The Consistency Rule in FunderPro is designed to ensure you achieve steady and sustainable profits while effectively managing risk. The rule states that the earnings of your best trading day should not exceed 45% of your total profits.
The Consistency Rule applies during all Phases of all Challenge types. It does not apply to live Funded Accounts.
Why is the Consistency Rule Important?
FunderPro's Consistency Rule aids in the cultivation of consistent profits and the avoidance of emotion-driven trading. By ensuring your most profitable day falls below 45% of your overall profits, you can better manage your risk-reward ratio (RRR) and develop a more sustainable trading approach. This rule assists FunderPro in identifying the top professional traders to fund.
Important Details About the Consistency Rule
The system will take a daily snapshot at 5pm EST to calculate the Consistency Rule. The snapshot looks at the equity of the account. This means that floating profits from open trades will also be counted for the day. If you have a position open for 2 days, on day 1 it goes up $1k in profits and then he closes it on day 2 with $2k "total" profit, for the consistency rule this would be $1k on day 1 and $1k on day 2.
If your day starts in drawdown, any profits will count towards the Consistency Rule. However, if you go in drawdown and recover it within the same day, those profits will not count towards the Consistency Rule. Practical example with a $100 Challenge Account:
- If you open the day $2k in drawdown with $98k and close the day at $101k, the whole $3k profit will count towards the Consistency Rule
- If you start the day at $100k, go down to $98k and then close the day at $101k only $1k will count towards the Consistency Rule
The Consistency Rule and Free Trials
Although the Consistency Rule does not directly apply to Free Trials, if you convert your Free Trial into a Challenge, the best day from your Trial will influence the Consistency Percentage of your Challenge.
This is because by converting you are carrying on with the same account as the Free Trial, which is subject to the same rules as the Challenge.
In other words, when taking a free trial, make sure that you best day is still less than 45% of the Challenge's profit target.
Example:
- You start a $100k Free Trial
- You make $10k in one day and convert
- Your Challenge starts at $105k (you carried over the max 5%)
- Your trading log also carries over and it will figure that your best day has been $10k, more than twice what's allowed by the consistency rule.
When is the Consistency Rule required and how is it calculated?
The Consistency Rule applies to all Phases of all Funded Account Challenges. Here, you have the chance to demonstrate your ability to manage risk effectively and build consistent success.
The calculation is as follows: Best Day Profit ÷ Overall Profit = Best Day % of Total Profit
Let's illustrate this with a new example:
Imagine a $25,000 account with a Phase 2 profit target of $2,000 (8%). The daily profit should never exceed $900, which is 45% of the profit target. Consider this scenario:
- You reach your target and make a total profit of $2,000.
- You earn a $1,200 profit in a single day.
Result: You do not pass the Challenge.
To succeed, you should devise a strategy that prevents you from exceeding a $900 daily profit. Once you reach a total profit of $2,000, you will pass the Challenge as you have demonstrated that you can profit consistently without relying on risky large trades.
Here is another example taking into consideration multiple trading days in the challenge:
5 trading days with the following results, day-by-day:
- +$1,000
- -$500
- +$2,000
- +$750
- -$250
$2,000 / $3,000 * 100 = ~0.667 * 100 = ~66.67% Highest Profit DayWhat is meant by the Recommended Best Day?
Given that your best trading day should remain below 45% of your total profit, we recommend that you set a daily profit target below this threshold. This strategy will help you maintain consistency and lock in daily profits.
Here are examples of recommended best day profits by account size:
| Account Size | Recommended Best Day | ||
|---|---|---|---|
| Phase 1 (10% Profit Target) | Phase 2 (8% Profit Target) | Single Phase (14% Profit Target) | |
| $5k | Less than $225 | Less than $180 | Less than $315 |
| $10k | Less than $450 | Less than $360 | Less than $630 |
| $25k | Less than $1,125 | Less than $900 | Less than $1,575 |
| $50k | Less than $2,250 | Less than $1,800 | Less than $3,150 |
| $100k | Less than $4,500 | Less than $3,600 | Less than $6,300 |
| $150k | Less than $6,750 | Less than $5,400 | Less than $9,450 |
| $200k | Less than $9,000 | Less than $7,200 | Less than $12,600 |