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What Is the Consistency Rule?

Learn how the Consistency Rule works, Payout eligibility, Partial trade PNL is counted when closing trades in parts.

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.
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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?

If you open a large position and close it in partials, the full profit or loss from that position will count on the trading day when the entire position is fully closed. This means that the PNL from partial closes is not split across the different days when each partial close takes place.
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For consistency rule purposes, the full PNL of the position is counted on the day the final part of the trade is closed.


Example of Partial Trade Calculation

If you open one large trade and close part of it on Monday, another part on Tuesday, and the final part on Wednesday, the full PNL from that trade will be counted on Wednesday.
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Wednesday will be the trading day used for the Consistency Rule calculation because that is the day the full trade was completely closed.

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