A rule that limits how much of your total profit can come from a single trading day during the evaluation or funded stage. It is designed to ensure traders show consistent performance rather than relying on one large or lucky trade to meet the profit target.
Why It Matters
- 1The consistency rule catches many experienced traders off guard because it's possible to hit your profit target and still not pass the evaluation.
- 2If your firm has a 40% consistency rule and your profit target is $10,000, no single day's profit can exceed $4,000. This forces you to plan your daily profit expectations before you begin trading.
Example
- 1You are trading a $100,000 evaluation with a $10,000 profit target and a 40% consistency rule.
- 2This means no single trading day can account for more than $4,000 of your total profit.
- 3If you make $5,500 in one day, you cannot pass the evaluation yet because that day exceeds the allowed 40% of the total profit target.
- 4You would need to continue trading and increase your overall profit so that the $5,500 represents 40% or less of your total profits.
- 5For example: ● Day 1 profit: $5,500 ● Total profit needed for it to be within the 40% rule: at least $13,750 Once your total profit reaches $13,750 or more, the $5,500 day now represents 40% or less of the total, meaning the consistency rule is satisfied.
Common Mistakes
- ✖Focusing only on hitting the profit target without tracking daily profit distribution
- ✖Not knowing whether the consistency rule is calculated on gross or net profit
- ✖Assuming the rule only applies during the evaluation — some firms carry it into the funded phase