In representation theory, the existence of a Z + -grading on a related finite dimensional algebra often plays an important role. For example, such a grading arises from the Koszul structure of the finite dimensional algebra representing the principal block of the BGG category O associated to a complex semisimple Lie algebra. But Koszul gradings in positive characteristic have proved elusive. For example, except for small values of a positive integer n, it is not known if the Schur algebra S(n, n) has such a Koszul grading, assuming the characteristic p of the base field satisfies p ≥ n, though this grading would suffice to establish Lusztig’s character formula for these algebras. (And even though the character formula is known for p sufficiently large [H. Andersen, J. Jantzen and W. Soergel, Representations of Quantum Groups at a pth Root of Unity and of Semisimple Groups in Characteristic p, Asterique, Vol. 220, 1994], it is not known if the Schur algebra is Koszul for p sufficiently large.) This paper introduces Z/2-gradings on quasi-hereditary algebras, and shows that these gradings are almost as useful as a full Z + -grading, while being possibly much easier to find. We define the notion of a Z/2-based Kazhdan–Lusztig theory, which appears to be more flexible than, and generalizes, the notion of a Kazhdan–Lusztig theory (as first defined in [E. Cline, B. Parshall and L. Scott, Abstract Kazhdan–Lusztig theories, Tohoku Math. J. 45 (1993), 511–534]). However, its existence suffices, as was the case with the original notion, to establish character formulas in the standard settings, determine Ext n -groups, and show that homological duals behave well. Finally, we present some suggestive symmetric group examples involving Schur algebras which were an outgrowth of this work.