The Consistency Rule exists to ensure traders demonstrate steady, sustainable performance rather than relying on a single lucky trade to pass a challenge or qualify for payouts.
By limiting how much of your total profit can come from one trading day, the rule helps:
Promote discipline: Encourages traders to build profits gradually instead of depending on oversized or risky positions.
Reduce risk exposure: Prevents strategies that could lead to large drawdowns or account breaches if the market moves unfavorably.
Protect long-term funding: Ensures traders who qualify for funded accounts or payouts have shown the ability to manage risk consistently over time.
In short, the Consistency Rule is in place to protect both the trader and the firm, creating a fair environment where long-term trading skills are rewarded.