There is no consistency rule on the challenge phase. However in the simulated funded stage there is a 50% consistency rule. The 50% consistency rule during the simulated funded stage means that the profits from one trading day can not be greater than 50% of total profits made.
You CANNOT WITHDRAW any of your profits if any trading day made more than 50% of the total profits. If you exceed this the account will not be breached, but you will have to trade and make more profits until you have made in each of your trading days less than 50% of total profits made.
Example 1:
Assumptions:
Account Size: $100,000
Total Profit over 7 Days: $10,000
50% Threshold: $5,000 (50% of $10,000)
Daily Profits:
Day 1: $1,500
Day 2: $2,000
Day 3: $1,000
Day 4: $2,500
Day 5: $1,000
Day 6: $1,000
Day 7: $1,000
Total Profits: $10,000
In this sample, no single day’s profit exceeds $5,000, so the trader complies with the 50% consistency rule.
Example 2:
Assumptions:
Account Size: $100,000
Total Profit over 12 Days: $10,000
50% Threshold: $5,000 (50% of $10,000)
Daily Profits:
Day 1: $1,500
Day 2: $2,000 (Cumulative: $3,500)
Day 3: -$1,000 (Cumulative: $2,500)
Day 4: $2,500 (Cumulative: $5,000)
Day 5: -$500 (Cumulative: $4,500)
Day 6: $1,000 (Cumulative: $5,500)
Day 7: $500 (Cumulative: $6,000)
Day 8: $1,000 (Cumulative: $7,000)
Day 9: -$1,000 (Cumulative: $6,000)
Day 10: $2,500 (Cumulative: $8,500)
Day 11: $0 (Cumulative: $8,500)
Day 12: $1,500 (Cumulative: $10,000)
Cumulative Total Profits: $10,000
Analysis:
Profit Days: Days 1, 2, 4, 6, 7, 8, 10, 12
Loss Days: Days 3, 5, 9
No Profit/No Loss Day: Day 11
Highest Profit Day: $2,500 (Days 4 and 10)
50% Threshold: $5,000 (No single day’s profit exceeds this amount)
Explanation:
In this example, the user has a mix of profitable and losing days but still achieves a total profit of $10,000 over 12 days. The highest profit in a single day is $2,500, which is well below the 50% threshold of $5,000. Therefore, the user complies with the 50% consistency rule and can request a withdrawal.
Not meeting the 50% consistency rule will not terminate/breach your account. However you will have to trade and make more profits until the 50% consistency rule is respected in order to be able to withdraw your profits.
Also, please note that the consistency rule will reset after every withdrawal.
How We Calculate Daily Profits:
We calculate the profits made in a day based on the change in your account equity from one day to the next. Here’s how it works:
1. Equity at the Start of the Day (Day 1):
This is the total value of your account at the beginning of the day. It includes your balance and any unrealized profits or losses from open positions.
2. Equity at the End of the Day (Day 1):
This is the total value of your account at the end of the day, after all
trades have been accounted for, including both realized and unrealized gains or losses.
Steps to Calculate Daily Profit:
1. Determine Day 1 Equity:
• Check the equity at the end of the trading day on Day 1.
2. Determine Day 2 Equity:
• Check the equity at the end of the trading day on Day 2.
3. Calculate the Difference:
• Subtract the equity at the end of Day 1 from the equity at the end of Day
Formula:
Daily Profit = Equity at the End of Day 2 - Equity at the End of Day 1
Example:
• Equity at the End of Day 1: $100,000
• Equity at the End of Day 2: $103,000
Daily Profit Calculation:
Daily Profit = $103,000 - $100,000 = $3,000
Please note that the start and end of the trading day is at the rollover time, which is 5:00 PM EST.
Disclaimer:
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