When I look at my results, I see it's showing me "behind" on a lot of streets. I currently am practicing in a game that's pretty passive (it usually has 2-3 intermediate aggro players and the rest are beginners who are passive). As a result, there are a lot of hands that just get checked around on one or two streets. So I often end up at showdown, or at least at the turn, with a hand I have no intention of investing in. I think my IQ score goes down, because it's seeing it the same as if I am calling down with a bad hand.
Is this how it works? Or does it only judge you on the streets where money went into the pot?
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No, that isn't how the IQ scores work. It only costs you if you are putting money in. There are a bunch of threads on the forum that discuss the IQ scores. Here is one with a lot of info on this:
https://www.advancedpokertraining.com/poker/forum/discussion/44/abc-poker