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CONSISTENCY RULE

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CONSISTENCY RULE

The Consistency Rule is a crucial criterion for successfully completing the Prop Scholar Evaluation Account challenge and plays a pivotal role in showcasing sustained and disciplined trading behavior. This rule mandates that no single trading day’s profit should exceed 45% of the total accumulated profit throughout the entire evaluation period.

Why is the Consistency Rule Important?


Trading is a long-term endeavor that requires not only skill but also patience, emotional control, and strategic risk management. Many traders, especially those new to the field, may be tempted to pursue rapid profits, driven by the allure of quick gains. However, this approach often relies more on luck than skill, leading to higher risks and potential losses.

The Consistency Rule is designed to counteract this temptation. By capping the proportion of profit that any single trading day can contribute, the rule encourages a measured and balanced approach to trading. This helps traders focus on steady, reliable performance over time rather than chasing sporadic bursts of high returns.

The Rationale Behind the Consistency Rule

The primary purpose of the Consistency Rule is to promote and reinforce disciplined trading habits. A trading strategy that follows this rule fosters:

  1. Patience: Encouraging traders to gradually build profits instead of seeking immediate, high returns.
  2. Emotional Control: Reducing the temptation to make impulsive decisions or take on excessive risks for quick gains.
  3. Risk Management: Promoting a balanced approach to trading, minimizing the potential for large losses.
  4. Sustainable Growth: Guiding traders towards consistent, incremental progress, which is more likely to lead to long-term profitability.

Implementing the Consistency Rule

By adhering to the Consistency Rule, traders are better positioned to develop a robust trading discipline aligned with best practices for long-term success. This rule is not just a requirement but a strategic tool that ensures traders focus on sustainable performance and effective risk management.

The Consistency Rule helps shape habits that contribute to enduring success, prioritizing a stable approach over the lure of short-term gains. Traders who follow this rule achieve more reliable growth and build a resilient trading strategy that enhances profitability.


How to Calculate the Consistency Rule


The Consistency Score is calculated as follows:

(Biggest winning day / Current account profit) * 100%

For example, if your account size is $100,000 and you consistently earn daily profits, let’s say $3,500 on the first day, $4,000 on the second day, and $2,500 on the third day. This brings your total profit to $10,000. According to the Prop Scholar model, the maximum profit you can earn in one day is 45% of your total profit, which is $4,500. Therefore, you are successfully following the 45% Consistency Rule in this case.