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Consistency Rule Examples

Updated over 3 weeks ago

Understanding the Consistency Rule

The Consistency Rule is designed to promote disciplined, sustainable trading by discouraging overreliance on one or two large trades to meet profit goals. Instead, it encourages traders to demonstrate steady performance across multiple trading days and positions.


Why It Matters

Evaluation firms use consistency rules to assess whether a trader's profits come from skill and strategy rather than luck or risky behavior. This helps ensure that those who pass challenges or earn payouts can maintain long-term success in real trading environments.


How the Rule Works

Depending on the account type and phase, the consistency rule typically requires that no single trading day or trade contributes more than a set percentage (e.g., 40% or 50%) of your total profit.


Examples

Passing the Consistency Rule:

Let’s say a trader earns $1,000 total profit over 10 trading days. Here's how their profits are distributed:

  • Day 1: $100

  • Day 2: $80

  • Day 3: $120

  • Day 4: $150

  • Day 5: $100

  • Day 6: $90

  • Day 7: $110

  • Day 8: $80

  • Day 9: $90

  • Day 10: $80

  • Total: $1,000

In this case, no single day accounts for more than 15% of total profits. This trader meets the consistency requirement.


Failing the Consistency Rule:

Now, consider another trader who also earns $1,000, but it happens like this:

  • Day 1: $800

  • Days 2–10 combined: $200

  • Total: $1,000

Here, Day 1 contributes 80% of total profit — clearly violating a 40% or 50% consistency rule. This would result in the trader failing the consistency requirement, even if they hit the overall profit target.


Key Points to Remember

  • Don’t “blow up” the account with one trade. Spread gains over time.

  • Smaller, consistent profits are better than one massive win.

  • Track your daily P&L to ensure you’re not relying too heavily on a single day.

  • The rule applies to payouts and evaluations, depending on the account type.

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