The Squadies represent 2 things. 

1. They are a relative system to determine how good a movie is. They are on a scale of 0-5 Squadies. 0 Squadies is terrible, 3 Squadies is a middle of the pack, and 5 Squadies is exceptional. 

2. They represent yearly fictitious awards given out to films/actors categorically. Covering various categories, some not represented by Academy Awards.