By way of introduction, partnering with a prop firm should be a mutually beneficial arrangement, and traders must handle other people’s capital responsibly.
The Edge Score is a straightforward metric designed to distinguish skilled traders from gamblers. As a pro-ethical trading prop firm, we use this MiFunder Edge Score to promote responsible trading practices, especially for those who may have misused or are misusing the prop firm model.
The MiFunder Edge Score is not a consistency rule and should not be viewed as one.
Our goal is not to limit your potential earnings but to ensure you practice ethical and responsible trading.
To qualify for withdrawals during the funded phase, traders must achieve an Edge Score of 60%. There are no hidden rules.
The Edge Score is calculated using the following formula:
An example of Traderx, TraderY and TraderZ
Explanation
TraderX takes a much more consistent approach to risk management compared to TraderY and TraderZ. This is evident from the relatively similar magnitudes of daily profits and losses.
TraderY shows high volatility in their trading, with a very large profit on Day 5 compared to other days. This suggests less consistent risk management. TraderZ has one big winning day (Day 1) but otherwise shows small losses, indicating possible reliance on luck rather than a solid strategy.
The Edge Scores reflect these differences:
TraderX has the highest Edge Score (75%), indicating a solid strategy and proper risk management.
TraderY has a lower Edge Score (31%) due to the inconsistency in daily results.
TraderZ has the lowest Edge Score (24%), suggesting potential reliance on luck rather than a consistent strategy.
Can I track my Edge Score?
Yes, you can monitor your Edge Score Target directly through the MiFunder Dashboard, enabling you to track progress and refine your trading strategy.
It's normal for your Edge Score to fluctuate. Regularly reviewing and tweaking your approach will help stabilize your score and improve your risk management, leading to a better Edge Score.
Hint: Study the table shared above.