CMT I Scoring Breakdown: From Raw to Scaled Score
Understanding Raw Score Calculation
The foundation of your performance is the raw score, which is the total number of questions answered correctly out of the 132 items presented on the exam. It is important to note that while the exam contains 132 questions, only 120 of these are typically scored. The remaining 12 items are pretest questions—unidentified queries being vetted for future exams. These do not contribute to your final mark, but because they are indistinguishable from the scored questions, candidates must treat every item with equal importance. The raw score is a simple linear count; if you answer 90 of the 120 scored questions correctly, your raw score is 90. There is no complex weighted formula applied at this initial stage of the calculation.
The Scaled Scoring Methodology
Once the raw score is determined, it is converted into a CMT scaled score. This process maps the raw points onto a standardized scale, typically ranging from 0 to 100. The primary purpose of this conversion is to ensure that a candidate's score reflects their level of knowledge relative to the difficulty of the specific exam version they took. Because different versions of the exam may contain slightly more or less challenging questions, a raw score of 85 on a "hard" version might represent the same level of mastery as a 90 on an "easy" version. The scaled score accounts for these variances, providing a consistent metric for the Board of Directors to evaluate candidate competency across different testing windows.
Why Scaling is Used
Scaling is a standard practice in professional certification to maintain the integrity of the credential. In the context of how is the CMT Level 1 scored, scaling prevents "luck of the draw" from influencing a candidate's career trajectory. If the Association relied solely on raw percentages, candidates who happened to receive a more difficult set of questions would be unfairly penalized compared to those who received a simpler set. By using Equating, a statistical process that adjusts for differences in form difficulty, the Association ensures that the passing standard remains constant over time. This ensures that a passing score in the October cycle represents the same level of technical proficiency as a passing score in the June cycle.
Official Passing Score and Competency Standard
Determining the Pass/Fail Cut Score
The Association does not publish a fixed percentage for success, leading many to ask, what is a passing score for CMT Level 1? The determination is made using the Modified Angoff Method, a psychometric procedure where a panel of subject matter experts reviews each exam question to estimate how many "minimally competent candidates" would answer it correctly. This expert consensus establishes the "cut score" or the minimum raw points required to pass. Because the difficulty of questions fluctuates, the raw number of correct answers needed to pass may change slightly from one exam window to the next, though the level of required knowledge remains fixed.
Historical Passing Score Benchmarks
While the exact cut score is confidential, historical data and candidate feedback suggest that the CMT Level 1 passing score requirements generally align with a scaled score of approximately 70. This does not necessarily mean a candidate must answer exactly 70% of the questions correctly; rather, it means their performance must meet the 70-point mark on the adjusted scale. In some instances, a raw score in the mid-60s might be sufficient to pass a particularly rigorous exam, while a more straightforward paper might require a raw score in the low 70s. Aspirants should aim for a consistent 75% or higher in practice exams to provide a safety margin against these fluctuations.
How the Standard is Set
The standard-setting process is overseen by the CMT Association’s Board of Directors and professional psychometricians. They utilize Item Response Theory (IRT) to analyze how individual questions perform. If a question is found to be statistically flawed—for instance, if the highest-performing candidates all miss it while lower-performing candidates get it right—it may be excluded from the scoring process. This rigorous oversight ensures that the passing standard is a true reflection of professional readiness. The goal is to certify that the candidate possesses the requisite skills in trend analysis, volume studies, and risk management to function effectively in a professional market environment.
Receiving and Interpreting Your Score Report
On-Screen Preliminary Results
Upon submitting the computer-based exam at a Prometric testing center, candidates usually receive an immediate preliminary result on the computer screen. This result is categorized simply as "Pass" or "Fail." While this provides instant relief or direction, it is technically "preliminary" because the Association conducts a final forensic data analysis to ensure there were no technical glitches or security breaches during the session. Although it is extremely rare for a preliminary result to be overturned, candidates must wait for the official notification before claiming they have passed the level. This immediate feedback allows candidates to begin planning their Level II studies or schedule a retake without waiting weeks for processing.
Understanding Your Official Score Report
The official score report is typically released via email and the member portal within three to six weeks of the exam window closing. This document provides the CMT scaled score explained in the context of your specific performance. Instead of just a binary result, the official report includes a diagnostic component. It provides a visual representation of how you performed relative to the passing threshold. This is crucial for candidates who did not pass, as it highlights whether they were "close" to the cut score or if they significantly underperformed. The report serves as a formal record of achievement that can be shared with employers or used for professional verification.
A vital feature of the score report is the performance breakdown across the core domains of the CMT Level I curriculum. These domains include Theory and History, Markets, Market Indicators, Chart Construction, and Trend Analysis, among others. The report usually categorizes performance in each area as "Low," "Mid," or "High." This Domain-Level Feedback is essential for identifying specific knowledge gaps. For example, a candidate might score "High" in Chart Construction but "Low" in System Testing. This granular data allows for a targeted study plan for the next level or a retake, ensuring that time is not wasted reviewing concepts already mastered.
