What is Consistency Rule?
The consistency rule prevents a single trading day from contributing more than a specified percentage (typically 20-40%) of the total profits in an evaluation or funded period. The rule exists to ensure traders have a genuine repeatable edge rather than one lucky day. Consistency rules are responsible for roughly 25% of all challenge failures, often catching traders who hit a profit target through a single oversized winning trade. Some firms apply the rule only at the moment of payout request, while others enforce it continuously.
Key takeaways
Consistency Rule vs. Evaluation
Two terms that frequently get conflated. Here's how they actually differ.