Traders need to abide by the 20% consistency rule for Simulated Instant Funding Plus Accounts to be eligible for a payout.
What is the Consistency Rule?
The Consistency Rule at Funded Trader Markets ensures traders achieve stable and sustainable profits while managing risk effectively. This rule dictates that no single day’s earnings should surpass 20% of your total profits.
Why this Rule?
Funded Trader Markets’ Consistency Rule promotes steady profit growth and helps traders avoid emotional trading. By limiting the most profitable day to less than 20% of total profits, traders can better manage their risk-reward ratio and develop a sustainable trading strategy. This rule also helps Funded Trader Markets identify the most consistent professional traders to fund.
Important Details About the Consistency Rule
• Handling Drawdowns: If your day starts in a drawdown but ends in profit, those profits count towards the Consistency Rule. However, if you recover a drawdown within the same day, those
profits (up to recovering of drawdown for that day) do not count.
Example with a $100k Account:
• Scenario 1: Starting the day $1k in drawdown at $99k and ending the day at $102k results in a $3k profit counted towards the rule.
• Scenario 2: Starting the day at $100k, dropping to $97k, and recovering to $102k results in only $2k counted towards the rule.
How is the Consistency Rule Calculated?
Calculation: [Best Day Profit] ÷ [Overall Profit] = [Best Day % of Total Profit]
On a Simulated Instant Funding Account, you simply continue to trade until the point your best day profit is at or below 20% of the overall profits to be eligible for a payout request.