Factors That Do Not Affect Your Score
No Penalty for Guessing
The CMT Level I exam does not utilize negative marking. This means that an incorrect answer carries the same weight as a blank answer: zero points. There is no penalty for guessing, which is a critical tactical consideration for candidates. Mathematically, it is always in the candidate's best interest to provide an answer for every single question, even if it is a complete guess. Eliminating even one or two clearly incorrect distractors significantly increases the probability of gaining a point. This "Rights-Only" scoring system encourages candidates to manage their time so that no question is left unanswered by the end of the session.
Equal Weighting of Questions
Every scored question on the Level I exam contributes exactly one point to the raw score. There is no differential weighting based on the difficulty of the topic or the length of the question. A simple question regarding the definition of a "Doji" candle is worth exactly as much as a complex question requiring the calculation of a Relative Strength Index (RSI) value. Candidates should use this to their advantage by quickly securing points on easier, definitional questions and not spending an inordinate amount of time on a single, difficult calculation that carries no extra weight. Efficiency in identifying "low-hanging fruit" is a hallmark of successful test-takers.
No Peer-to-Peer Curve
A common misconception is that the exam is "curved" based on the performance of other candidates in the same window. This is not the case. The CMT Level I is a criterion-referenced exam, not a norm-referenced one. This means your success depends entirely on whether you meet the absolute competency standard set by the Association, regardless of how well or poorly other candidates perform. If every candidate in a session demonstrates mastery above the cut score, everyone passes. This creates a non-competitive environment among candidates, encouraging study groups and the sharing of knowledge, as one person's success does not diminish another's chances.
What Happens After You Pass or Fail
Next Steps After a Passing Score
Once a candidate achieves a passing score, they are eligible to register for the CMT Level II exam. Passing Level I is a significant milestone, as it validates the candidate's grasp of the basic lexicon and foundational tools of technical analysis. It is important to maintain the momentum, as the Level II curriculum shifts from definitions to the application of techniques. Candidates should also ensure their CMT Association membership is in good standing, as this is required to progress through the levels and eventually obtain the charter. The knowledge gained in Level I—specifically regarding the Dow Theory and the basic tenets of technical analysis—will be revisited with much higher complexity in subsequent levels.
Retake Policies and Waiting Periods
If a candidate does not meet the passing threshold, they must adhere to the Association's retake policies. Generally, there is a mandatory waiting period of 90 days before a candidate can attempt the Level I exam again. This policy is designed to ensure that the candidate has sufficient time to remediate their knowledge gaps rather than simply attempting to memorize the question bank. While the CMT pass rate Level I is not officially disclosed, the exam's rigor means that many successful charterholders required more than one attempt at a level. Persistence and a structured approach to the retake are highly valued traits in the professional community.
Analyzing Weak Areas for Retakes
For those who must retake the exam, the score report's diagnostic section is the most valuable tool for improvement. Candidates should cross-reference their "Low" performing areas with the Learning Outcome Statements (LOS) provided in the official curriculum. If the report indicates a weakness in "Selection and Decision Making," the candidate should focus on the chapters covering risk management and portfolio construction. It is often helpful to use different study materials or practice question providers for the retake to gain a new perspective on the same concepts. The goal is to turn "Low" performance areas into "High" ones while maintaining proficiency in previously strong areas.
Comparing CMT Level I Scoring to Other Levels
Scoring Consistency Across CMT Program
The CMT Association maintains a consistent scoring philosophy across all three levels of the program. The use of scaled scores, the Modified Angoff Method for setting cut scores, and the absence of a peer-to-peer curve remain constant. This consistency provides a predictable environment for candidates as they advance. However, while the scoring mechanics are similar, the format changes. Level I is entirely multiple-choice, whereas Level III introduces a "constructed response" (essay) section. Despite the format change, the underlying principle of measuring professional competency against a fixed standard remains the "north star" of the Association's grading process.
Level I vs. Level II & III Complexity
While the scoring mechanics are consistent, the "depth of knowledge" required shifts significantly. Level I focuses on Recall and Recognition, testing whether a candidate can identify patterns or define terms. Level II moves toward Analysis and Application, requiring the candidate to interpret data and apply tools to specific market scenarios. Level III focuses on Synthesis and Evaluation, where the candidate must integrate various techniques into a cohesive investment strategy. Consequently, while a 70 scaled score might be the target for all levels, the intellectual effort required to reach that 70 increases substantially as one progresses from Level I to Level III.
Building on a Level I Pass
Achieving a passing score on Level I is more than just a hurdle cleared; it is the construction of the "base" for a technical analysis career. The scoring breakdown often reveals that successful Level I candidates have a broad, balanced understanding rather than being experts in one niche. This balance is critical for Level II, where the exam will test the interrelationships between different indicators. For instance, understanding how volume confirms price at Level I is essential for the multi-factor models encountered at Level II. A strong performance in the Level I scoring breakdown is the best predictor of success in the more grueling subsequent stages of the CMT journey.