Tier 7 · Elite Cert · Module 7.1
Theory exam preparation: cross-tier review
A structured review of the whole curriculum for the Elite Cert theory exam — the key concepts from each tier, a self-test for each, and a two-week study plan.
Lesson 1 of 2 · 5 min read
The Elite Cert theory exam is cumulative: it draws on every tier, from order books to portfolio risk. This lesson is your review map. It condenses each tier into the concepts that matter most, gives you a quick self-test for each, and sets out a study plan. The goal isn't memorisation — it's being able to apply the ideas to scenarios, because that's what the exam asks.
What you'll learn
- The core concepts of each tier, in one place
- A self-test to find your weak areas quickly
- How the exam is structured and scored
- A two-week study plan
- How to approach scenario-based questions
1. The exam
- Format: multiple-choice, scenario-based questions across all tiers
- Pass mark: 80%
- Answers: graded on the server, with an explanation for every question after you submit
- Retakes: allowed — use the explanations to target your review
The badge also requires the practical self-audit of your live trade log (next lesson).
2. Review map by tier
| Tier | Core concepts | Key lessons |
|---|---|---|
| 1 Foundation | Bid/ask and spread; order book and slippage; sessions and liquidity; candles and structure; order types; leverage vs position size; position sizing formula; risk per trade; R and expectancy; biases; checklists | Buyers, sellers, order books · Position sizing 101 · Stop-loss / take-profit logic |
| 2 Essentials | Your market's mechanics and drivers — pip value, rate expectations, data surprises (FX); real yields and the dollar (gold); earnings and guidance (stocks); fair value and rollover (indices); custody and liquidation (crypto); Greeks (options) | Your chosen track(s) |
| 3 Practitioner | Objective swings and breaks of structure; patterns with confirmation; indicator families and overload; strategy families; written rules; backtesting stages and biases; forward testing | Entry, stop, and target rules · Manual backtesting |
| 4 Strategist | Correlation and total open risk; drawdown tiers; prop-firm rules; revenge triggers and circuit breakers; behavioural journaling; automation layers; signal-copier risks; bot red flags | Portfolio-level risk · Drawdown control |
| 5 Professional | Records and returns adjusted for cash flows; realistic income; scaling rules; 30-day evaluation; rolling expectancy; intermarket analysis; cross-asset event maps | Realistic income expectations · Full journal |
| 6 Master | Specialisations and their demands; robustness testing; volatility-based sizing and risk budgets; capstone documentation; audit trails; honest results presentation | Quant / Systematic Trading · Run a live or funded trial |
3. Self-test
Answer each without looking. Every "not sure" is a lesson to revisit.
- A buy stop order fills at a worse price than its trigger. Why?
- Account $8,000, risk 1%, EUR/USD stop 32 pips. Position size?
- What is the break-even win rate at a 2.5 : 1 reward-to-risk?
- CPI comes in at 3.1% vs 3.3% consensus and 3.0% previous. Hawkish or dovish surprise?
- Why can a strategy with a 70% win rate lose money?
- Name three biases that inflate backtest results.
- You hold long EUR/USD, long gold, and short USD/CHF. What's the hidden theme?
- At a 10% drawdown under a tiered plan, what typically happens to risk?
- Why use rolling expectancy instead of overall expectancy during an evaluation?
- What makes a track record verifiable?
(Answers are in the lessons listed above. If you can answer at least eight confidently, you're ready to attempt the exam.)
Worked answers to two self-test questions
- Q2: Risk = $80. Size = $80 ÷ (32 × $10) = $80 ÷ $320 = 0.25 lots.
- Q3: Break-even win rate = 1 ÷ (1 + 2.5) ≈ 28.6%.
4. A two-week study plan
| Days | Focus |
|---|---|
| 1–2 | Self-test; list weak areas |
| 3–4 | Foundation: sizing, R, expectancy — redo the calculations |
| 5–6 | Your Essentials track; retake its exam |
| 7–8 | Practitioner: rules, backtesting biases |
| 9–10 | Strategist and Professional: portfolio risk, drawdown, evaluation metrics |
| 11 | Master: robustness, risk budgets |
| 12 | Retake any module knowledge checks below 80% |
| 13 | Rest, light review |
| 14 | Sit the exam |
5. Approaching scenario questions
- Identify the concept first: sizing? expectancy? surprise vs consensus? correlation?
- Do the arithmetic on paper — most numeric questions are one formula.
- Watch for traps: comparing with the previous figure instead of consensus; rounding position sizes up; treating "overbought" as a sell signal; win rate without payoff.
- Eliminate answers that promise certainty — markets rarely offer it, and good answers rarely claim it.
Common mistakes
- Rereading instead of self-testing.
- Skipping the arithmetic practice.
- Reviewing only favourite topics.
- Rushing the exam without reading the full scenario.
Key terms
| Term | Meaning |
|---|---|
| Cumulative exam | An exam covering all previous tiers |
| Self-test | Answering without notes to find weak areas |
| Scenario question | A question applying a concept to a specific situation |
Practice
- Complete the self-test and list every topic you weren't sure about.
- Follow the two-week plan, adjusting the days to your weak areas.
- Retake every knowledge check where your best score is below 80%.
- Sit the Elite Cert exam.
Quick recap
- The theory exam is cumulative and scenario-based, with an 80% pass mark.
- Use the review map and self-test to target weak areas.
- Follow a structured study plan that includes arithmetic practice.
- In each question, identify the concept, calculate, and avoid the classic traps.
Educational content only — not financial advice. Trading involves substantial risk of loss. Practise on a demo account before risking real money.
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