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Consistency Rule Explained - Pro

Understand the purpose of the Consistency Rule and how it's calculated in the funded stage.

Updated over 2 weeks ago

🛡️ What Is the Consistency Rule?

The Consistency Rule is a safeguard that applies during the funded stage. It ensures traders maintain a stable and sustainable approach instead of relying on a single high-risk trade to achieve most of their profits.


🧠 Key Concepts

Concept

Details

Purpose

Encourages long-term, consistent trading performance across multiple days.

When It Applies

- Only in the funded stage (not during evaluation)
- Even when the account is in drawdown


🧮 How It's Calculated

Formula:
Consistency % = (Most Profitable Day / Total Profit) × 100

🔢 Example

  • Scenario:
    Total Profit = $1,000
    Most Profitable Day = $350

  • Calculation:
    (350 / 1000) × 100 = 35%

📈 Since 35% is below the 40% threshold, the trader can request a payout.


⚠️ Exceeding the Threshold

If your most profitable day makes up more than 40% of total profits:

  • ❌ You won’t fail the account.

  • 🔄 But you must continue trading until the ratio falls below 40% to request a withdrawal.


💡 In Case of Drawdown

The rule still applies when your account is in drawdown.

  • Profits are calculated from the initial account equity, not the current balance.

  • Any recovery of losses is not counted as new profits.


🔒 Summary of Rule Settings

Rule

Value/Outcome

Consistency Threshold

40%

Failure If Exceeded?

❌ No

Action Required

Continue trading to rebalance profit distribution

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