How it works in a typical version: if the profit target is 10,000 and one day made 5,000, that day is 50% of profit, above a 40% limit. The trader must keep trading until other days bring the share below the limit.
Why firms use it: to filter out lucky single trades or gambling on news.
What it means for strategy:
- Big news days that produce outsize profits can delay a payout.
- Steady daily results fit the rule better than occasional large wins.
- Position size should be consistent; doubling up on a good day makes it worse.
Read the exact wording. Some firms apply it only to the funded stage, some to the challenge, some to payouts.
Has a consistency rule affected you?