What Is the Consistency Rule?
Updated
Why Do We Have a Consistency Rule?
The Consistency Rule is designed to encourage steady and sustainable trading performance. It helps ensure that traders are not relying on one unusually large trading day.
What Is the Consistency Rule?
The Consistency Rule means that no single trading day can account for X% or more of your total profits during the payout period.
The consistency percentage may vary depending on the challenge or funding model.
You can check whether your challenge has a Consistency Rule in our detailed model FAQs: https://help.goatfundedtrader.com/en/collections/11811982-models
Example
For example, if the Consistency Rule is 15% and your highest profit day should not exceed 15% of the total profit earned.
If your total profit earned is $5000, your highest trading day should not exceed (5000 X 15% ) = $750.
What Happens If I Do Not Meet the Consistency Rule?
Not meeting the Consistency Rule will not result in account termination or an account breach. However, you will not be able to request a payout until your highest profit day is below X% of your total profits for the payout period.
What Should I Do Next?
You should continue trading and generating profits until your highest profit day represents less than X% of your total profits.
Keep in mind that in order to decrease the consistency %, your max profit should be less than your current highest trading day.
How Are Partial Trades Counted for the Consistency Rule?
Each partial close counts on the trading day it happens. If you close one position in several parts on different days, the profit or loss from each part goes to the day that part was closed, and the consistency check uses those daily figures. No single day carries the whole trade.
Example of Partial Trade Calculation
You open one large trade and close a third on Monday, a third on Tuesday and the rest on Wednesday. Monday's part counts toward Monday's profit, Tuesday's toward Tuesday, Wednesday's toward Wednesday.
Trading days run 5 PM to 5 PM EST, so a partial close at 6 PM EST on Monday counts toward Tuesday's trading day.