The 50% consistency rule ensures you demonstrate consistent profitability to pass your Starter (Challenge) account. You need at least 2 trading days that meet the consistency requirement.
The Rule: Each profitable trading day out of the required two days must be lower than 50% of your total PnL.
$50K Account Example
Trading Results:
Day 1: +$1,800
Day 2: -$300 (Day 2 won’t count because it is not a profitable day)
Day 3: +$930
Calculation:
Total profitable days: 2 days
Total profit: $2,730
Find the 50% threshold: 50% of $2,730 = $1,365
This means that $1,365 is the threshold that all your profitable days have to be below to count towards passing. Any days with profits above this amount will not work.
So what happens here in my case where one day I made above the threshold?
When that happens, you need to trade more days and make more profit to balance things out. For example:
Day 4: +$1,600
Now your total profit is: $4,330
50% threshold (now increased due to Day 4's profits): $2,165
So now, by making more money, you increase the threshold, so your Day 1 profit of $1,800 is now eligible for payout! So, you can now pass and get a payout.