How to Grade Your Trades in a Journal
Journaling isn’t just about writing down trades—it’s about measuring and improving. One of the most effective ways to do that is by grading each trade. Just like a teacher evaluates a student’s performance, you can assess your trades using clear grading criteria. For traders trying to pass prop firm evaluations like those offered by Funded Futures Network or Blue Guardian, a grading system helps you move beyond random wins or losses to repeatable performance.
Why Grading Matters More Than P/L
It’s tempting to think in terms of profit and loss only. But a good trade isn’t always a profitable one—and a profitable trade isn’t always good. Grading separates results from decision-making quality. This distinction is essential when evaluating progress under a prop firm’s strict rules.
- Good Trade + Loss = A
- Bad Trade + Win = D
- Good Trade + Win = A+
- Bad Trade + Loss = F
By grading the process rather than the result, you build discipline and resilience—two qualities every funded trader must have.
What Criteria to Use for Grading
Every grading system should be customized to your style, but here are common elements to consider:
- Setup Quality: Was it a high-probability setup you trade consistently?
- Entry Precision: Did you enter where you said you would?
- Stop Discipline: Did you place a stop and respect it?
- Risk Management: Was the trade within your pre-defined risk parameters?
- Execution Timing: Were you too early, too late, or just right?
- Emotional Control: Did you follow your plan or let emotion take over?
How to Assign Letter Grades
Use a rubric or checklist for each trade. Each item above can be worth 10 or 20 points depending on importance. For example:
- Setup Quality: 20 pts
- Entry Precision: 20 pts
- Risk Management: 20 pts
- Emotional Control: 20 pts
- Exit Timing: 20 pts
Total score out of 100:
- 90–100 = A
- 80–89 = B
- 70–79 = C
- 60–69 = D
- Below 60 = F
This makes your journal an objective measurement tool rather than a stream-of-consciousness log.
How to Use This Grading System in Daily Reviews
At the end of each day, average your trade grades. You’ll spot patterns fast:
- High grades but red P/L? Possibly just variance—stick to your plan.
- Low grades and losses? You’re making process errors—fix them first.
- High grades and profits? You’re aligned—scale up cautiously.
Turning Grades Into Goals
Use your trade grades to set improvement targets. For example:
- “Average above 85 for the week.”
- “No more than 2 trades graded below C.”
- “Hit a perfect 100 on my A+ setup twice this week.”
This makes your goals performance-based, not P/L-based—a mindset shift that prop firms love to see in funded traders.
Printable Trade Grading Templates
To streamline the process, use templates like those from the Prop Firm Press Journal Sheets collection. These pre-designed forms let you score and grade each trade with checkboxes and total fields—ideal for both evaluations and funded accounts.
Common Mistakes in Grading
- Grading Based on Outcome: Avoid letting profits inflate your grade.
- Skipping Bad Trades: Grade every trade, especially the ugly ones.
- Overcomplicating the Rubric: Keep it to 3–5 metrics you can evaluate quickly.
- Inconsistency: Stick to the system. Don’t change the rules based on how you feel.
How This Helps You Pass (and Stay Funded)
Prop firms are looking for consistency and discipline. Grading shows that you’re capable of executing your edge while managing risk. Firms like Top One Futures and Funded Trading Plus reward traders who treat their accounts professionally—just like a business.
Conclusion-Free Journaling that Drives Results
Don’t just write about your trades—evaluate them. Assign a grade. Track your performance. Use the data. This turns journaling into a performance tool, not just a diary. And it’s one of the fastest ways to go from hopeful applicant to consistent funded trader.
Download trade grading templates and execution rubrics now from Prop Firm Press and start scoring your trades like a pro.