What is the consistency rule? The consistency rule is one of the most important and common terms in the Prop Firm market. But how important is the consistency rule in Prop Firm investing? How is this rule applied? What should traders pay attention to in order to apply the consistency rule effectively and achieve the best possible profits? Let’s explore this together with Pfinsight.net in today’s article!
What is the consistency rule in Prop Firms?
According to the consistency rule, independent traders must demonstrate consistent performance before they can request payouts from a funded account or successfully complete a trading challenge to receive capital. The consistency rule states that the profit of each day cannot exceed a certain percentage compared to the total profit over a given time frame. A prop firm may apply this rule, and each company can set its own percentage threshold- or operate without such a rule.
Does the consistency rule affect the trading challenge or the funded account?
The consistency rule can affect funded accounts, trading challenges, or both. This is specified in the terms of each Prop Firm.
In other words, some brokers only use the consistency requirement as a condition that must be met to qualify for a funded account through a paper trading or simulated funding challenge.
Once a trader receives funding, some brokers remove the consistency requirement; however, other brokers keep the rule in place even after the account is funded. In fact, some firms may apply the consistency requirement exclusively to funded accounts.
Why does the consistency rule exist in prop firm investing?
According to brokers, this rule ensures consistent performance, encourages disciplined trading, and supports traders in managing risk.
In an ideal environment, a trader would be extremely consistent, and such traits are real and undeniable.
However, from a practical perspective, this rule also aims to reduce profit payouts. Since a brokerage is a business, cash flow is an important factor to consider. Therefore, a prop firm must establish guidelines to accurately manage its operations, even when policies, processes, and payout amounts have a significant impact on the company’s reputation.
Tips and tricks to satisfy the consistency rule
To pass the Funded Account Challenge and build a long-term trading career, you must master the consistency rule. You can manage risk effectively and follow the guidelines by using the following tips and tricks. By applying these ideas in practice, you can achieve long-term success as a trader and fully unleash your trading potential.
Plan your trade
Take time to structure your trades and set profit targets below the threshold defined by Prop Firms. This will help you maintain consistency and avoid rushed, emotional decisions.
Manage risk effectively
Use appropriate risk management strategies such as diversifying your portfolio and setting stop-loss orders. This can help you maintain steady profits and avoid large losses.
Learn from mistakes and keep a trading journal
Track every trade you make, evaluate your trading performance over time, and most importantly, learn from mistakes. By understanding the reasons behind uneven results, you can gradually improve your trading approach.
Don’t panic
Do not let the urge to compensate for a poor trading day affect your decisions. Take a deep breath, relax, and focus on analyzing what went wrong and why.
Maintain discipline
Stick to your plan and stay disciplined in your trading methods. Planning is useless if you let emotions dictate your actions.
Consistency rule of some leading Prop Firms
Consistency rule of WeMasterTrade
The consistency rule of WeMasterTrade is designed to ensure traders trade regularly and do not rely on one or just a few “lucky” trades to make profits. WeMasterTrade sets a limit of 20 – 30%, meaning that if you want to qualify for payouts (profit withdrawals), your best profit day should not exceed 20–30% of your total accumulated profit.
For example: if your total profit for the month is $10,000, then your largest profit day should only range between $2,000 and $3,000. If you suddenly exceed this threshold in one day, the system may reject your withdrawal request.
This consistency rule aims to encourage traders to follow a stable, methodical, and sustainable trading style instead of relying on a small number of big trades to pass challenges or hit profit targets. Since this regulation helps minimize risks for the company and ensures that traders truly have the ability to manage capital, it is widely adopted by many Prop Firms and financial institutions. In the case of WeMasterTrade, the majority of the trading community confirms that the common standard is 20 – 30%, even though no official document specifies the exact figure.
This implies that if you trade with WeMasterTrade, you should distribute your profits reasonably across different trading days to avoid making “too much” in a single day. Instead, stability, regular trading, and a steadily rising equity curve should be your top priorities. Following the consistency rule will increase your chances of securing payouts and building a long-term partnership with WeMasterTrade.
Consistency rule of Topstep
Your best trading day, also called your largest winning day, must not exceed 50% of total profits in order to pass a Topstep Trading Combine.
For this broker’s challenges, Topstep only applies the consistency rule. Once you are funded (with a Fast-Track Funded Account or a Live Funded Account), there is no consistency requirement in effect, which is highly beneficial since it does not restrict your payouts.
Consistency rule of Take Profit Trader
To pass a Take Profit Trader futures account challenge, your best trading day (largest winning day) must not exceed 50% of your total gains.
For the firm’s challenges, Take Profit Trader applies only the consistency rule. Once you become funded (with a Pro Account), there is no consistency requirement in force, which is advantageous since it does not limit your payouts.
Earn2Trade consistency rule
Your best trading day, also known as the greatest winning day, must not exceed 30% of your profits in order to pass an Earn2Trade exam.
At Earn2Trade, the consistency rule is applied only to the trading exams. Once you are funded (with a LiveSim Account or a Live Account), there is no consistency rule in force, which is beneficial since it does not restrict your payouts.
Conclusion
Through this article, we hope you now understand what the consistency rule is as well as the specific consistency rule requirements at some of today’s leading Prop Firms. Don’t forget to visit our website for more valuable information! Wishing all traders success!