Very well explained indeed…!!
In my opinion, the rating system is very bad. It has an intristic inflation, possibly because of this additive term you mentioned. If I miss a round or two, my rating will stay the same but my rank will drop significantly. It’s not such a big issue for an averege contestant but it gets a lot worse once you get near the top. IMO the additive term is a really bad idea.
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@ivan100sic: Yes, indeed. In Codechef contests missing a contest is much worse than just having an average performance (if you’re at least an average competitor), because your rating will stay the same, while the ratings of most contestants around you will increase (and, thus, your rank in the ratings standings will drop). On the other hand, this might motivate more contestants to participate (knowing that not participating is worse than participating and obtaining an average result). Anyway, I also don’t like this additive term (although my rating definitely benefited from it).
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Is rating depend on past contest performances ?
this user’s ( dhananjays7 | CodeChef User Profile for Dhananjay Kumar Sharma | CodeChef ) rating is increased in the graph but not in the upper right side of his profile, look into this admin 
sir my rating for long contest shows negative value… how to remove the discrepency… please look into this…
sir in my profile,it shows negative rating…how to remove the discrepency ?