For 1-step Nitro accounts, there’s a consistency rule that applies to both the Challenge Phase and Simulated Funded Phase
Why this Rule?
Funded Trader Markets’ Consistency Rule promotes steady profit growth and helps traders avoid emotional trading.
Important Details About the Consistency Rule For Evaluation Accounts
In the Challenge Phase; you should not make more than 50% (i.e. half) of the profit target in one day.
In the Simulated Funded Phase; you should not have made more than 45% of the total profit in one day.
If a single day’s profit is more than 50% of your profit target in the Challenge Phase or more than 45% of your total profit in the Simulated Funded Phase, you have to continue trading until there isn’t a day with more than the above said maximums.
When is the Consistency Rule Required?
For evaluation accounts, it applies to both the Challenge Phase and Simulated Funded Phase
Calculation
[Best Day % of Total Profit] = [Best Day Profit] ÷ [Overall Profit] * 100
Best Day Profit means the highest single day profit
Single Day’s Profit = Balance at 5pm EST Today – Balance at 5pm EST Yesterday
Example (Simulated Funded Phase)
If you made a total profit of $5,000 in the Simulated Funded Phase,
To be eligible for withdrawal, there should not have been a single day with more than 45% of $5,000 (= $2,250).
If there is a single day with more than 45% of total profit, then you have to keep on trading until the best day profit is less than 45% of the total profit.
Example (Challenge Phase)
For a $10,000 1-step Nitro account with a Phase 1 profit target of $1000 (10%), no single day’s profit should exceed $500 (50% of the target) to stay within the consistency rule.
If you achieve a $1000 total profit but make more than $500 in a single day, you are required to continue trading until the best day profit is less than 50% of the total profit.
Success requires devising a strategy that prevents exceeding a $500 daily profit.
By adhering to these guidelines, traders can foster a disciplined and sustainable trading approach, crucial for long-term success.
