I teach my math classes using a mastery format and have to abide by the limits of our traditional school. We are the only course at our middle school doing it this way, but students come to us from the elementary schools used to being rated on a mastery scale rather than a grade for ELA and math. Unfortunately, we still have to provide a traditional letter grade for each of our 6 grading periods. Here's how we do it.
1) We only have 1 assessment grade for each grading period, though I put all the standards that were taught in the gradebook (we use Skyward for ours) at 0% of the grade just to make it available to parents. The assessment grade is the percent of standards taught that were mastered scaled up between 50 (F) and 100 (A+)*. So, if a student masters 2 out of 4 standards for that grading period it comes to about a C. I can share the formula we use, which we lifted from another school.
2) At the end of the year the letter grades get averaged for each semester. The gradebook does this and we have no control over it, so the final grade is the average of each of the 3 grades for that semester.
3) This kind of thing takes a lot of communication from you to parents. Most of them will get it and appreciate the extra feedback, particularly if you have a reassessment policy that allows students to attempt to demonstrate mastery multiple times.
4) We also have a homework/classwork component to the grade (20% homework, 80% assessments). It doesn't make a lot of sense for mastery learning, but I am picking my battles here.
I am limited by the grading period dates, though I will probably be making an argument to switch to semester-long grading for my math class. Our 6-week periods are technically "progress report" periods and the semester grade is what goes on the permanent record. Right now we have a lot of stress on what happens in each 6-week window and we're not supposed to change grades from previous grading periods, which makes it hard for kids to come back from a bad grading period if they end up learning something at a later date. You mentioned this in your post and I'm still trying to find ways around it as a teacher.
* Another school in the district has a chart where 2.0 = B-, 2.5=B, 3=A- or some such. Since each standard is a separate thing, we don't think it makes sense to average them as a whole. We report them individually and the assessment grade is a measure of how many things you mastered.
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