Consistency Rule: What It Is and How It Works (2024)

FAQs

How does the consistency rule work? ›

Let's revisit: the Consistency rule states that your total profit in the duration of the challenge should not have a single day with a concentration of 30% or more. In other words, your profits should be spread relatively equally where no single day accounts for 30% or more of the total profit.

The Rule of Consistency is the need to project a consistent image of ourselves, and to repeat activities and opinions which reiterate our coherent identities to others. This heuristic becomes particularly powerful in larger social circles, public spaces, or political contexts.

The rule states that the profits of your best trading day should be no more than 45% of your total profits. The Consistency Rule is enforced during all Phases of every FunderPro Funded Challenge. It does not apply to live Funded Accounts.

33% consistency rule: A single trade should not account for more than 33% of the requested profit. This precaution aims to prevent traders from going “all in” before news events or engaging in risky behavior, encouraging the application of sound risk management.

The Consistency Metric is calculated using the following formula: (1 - (Highest Profit or Loss Day / Absolute Sum of all Trading Days)) x 100%.

Consistency is carrying out something the same way, or something staying the same as it's achieved in a particular way. An example of this could be when we're painting a wall to achieve the same colour and look overall. This creates a uniform look and is overall consistent to create the same colour or design overall.

If rules are consistent, results of disobeying them will be predictable. Enforcement is important. The importance of a rule is learned by consistently having it enforced. A child who is disciplined for throwing the ball in the living room on Monday but not disciplined for the same action on Tuesday will be confused.

The consistency principle states that once a business chooses one accounting method, this method should be used consistently going forward. For example, if you use the cash basis of accounting this should be applied to your cash flow statement, balance sheet, and income statement.

We can calculate consistency using standard deviation and mean of the given date , i.e. Coefficient of Variation =σμ×100. The data having lower coefficient of Variation is more consistent and vice - versa.

What is the law of consistency? ›

In John Maxwell's 15 Laws of Invaluable Growth, he stresses the idea that in order to make significant change, consistency has to be one of the main ingredients. He concluded that “Motivation gets you going, but discipline keeps you growing.”

Put the equations into y = mx + b form and examine the slopes and the intercepts: 1. If the slopes are the same and the y-intercepts are the same, then the lines are the same – the system is dependent and consistent.

What is Normal Consistency Test of Cement? The normal consistency test determines the water content required to achieve a cement paste of standard consistency, which is 25% by weight of the cement. This test evaluates the flow characteristics and the ability of cement to retain its shape.

It just means that you need to trade more, until this single day equals less than 30% of your total profits. Using the same example, if you profit $1,200 in one day, that's 40% of $3,000. You can calculate how much profit you need to maintain consistency by dividing your highest daily profit ($1,200) by 0.3.

30% Consistency

imply continue trading consistently until the 30% profit balance is no longer the case. The 30% rule is NOT a hard and fast rule for consistent traders, trading a defined system, with consistent amount of contracts, trades, trades per day and day to day ongoing consistency.

Consistency: The Cornerstone of Progress

It epitomizes the steadfast commitment to regular action, regardless of external circ*mstances or fleeting motivations. Consistency acts as an invisible force propelling individuals towards their objectives, allowing them to steadily approach their aspirations.

In addition to these rules, you'll also need to meet three requirements to pass: Trade on a minimum of 15 days. Reach the profit target specified by your starting account size. Maintain consistency by trading until no single trading day makes up 30% of your total profit.