Understanding Consistency Score: A Quick Example for Traders
The Consistency Score measures how evenly you spread your profits over time. A lower score means your profits are more consistent, while a higher score indicates most of your profit came from one big day.
Here’s the formula:
Consistency Score = (Best trading day profit ÷ Total profit) × 100
Example: How to Achieve a 35% Consistency Score
Let’s assume you trade for five days and aim for a Consistency Score of around 35%. Here’s how your daily profits might look:
Day | Daily Profit | Total Profit | Consistency Score |
---|---|---|---|
1 | $400 | $400 | 100.00% |
2 | $300 | $700 | 57.14% |
3 | $500 | $1,200 | 41.67% |
4 | $600 | $1,800 | 33.33% |
5 | $200 | $2,000 | 30.00% |
How This Works:
- Your best trading day is $600 (Day 4).
- Your total profit at the end of five days is $2,000.
- The Consistency Score shows how evenly you spread your profits. A lower score means more consistent trading, while a higher score indicates most profits came from one big day. It's calculated as (Best trading day profit ÷ Total profit) × 100. For example, if your best day was $600 and your total profit over five days is $2,000, your Consistency Score would be 30%. Spreading profits evenly across days helps achieve a lower, more consistent score.
By spreading your profits more evenly, your score stays low, showing consistency in trading performance.
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