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What is the Consistency Rule?
What is the Consistency Rule?
Rocco H. avatar
Written by Rocco H.
Updated over a month ago

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 50% of your total profits in challenge phases and 45% of your total profits in Simulated Funded Stage. The rule applies during all phases of every Challenge type and Funded account for Consistency Plans.

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 50% 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 Challenge 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.

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