Consistency Rule Explained

The Consistency Rule is designed to encourage stable and consistent trading performance. It means that your best trading day cannot account for more than the allowed consistency percentage of your total profits when you request a payout or scale-up.

Depending on your account type or region, the consistency percentage may be different. Some accounts may have a 30% Consistency Rule, while others may have a 50% Consistency Rule or another percentage.
The examples below are mainly based on the 50% Consistency Rule, but the same calculation method applies to other consistency percentages as well.

Does the Consistency Rule limit how much profit I can make in one day?

No. The Consistency Rule does not limit how much profit you can make in a single day. You can make any amount of profit in one day. However, if one trading day becomes too large compared to your total profits, you may need to continue trading until your overall profit increases enough for that day to fall within the allowed consistency percentage.
Your account is not failed just because your best trading day is above the consistency percentage. It only means you are not eligible for a payout or scale-up yet.

How is the Consistency Rule calculated?

The basic formula is:

Best trading day ÷ Total profits × 100 = Consistency percentage

To meet the rule, your best trading day must be equal to or lower than the allowed percentage.
For example, if your account has a 50% Consistency Rule, your best trading day must not be more than 50% of your total profits.

Example based on the 50% Consistency Rule

This means that if your best trading day is $1,500, your total profit must be at least $3,000 for that day to represent 50% or less of your total profits.
If your total profit is only $1,500 and all of it came from one day, you are not eligible yet. You would need to continue trading and increase your total profits.

Example based on the 30% Consistency Rule

This means that if your best trading day is $1,500, your total profit must be at least $5,000 for that day to represent 30% or less of your total profits.

Is the Consistency Rule calculated based on net profit?

No. The Consistency Rule is calculated based on accumulated profitable trades, not net daily profit.
This means that for the consistency calculation, only profitable trades are added. Losing trades are not deducted from the consistency P&L.

Example: Winning and losing trades on the same day
Let’s say a trader has the following trades in one day:
Trade 1: +$1,000
Trade 2: +$500
Trade 3: -$300
Trade 4: +$200
For normal net P&L, the calculation would be:
$1,000 + $500 – $300 + $200 = $1,400
However, for the consistency calculation, only profitable trades are counted:

$1,000 + $500 + $200 = $1,700

So, the consistency P&L for that day will be $1,700, not $1,400.
This is because losing trades are not deducted when calculating the daily consistency P&L.

Why does my consistency P&L look higher than my actual daily net profit?

Your consistency P&L may look higher than your normal daily net profit because the consistency rule is based on accumulated profitable trades only.

Example:

In this case, your actual net profit is $1,200, but your consistency P&L will show $2,000, because the losing trades are not deducted from the consistency calculation.

What happens if my best trading day is above the allowed percentage?

Your account does not fail.
It simply means you are not eligible for a payout or scale-up yet. You need to continue trading and increase your total profits until your best trading day becomes equal to or lower than the allowed consistency percentage.

Example based on the 50% rule:

Since 68.96% is higher than 50%, the trader does not meet the rule yet.
Required total profit: $2,000 ÷ 50% = $4,000
So, the trader needs to increase total profits to at least $4,000 for the best trading day to represent 50% or less.

What happens after I make more profit?

Using the same example:

Now the trader meets the 50% Consistency Rule.

Does the Consistency Rule apply to account balance or account size?

No. The consistency percentage is not calculated based on your account size or account balance. It is calculated based on your profits.

For example, if you have a $100K account, the 50% rule does not mean you can only make 50% of the account size in one day.
It means your best trading day cannot represent more than 50% of the total profits you are trying to withdraw or use for scale-up eligibility.

Example
If your account has a 50% Consistency Rule:

If your total profit is below $10,000, you need to continue trading until your total profit reaches the required amount.