Is there a consistency rule? | Funding Traders | Help Center (2024)

Yes, but this is different from lot size restrictions (which we don't have)

This only applies to the consistency of risk applied per trade expression, also known as position sizing. This means that your risk per trade must remain consistent. The main reason for this rule is to prevent traders from significantly causing wide swings to the funded accounts.

It has been a common practice in the prop firm space to increase risk when they are either on a winning or losing streak. We have had many traders going "all-in" by risking more than 2% on one trade idea. This practice is risky and can be considered gambling. Applying consistent position sizing enforces sustainable and disciplined execution principles to our traders - which is what we need.

As a prop firm, we want our equity curve to be as smooth as possible. Having large swings just because of one trade idea going wrong is an unnecessary risk that could be avoided. As much as going "all in" on a trade can go well, it also has the chance of going very wrong.

In short, we don't allow sudden increases in position sizing to avoid:

  • Large swings in the equity curve

  • Higher risk of ruin when affected by news events/black swan events

  • Gambling characteristics

To place a hard and clear line for traders to follow, here are the guidelines:

Trade Idea Example

Single Trade Idea:

  • Open GOLD BUY > Open GOLD BUY > Open GOLD BUY
    It is considered as single trade idea because the trades are on the same asset, direction and are all floating at the same time.

Multiple Trade Ideas:

  • Open GOLD BUY > Open GBPJPY SELL > Open AUDUSD SELL
    It is considered as multiple trade ideas because the trades are on different assets and direction.

Consistency Rule Representation:

  • Allowed:

    1. Open GOLD BUY (2% risk/loss) > Close trade > Open GOLD BUY (2% risk/loss) > Close trade

      • 2% risk/loss on single trade idea.

    2. Open GOLD BUY (2% risk/loss) > Open AUDUSD BUY (2% risk/loss) > Open GBPJPY SELL (2% risk/loss) > Close trade

      • 2% risk/loss(each) on multiple trade ideas.

    3. Open GOLD BUY (1% risk/loss) > Open GOLD BUY (1% risk/loss) > Close trade

      • 2% risk/loss on single trade idea.

  • Not allowed:

    1. Open GOLD BUY (2% risk/loss) > Open GOLD BUY (2% risk/loss) > Close trade

      • 4% risk/loss on single trade idea.

Principles:

  • Protect the company's funds from excessive swings in the equity curve

  • Instill discipline and consistency in the trader's execution

  • Allow traders' edge to play out longer by reducing the risk of ruin

FundingTraders is on the hunt for traders that we can have a long-term win-win relationship with. We are not looking to fund just anyone. We're only backing traders that pass the evaluations and showcase a great understanding of risk management and trade executions.

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Is there a consistency rule? | Funding Traders | Help Center (2024)

FAQs

Is there a consistency rule? | Funding Traders | Help Center? ›

Yes, but this is different from lot size restrictions (which we don't have) This only applies to the consistency of risk applied per trade expression, also known as position sizing. This means that your risk per trade must remain consistent.

What is the 60% rule in FunderPro? ›

Consistency is Key: The 60% Rule

Rule is: No single-day profit should be more than 60% of the total challenge account profits.

What is the consistency rule for funding traders? ›

The 40% consistency rule during the simulated funded stage means that the profits from one trading day can not equal or be greater than 40% of total profits made.

What is the 45% consistency rule? ›

Consistency Rule Explained

By keeping your most profitable day below 45% of your total profits, you can better balance your RRR (risk-reward ratio) and develop a more sustainable trading strategy. This rule also helps FunderPro find the best pro traders to fund.

What is the 2% rule in Fundingtraders? ›

The 2% rule is a risk management principle that advises investors to limit the amount of capital they risk on any single trade or investment to no more than 2% of their total trading capital. This means that if a trade goes against them, the maximum loss incurred would be 2% of their total trading capital.

How does FunderPro pay out? ›

You can withdraw your profits in USDT ERC20 directly into your wallet. Once you have requested your payout, we will review the request and aim to process it as soon as possible (on average it takes less than 8 hours).

Does FTMo have consistency rules? ›

FTMO values traders who can maintain a consistent approach in addition to profits. A great benefit for consistent traders is our Scaling plan as well as the adjustment of the profit sharing ratio to 90% in favour of the trader.

What is the most consistent trading strategy? ›

Profit Parabolic” trading strategy based on a Moving Average. The strategy is referred to as a universal one, and it is often recommended as the best Forex strategy for consistent profits. It employs the standard MT4 indicators, EMAs (exponential moving averages), and Parabolic SAR that serves as a confirmation tool.

What is the trick to Consistency? ›

In order to become more consistent, you have to set clear goals that you want to work towards. You can start by listing all of them in a notebook or a piece of paper. Then, evaluate those goals and try to formulate a plan on how best to achieve them.

What is Consistency formula? ›

If T is a theory and A is an additional axiom, T + A is said to be consistent relative to T (or simply that A is consistent with T) if it can be proved that if T is consistent then T + A is consistent. If both A and ¬A are consistent with T, then A is said to be independent of T.

What is the Consistency rule? ›

This means that your risk per trade must remain consistent. The main reason for this rule is to prevent traders from significantly causing wide swings to the funded accounts. It has been a common practice in the prop firm space to increase risk when they are either on a winning or losing streak.

What is the $2.50 rule? ›

The $2.50 rule is a rule that affects short sellers. It basically means if you short a stock trading under $1, it doesn't matter how much each share is — you still have to put up $2.50 per share of buying power.

What is the 30 second rule in FundedNext? ›

One of the precautionary rules that FundedNext introduced during the launch, the 30 Seconds Rule. The rule entails : “If a trader placed multiple trades with hugely varying lot sizes within 30 seconds, it would have been considered a violation in suspicion of trying to beat the system in malicious ways. “

Is the 2 rule realistic? ›

It's not an accurate metric of a potential investment's performance. Think of any “percent rule” as a guideline for further exploration. It's important to note that while real estate investing has many significant advantages for building passive income, cash flow is key to your success.

What is the maximum account size for FunderPro? ›

To summarize, you can buy accounts until you reach a maximum of $200k total starting equity of all accounts combined. That said, you can scale up your capital as far as $5 million on all accounts by staying profitable.

How much does FunderPro cost? ›

FunderPro offers four tiers of funded account challenges: a $25K balance costs $250, a $50K balance costs $300, a $100K balance costs $550, and a $200K balance costs $995. Scaling plan up to $5 million. 🚀 Profit split: The FunderPro funded account challenge pays out 80% of the profits.

Does FunderPro accept US clients? ›

Short answer: Yes, FunderPro is still accepting US traders.

One major issue in the industry at the moment is for US-based traders.

How to get a free prop firm account? ›

You can win free accounts by completing simple tasks, such as following, liking, subscribing, or referring others. In conclusion, you can get a free funded account by simply entering trading competitions, or participating in giveaways.

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