by that i mean when you go to custom match (in ranked match) and you choose it to sort by same skill.  
 
i'm wondering because i'm trying to get better as Juri but when i select same skill level, all i get is crazy Akuma and Ryu players who completely destroy me. they're not exactly at my skill level. does it sort by PP? because even if it was sorted by that, i shouldn't be getting these players because my Player Points right now is about 200.  
 
thank you 

I've been wondering that too, it doesn't seem to sort by any way i can recognize, i'll fight players that have 2,000 more BP or PP than me. Or players who have a grade 1 or 2 levels above me.

A mix of PP and character rank

I think is sorts by a certain range and tries to put you somewhere near someone in that range.  But if there is no one near you, then it just puts you with someone in that range. 
 
The highest I've fought was about a 4500 bp when I was around 600.  So the range might be 0-5000 or something.  I think your Character rank matters as well.

character rank doesn't factor in since the game doesn't know what character you'll be picking.

These days it'll only match you up with people who'll mash right through you.

Very poorly.

I wish there was a way not to go by PP.  I like playing as Dan a lot online and as a result, I almost always lose as him.  Because of this, my PP is constantly under 1000, but would be far higher if I stuck to the 3 characters I'm actually good with.  Really, there isn't a way to  sort by actual skill.  You're better off getting into a match with some friends who you know are your general skill level.  Also, the training option never hurts.