^{IFTC officials and industry representatives gather on stage during the official inauguration, marking the introduction of a structured framework for transparent and risk-adjusted trading performance evaluation.}


KUALA LUMPUR, Aug 28 (Bernama) -- As financial trading becomes increasingly visible across digital platforms and online communities, the International Financial Trading Championship (IFTC) believes one fundamental question remains — how should trading performance be measured fairly?
 
A trader may show strong returns or a profitable account, but without understanding the level of risk undertaken, drawdown experienced and consistency of performance, headline returns alone may provide an incomplete picture of trading capability.
 
Building on its record recognition at the Malaysia, ASEAN and Asia levels, IFTC is seeking to address this challenge through a more structured approach to performance measurement.
 
Operating under the institutional governance of the International Financial Consultant Certified Institute (IFCCI), IFTC places measurable performance, risk discipline, transparency and consistent evaluation at the centre of its competition philosophy.
 
From Performance Claims to Measurable Evidence
 
The growth of online trading communities has made it easier than ever for traders to share results. However, performance is frequently communicated through screenshots, percentage returns or selected trading results, while the risks taken to achieve those results may receive less attention.
 
Two traders may generate similar returns while assuming significantly different levels of risk. Likewise, a high short-term return does not necessarily demonstrate whether a trader can maintain discipline and manage risk over a meaningful period.
 
IFCCI President Prof. Dato’ Dr. Kingston Chang said profitability remains important, but it should not be viewed in isolation.
 
“Profit is important, but profit is only one part of the story.
 
“If two traders generate the same return but one assumes significantly greater risk or experiences substantially higher drawdown, their performance should not necessarily be viewed in the same way.
 
“The industry needs a more balanced way of understanding trading capability — one that considers not only what was achieved, but also how it was achieved,” Chang said.
 
Introducing the Trader Performance Index
 
At the centre of IFTC’s approach is the Trader Performance Index (TPI), a performance measurement framework designed to evaluate trading results with greater consideration of risk.
 
Rather than ranking traders purely by absolute profit or percentage return, TPI considers the relationship between return and drawdown, providing a more balanced representation of trading performance.
 
The principle is straightforward: generating returns matters, but the amount of risk taken to generate those returns matters as well.
 
IFTC said no single measurement can fully define a trader’s ability. Instead, TPI provides a common performance reference that can be applied consistently within the IFTC framework, allowing eligible results to be compared using the same measurement principles.
 
Why a Minimum 30-Day Performance Period Matters
 
Time is another important element of the framework. Under IFTC’s latest structure, an eligible TPI performance record must cover a minimum period of 30 days before it can qualify for recognition within the wider IFTC ranking ecosystem.
 
The requirement is intended to reduce emphasis on isolated short-term results and provide a more meaningful period in which risk management, drawdown and trading behaviour can be observed.
 
IFTC Organising Chairman Kayden Chiew said the intention is to recognise demonstrated performance rather than momentary outcomes.
 
“A trader can have an exceptional day or week, but professional performance should be evaluated over a period that allows both return and risk behaviour to become more visible.
 
“The 30-day requirement provides a common minimum period and encourages participants to consider not only returns, but also how they manage performance throughout the competition,” Chiew said.
 
Same Measurement, Same Opportunity
 
IFTC believes a professional competition should create an environment where performance can speak for itself. Within such an environment, established traders and emerging participants should ultimately be evaluated against the same defined criteria.
 
Personal reputation, social media following or commercial influence should not determine performance ranking. Measurable results should. This philosophy forms part of IFTC’s broader effort to move trading competition from claims towards evidence, and from headline returns towards measurable performance.
 
Transparent rules and consistent competition requirements are intended to provide participants with greater clarity on how their performance is assessed. For IFTC, the purpose of a common performance framework extends beyond identifying winners. It also seeks to encourage a healthier understanding of trading performance, where risk management, discipline and consistency are recognised alongside profitability.
 
Chang said such standards are important to the longer-term professional development of the trading community.
 
“A credible trading ecosystem should not encourage the assumption that the highest return automatically represents the strongest trader.
 
“We want to encourage a culture where performance can be demonstrated, risk can be understood and results can be evaluated under common standards.
 
“From claims to evidence, and from returns to performance — that is the direction we believe professional trading competition should move towards,” he said.
 
Having established record recognition at the Malaysia, ASEAN and Asia levels, IFTC said the next stage of its development will apply these performance principles across a broader competition ecosystem.
 
Further details on how different competitions, industry partners and traders can participate within the IFTC framework will be introduced as part of its next phase.
 

SOURCE: International Financial Trading Championship (IFTC)
  
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--BERNAMA