Consistency Rule - Applies to: SIM FUNDED Accounts Only

TradeShield Consistency Rule

The Consistency Rule is designed to foster steady, disciplined performance among our traders before they can request a payout. This rule ensures that a trader's success is not predicated on a few isolated large trades but rather on a consistent and sustainable approach to the market.

No single day's profit should exceed a pre-defined percentage of the trader's total accumulated profits over a specified period. This mechanism encourages a balanced trading strategy and discourages excessive risk-taking for quick, disproportionate gains.

There is NO Consistency Rule for any of our Evaluation Accounts.

For all our TradeShield SIM-Funded accounts, a 30% Consistency Rule applies for Intraday & EOD Drawdown Accounts, and a 25% Consistency Rule applies for Static Drawdown Accounts.

Calculating Your Required Balance:

To determine the total balance needed to satisfy the Consistency Rule, use the following formula:

Total Balance Needed = Biggest End of Day PnL​
                                  Consistency Percentage

Example: If your highest single-day profit is $1,500, and you're subject to the 30% rule, your required total balance would be calculated as:

$1,500/0.30=$5,000

Therefore, to be eligible for a payout, your total accumulated profits must be at least $5,000 if your largest single-day profit was $1,500.

The implementation of the Consistency Rule is vital for several strategic reasons:

The Consistency Rule acts as a crucial safeguard against relying on isolated, high-risk trades. By spreading profit generation across multiple trading days, you naturally lessen your exposure to significant, single-event losses, fostering a more robust path to long-term account growth.

This rule actively cultivates a more predictable and consistent performance trajectory. It helps smooth out erratic profit spikes and sudden dips, leading to more reliable and sustainable account expansion over time.

The Consistency Rule instills and reinforces essential trading habits. It encourages you to stick to your chosen strategies, manage your positions prudently, and avoid impulsive decisions driven solely by the pursuit of rapid, oversized gains.

The mechanism of the Consistency Rule is straightforward:

No single trading day's profit should exceed 30% of the total profits earned during a payout cycle  in your simulated funded account up to the date you initiate a payout request.

It's important to note that upon approval of a payout, your consistency percentage will reset. This means you'll need to re-establish and maintain the 30% consistency for the period leading up to your subsequent approved payout request.

Consider a trader who has been operating for 12 days in their funded account, adhering to the 30% Consistency Rule.

• Initial Scenario:
  
  
  • Total profits accumulated over the 12 days: $12,000
    
    
  • Highest single-day profit recorded: $4,500 (which represents 37.5% of the total profits, calculated as
    $4,500 / $12,000)
    
    

In this scenario, the trader isn't yet eligible for a payout because their highest single-day profit (37.5%) exceeds the 30% limit. The trader must continue trading to increase their total profits until this ratio falls within the allowable threshold.

• Revised Scenario (after additional trading days):
  
  
  • The trader continues to trade, and after a few more days, their total profits increase.
    
    
  • New total profits: $18,000
    
    
  • Highest single-day profit remains: $4,500 (which now represents 25% of the new total profits, calculated as $4,500 / $18,000)
    
    At this juncture, the trader is now eligible to request a payout. Their highest single-day profit of $4,500 no longer exceeds the 30% consistency limit when compared to their updated total profits.
    
    

Understanding and adhering to the Consistency Rule is key to maximizing your potential as a disciplined and profitable trader within our program.