FunderPro Consitency Rule Explained in Detail
Understanding FunderPro’s Consistency Rule: A Key to Successful Trading
What is the FunderPro Consistency Rule?
The FunderPro Consistency Rule applies during all phases of FunderPro’s evaluation challenges, but not to live funded accounts. The rule dictates that a trader’s best trading day should not exceed 45% of their total profits during the current challenge phase. This means that to pass the challenge and receive a funded account, your trading activity needs to be evenly distributed. This can be across different trading days rather than concentrated in one or two exceptionally good days.
For instance, if you are in a $100,000 challenge with a profit target of $10,000. Your best trading day should not exceed $4,500. This approach encourages traders to adopt a balanced trading strategy and avoid risking too much in a single trade, thereby promoting consistent growth.
How the FunderPro Consistency Score is Calculated
The Consistency Score is updated daily at 5:00 p.m. EST and is calculated based on the trader’s overall maximum profit in relation to their best trading day. It provides a quantitative measure of a trader’s consistency in generating profits. If a trader’s best day accounts for more than 45% of their total profits, they must continue trading until their consistency score falls below this threshold.
For example, if the maximum profit achieved during a $100,000 challenge is $10,000 and your best trading day is $4,500, your consistency score would be exactly 45%.
To pass the challenge, you need to ensure that your best trading day remains below 45% of your total profits.
Watch the full FunderPro video here which explains the consistency rule in full detail.
Why is the FunderPro Consistency Rule Important?
- Promotes Balanced Trading: By capping the profit that can be earned on a single day relative to the overall target. The rule ensures that traders do not rely on luck or a few large trades to pass the challenge. This encourages the development of a consistent trading approach.
- Risk Management: It prevents traders from taking excessive risks on single trades. If a trader attempts to meet the profit target in one or two large trades. They may achieve the target but fail the consistency check. This rule pushes traders to spread their risk over a series of smaller, more manageable trades.
- Enhances Discipline: The consistency rule instils discipline, a critical trait for any successful trader. It encourages traders to stick to their trading plans, manage their emotions, and make calculated decisions based on market conditions rather than chasing quick profits.
- Sustainable Growth: Consistency in trading results leads to sustainable growth. Traders who follow the consistency rule are more likely to develop strategies that yield steady, reliable returns, a vital component for long-term success in trading.
- Day 1: A trader in a $100,000 challenge makes a profit of $2,750. Their account equity is now $102,750, and their consistency score is 27.5%.
- Day 2: They make an additional profit of $3,000, bringing the account equity to $105,750, with a consistency score of 30%.
- Day 3: They earn $4,500, reaching the profit target of $10,000 with an account equity of $110,250 and a consistency score of 43.9%. This score is below the 45% threshold, so they pass the challenge.