The Truth Algorithm: Our Scoring Methodology

Most prop firm reviews are based on “vibes” or affiliate commissions. Ours are based on Math.

At Funded Truth, we don’t guess. We built a proprietary Rating Engine that inputs 15 data points across 5 categories to calculate a weighted “Truth Score” for every firm. A firm cannot buy a higher score; they have to earn it by removing predatory rules.

Here is the exact formula we use.


📊 The Weighted Formula

If a firm survives the Kill Switches, we calculate their score based on these 5 weighted pillars:

1. Trust & Safety (Weight: 35%)

The most important factor. If they don’t pay out, nothing else matters.

  • CEO Visibility: We check if the leadership is public.
    • 10 Pts: Active on video, verified LinkedIn, interviews.
    • 1 Pts: Anonymous / Ghost owners.
  • Business Age: How long have they survived?
    • 10 Pts: 3+ Years.
    • 1 Pts: < 6 Months.
  • Broker Quality: Where are the orders going?
    • 10 Pts: Tier-1 Regulated Broker (e.g., ThinkMarkets).
    • 1 Pts: Unregulated “In-House” Server or Grey-Label.
  • Payout Proofs:
    • 10 Pts: Thousands of verified payouts on Discord/Blockchain.
    • 1 Pts: No public proof.

2. Rules & Hidden Traps (Weight: 25%)

How likely are you to lose the account due to a technicality?

  • Drawdown Type:
    • 10 Pts: Static. (The loss limit never moves).
    • 2 Pts: Trailing. (The limit moves up as you profit, reducing your room to breathe).
  • Consistency Severity:
    • 10 Pts: No consistency rule.
    • 5 Pts: Reasonable (e.g., 40% max daily profit).
    • 1 Pts: Strict (Lot size consistency ranges).
  • News Restrictions:
    • 10 Pts: Trade whenever you want.
    • 1 Pts: Strict bans around news events.

3. Payout Experience (Weight: 20%)

How hard is it to get your money?

  • Speed:
    • 10 Pts: Instant / Same-day processing.
    • 5 Pts: Weekly cycles.
    • 1 Pts: Net-30 or monthly cycles.
  • The Buffer Rule:
    • 10 Pts: None. You can withdraw 100% of profits.
    • 1 Pts: Mandatory. You must leave a “safety buffer” in the account, locking up your capital.
  • Minimum Withdrawal:
    • 10 Pts: $50 or less.
    • 1 Pts: High limits ($500+) designed to prevent you from withdrawing.

4. Trading Conditions (Weight: 15%)

The day-to-day execution quality.

  • Slippage & Spread: Based on our live execution tests.
  • Commissions:
    • 10 Pts: $0 – $3 per lot.
    • 1 Pts: $10+ per lot.
  • Instrument Diversity: Do they offer Crypto, Indices, and Metals?

5. Value (Weight: 5%)

Why is this only 5%? Because a cheap challenge is expensive if they deny your payout.

  • Price-to-Drawdown Ratio: We don’t look at the sticker price. We calculate the cost per dollar of maximum drawdown.
    • Example: A $100k account with a $3k trailing drawdown is “more expensive” than a $50k account with a $3k static drawdown.

🚦 The Truth Scale: What the Colors Mean

Our plugin generates a color-coded badge for every review. Here is how to read it:

🟢 The Green Zone (8.0 – 10.0)

Verdict: TRUSTED. These firms have verified payouts, fair rules, and legitimate broker backing. We currently trade with these firms ourselves.

🟡 The Yellow Zone (5.0 – 7.9)

Verdict: CAUTION. These firms are legitimate, but they may have one or two annoying rules (like a Trailing Drawdown or slower payouts). Good for diversification, but read the fine print.

🔴 The Red Zone (0.0 – 4.9)

Verdict: AVOID. These firms either triggered a Kill Switch, have hidden rules designed to fail you, or have no verified track record. Do not deposit.


A Note on Updates

Prop firms change their rules constantly. Our Rating Engine is dynamic. If a firm introduces a new “hidden rule” today, we update the input fields, and their Truth Score drops immediately across the entire website.