Consistency Rule Overview ( Evaluations )
Two-Day Pass Evaluation with 50% Consistency Rule
The evaluation is designed to assess consistency and profitability over two trading days. The rules are simple: traders must meet the profit target while adhering to the 50% consistency rule. Here’s how it works:
• Profit Target: For a $50,000 account, the profit target is $3,000 over two days.
• Consistency Rule: No more than 50% of the total profit target can be achieved in one day. The remaining profit must be achieved on the second day.
Example for a $50,000 Account:
• Day 1: The trader may generate up to $1,500 in profit.
• Day 2: The trader must generate the remaining $1,500 to reach the $3,000 target and pass the evaluation.
The two-day structure ensures traders demonstrate discipline and consistency across multiple trading sessions.
Consistency Rule Overview (Funded Accounts)
In our funded accounts, we have a 40% consistency rule to ensure that trading gains are distributed fairly over time, promoting sustainable trading practices and risk management.
What This Means
in funded accounts, traders must make sure that no single trading day exceeds 40% of the account’s total gains to qualify for a payout. The rule applies only to realized gains over time.
Example: Following Consistency Rules
Account: $50,000 (Funded Account)
7-Day Trading Gains:
Day 1: +$780
Day 2: +$540
Day 3: +$1,200
Day 4: +$850
Day 5: +$390
Day 6: +$550
Day 7: +$870
Total Gains: $5,180
Account Value: $55,180
To check compliance, calculate 40% of total gains:
$5,180 x 0.40 = $2,072
Since none of the daily gains exceeded $2,072, the trader met the consistency rule and is eligible for payout.
Example: Not Following Consistency Rules
Account: $50,000 (Funded Account)
7-Day Trading Gains:
Day 1: +$780
Day 2: +$540
Day 3: +$4,100
Day 4: +$850
Day 5: +$390
Day 6: +$1,200
Day 7: +$870
Total Gains: $8,730
Account Value: $58,730
Here, 40% of total gains is:
$8,730 x 0.40 = $3,492
Since Day 3’s gains of $4,100 exceed $3,492, the consistency rule was breached, disqualifying this trader from cashing out.
What Happens if the Consistency Rule is Broken?
If a trader exceeds the 40% limit on any trading day, their account will not be breached. Instead, the trader simply needs to continue trading until their account meets the 40% consistency rule.
To requalify, the largest daily gain ($4,100) is divided by 0.40 to determine the new minimum gains target:
$4,100 / 0.40 = $10,250
Then, calculate the difference between this target and total current gains:
$10,250 - $8,730 = $1,520
The trader must achieve an additional $1,520 in gains, bringing the account to $60,250, to meet the consistency rule and become eligible for withdrawal. This rule prepares traders to maintain disciplined and consistent performance in live markets.