Joshua Della Vedova

DV-PMI · Execution edge

Execution Edge Monitor

Updated 2026-06-15

As of 2026-06-15, the algorithmic-minus-retail Prelec alpha gap stands at +0.027, with a 52-week rolling z-score of -0.65. A positive gap indicates algorithmic wallets weight tails more heavily than active retail — the behavioral signature of execution-quality divergence. Algorithmic Prelec alpha: 1.011. Active retail: 0.984.

A positive gap indicates algorithmic wallets weight tails more heavily than active retail. The bold line is a 13-week moving average.

Current per-type alphas

Wallet classPrelec alpha
Algorithmic1.011
Active Retail0.984
Sophisticated1.366
Casual0.920
One-Shot1.108

52-week rolling statistics on the gap

StatisticValue
Mean0.100
SD0.113
Min-0.186
Max0.346

Methodology

For each wallet class (algorithmic, active retail, sophisticated, casual, one-shot), we fit a one-parameter Prelec weighting function to that class’s weekly calibration curve. The resulting alpha captures how strongly the class distorts probabilities away from the identity. The Execution Edge gap is alpha(algorithmic) minus alpha(active retail). In Paper 1, algorithmic wallets capture −4.25 bps effective spread on their trades while active retail pays +11.68 bps; the alpha gap is the behavioral signature of that divergence and tracks it week-by-week.

Data

execution_history.csv (wide, 176 weeks from 2022-12-12) · execution_by_type_history.csv (long) · execution_latest.json

Cite this index

@misc{dellavedova2026execution,
  title        = {Execution Edge Monitor},
  author       = {Della Vedova, Joshua},
  year         = {2026},
  url          = {https://jdellavedova.com/execution}
}