identify high-quality medium-term reversal opportunities with clearly defined risk and reward.
TEVO focuses on trades where the expected value is positive, based on historical performance, volatility-adjusted targets, and additional quality filters.
What Is TEVO?
TEVO is part of Quantmatix’s medium-term reversal framework.
It is designed to identify trades where:
The expected value is clearly positive
Historical hit rate, reward, and risk support the setup
Risk and reward levels are clearly defined upfront
Each TEVO idea is generated using expected value calculations, combined with additional ranking and quality criteria to surface the strongest opportunities first.
How TEVO Ideas Are Constructed
TEVO ideas are built using several key components:
Expected Value Calculation
Each setup is evaluated based on its historical probability of success relative to its potential reward and risk.
Volatility-Adjusted Targets
More volatile instruments receive wider target and risk levels
Lower volatility instruments receive tighter levels
This ensures targets are optimized for the specific behavior of each instrument.
Quality Ranking
On top of expected value, additional ranking criteria are applied so that:
The highest-quality setups appear first
Users can focus attention on the most compelling opportunities
Performance Characteristics
Historically, the TEVO framework is designed to:
Hit Target 1 approximately 65% of the time for US and European equities
Deliver clearly defined risk and reward levels
Reach Target 1 in an average of 17 days
This makes TEVO particularly well-suited to swing traders and traders focused on medium-term setups.
Where to Find TEVO Ideas in Quantmatix
You can access TEVO ideas directly from the Screener.
Step-by-step:
Open the Screener
Select a region (e.g. Europe or North America)
Click Filter
Navigate to the TEVO section
You’ll see the current TEVO ideas listed at the top for the selected region.
You can further refine results by:
Company size
Sector
Other available screener filters
Who Is TEVO For?
TEVO is ideal for traders who:
Focus on medium-term reversal setups
Prefer probability-driven decision making
Want clearly defined risk and reward
Trade on a multi-day to multi-week timeframe
Step by Step video tutorial
Check out a step by step video tutorial here.
Summary
TEVO is a disciplined, probability-based methodology that helps traders focus on high-quality medium-term reversals, backed by historical performance and volatility-adjusted targets.
By combining Quantmatix’s market screening engine with a structured expected value framework, TEVO helps turn market data into actionable trade opportunities.