Does the Consistency Score Target limit my profit to 50% of the profit target?
No, it doesn't. Our Consistency Score Target is not the same as the Consistency Rule Target you find elsewhere. Our Consistency Score Target is not related to Payouts.
This is because our Consistency Score Target considers both your losing trades and your winning trades, which both contribute to your Consistency Score Target.
Our goal is not to limit your profitability but to ensure that you follow proper risk management practices where your winning and losing trades are consistent rather than relying on luck.
Working with a prop firm should be a mutually beneficial relationship, and traders must act responsibly when approaching trading other people's funds.
How the Consistency Score Target is calculated?
(Absolute Value of the Most Profitable or Losing Day / The Absolute Value of The Net Profit ) x 100%.
Example:
Trader |
A |
B |
C |
Day 1 |
-$4,900 |
-$4,900 |
+$6,000 |
Day 2 |
+$3,400 |
-$3,000 |
-$10 |
Day 3 |
-$1,000 |
-$200 |
-$900 |
Day 4 |
+$3,600 |
-$300 |
-$50 |
Day 5 |
+3,900 |
+$13,400 |
-$40 |
Net P/L |
+$5,000 |
+$5,000 |
+$5,000 |
Absolute Value of the Most Profitable or Losing Day |
4,900 |
13,400 |
6,000 |
The Sum of The Absolute P/L Value of All Trading Days |
16,800 |
21,800 |
7,000 |
Consistency Score Target |
29% |
61% |
85% |
As you can see from the table above, the Consistency Score Target is calculated by factoring in your best losing OR winning day.
Trader A takes a much more consistent approach to risk management than Trader B and Trader C, which indicates that Trader A have a solid strategy, follows proper risk management practices, and does not rely on luck in his trading strategy.
Can I track my Consistency Score over time?
Yes, you can track your Consistency Score Target through the CTI Dashboard Widget, allowing you to monitor improvements and adjustments in your trading approach.
Fluctuations in your Consistency Score are natural. Review and adjust your approach regularly to stabilize and improve your risk management, which will improve your consistency score.
You can also download this excel spreadsheet calculator to help with Consistency Score Target Calculation!
Download the Consistency Score Target Calculator here