What is it?
The Consistency Percentage ensures traders maintain steady performance by limiting the largest single day profit to a certain percentage of the total profit. This encourages disciplined trading by reducing reliance on a few large trades and promoting consistent results.
How does it work?
In our LucidPro and LucidDirect accounts, you must maintain a certain Consistency Percentage to be eligible to request a payout.
LucidPro Consistency Percentage = 35%
LucidDirect Consistency Percentage = 20%
Use the following formula to determine if you are adhering to the Consistency Percentage:
Largest Single Day Profit / Account Profit = Consistency Percentage
Example
You trade your $50k LucidPro Account and your Largest Single Day Profit was $1,000 and your Account Profit is $4,000. Plug the values into the above formula.
$1,000 / $4,000 = 25%
Congratulations, you have maintained consistency under the LucidPro 35% requirement. You may now request a payout so long as you have met the other necessary objectives. However, if your largest day had exceeded 35% of your Account Profit, you would need to continue trading until your largest day is below 35%.
Why do we have it?
Implementing a Consistency Percentage curbs high-risk and unsustainable strategies like going max size before a news event. The Consistency Percentage discourages traders from engaging in excessive risk taking for fast, windfall profits.