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How Consistency Ratio (CR) is Calculated: Simple & Clear

Updated today

Only 3 numbers matter:

  1. Your biggest winning day's profit

  2. Your total profit (all closed trades)

  3. The 40% rule


⚖️ The Formula

CR (%) = (Biggest Win Day ÷ Total Profit) × 100

Must be ≤40%


🧮 Step-by-Step Calculation

Example Trader: Alex ($10K Account)

Day

Profit

What Happened

1

+$500

Small win

2

+$4,000

Big trend catch!

3

+$300

Small win

4

-$200

Loss (doesn't count as "win")

5

+$600

Medium win

Step 1: Find Biggest Winning Day

Day 2: $4,000

Step 2: Calculate Total Profit

= $500 + $4,000 + $300 + $600 = $5,400
(Losses reduce balance but aren't "profit")

Step 3: Apply Formula

CR = ($4,000 ÷ $5,400) × 100 = 74%

74% > 40% → ❌ Continue Trading!


🛠️ How to Fix It (2 Options)

Option 1: Trade More to "Dilute"

Day

New Profit

New Total Profit

New CR

6

+$800

$5,400 + $800 = $6,200

$4,000 ÷ $6,200 = 64%

7

+$1,000

$7,200

$4,000 ÷ $7,200 = 56%

8

+$1,800

$9,000

$4,000 ÷ $9,000 = 44%

9

+$1,000

$10,000

$4,000 ÷ $10,000 = 40%

Option 2: Partial Close (Avoid Big Wins)

  • On Day 2: Close 50% at $2,000 profit

  • Close 50% next day at +$2,200
    → Biggest win = $2,200 (not $4,000)
    → CR = ($2,200 ÷ $5,400) = 41% (almost compliant!)


📝 Key Rules to Remember

Rule

Example

Only profitable days count for "Biggest Win"

Day 2 = $4,000 (win) ✓
Day 4 = -$200 (loss) ✗

Losses reduce total profit → May worsen CR

$5,000 profit + $2,000 loss = $3,000 total → CR increases!

Open trades don't count

Floating $1,000 profit? Doesn't help CR

You control the ratio with more trades or partial closes

See Options 1 & 2 above

💡Tip: After a big win, trade smaller positions until your CR drops below 40%!


🧩 Why CR?

To ensure profits come from consistent skill – not one lucky trade.
Good: Many balanced wins
Bad: "All-in" gambles

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