Prop Firm Consistency Rule: Formula and Examples
What the prop firm consistency rule is, the formula behind it, worked examples at 30%, 40% and 50%, why one big day can block a payout and how to plan for it.
A consistency rule limits how much of your total profit can come from your single best day. With a 50% rule, your best day can be at most half of everything you made. Firms use it so that one lucky day can't pass an evaluation or unlock a payout on its own.
The formula
Best day ÷ total profit must stay at or under the limit.
- Best day is your largest single day of profit.
- Total profit is the net of every trading day, losing days included.
- The limit is usually between 30% and 50%, and can differ between the evaluation and the funded account.
Turn it around and it answers the two questions traders actually ask:
- How much total profit do I need? Best day ÷ limit.
- How big can a day be? Total profit × limit.
Worked examples
| Best day | Total profit | Best day share | 30% rule | 40% rule | 50% rule |
|---|---|---|---|---|---|
| $900 | $3,000 | 30% | Pass | Pass | Pass |
| $1,500 | $3,000 | 50% | Needs $5,000 | Needs $3,750 | Pass |
| $2,000 | $3,000 | 67% | Needs $6,667 | Needs $5,000 | Needs $4,000 |
The consistency rule calculator does this for your own numbers.
Why a great day can hurt you
Say your evaluation has a $3,000 profit target and a 40% consistency rule that applies before you pass. You make $2,000 on day one. A great start, except that $2,000 only fits the rule once total profit reaches $5,000 (2,000 ÷ 0.40). Your target just moved from $3,000 to $5,000.
Then you have another big day of $2,500. Now your best day is $2,500 and the profit you need is $6,250. Every big day pushes the finish line further away, which is why traders under a consistency rule often stop for the day once they have made enough.
Losing days make it worse
Losing days lower total profit, so your best day becomes a bigger share. Take a $1,200 best day and winning days that add up to $3,400: the share is 35%. Add one losing day of $600 and total profit drops to $2,800, so the share is now 43%. Under a 40% rule, that one red day turned a pass into a fail.
How to plan for it
- Set a daily profit cap from the rule. With a $3,000 target and a 40% rule, keep each day under $1,200 (3,000 × 0.40). Past that, stop or trade smaller.
- After a big day, add small days, not another big one. You need total profit to catch up with the best day.
- Track the share every day, not at the end. It is much easier to stay under a limit than to climb back under it.
- Read your firm's version. Some count only winning days, some apply the rule to payouts only, and the percentage varies. The math above works the same once you know which numbers they use.
Practice under the rule
Evaluation accounts in ChartTrainer can take a consistency rule next to the profit target, trailing drawdown and daily loss limit, and the rule is checked on every day you trade. It is the cheapest way to learn how the rule changes your habits before an evaluation fee is on the line. Start from the prop firm simulator.
Videos
- Your best day can block your payout (YouTube)
Questions
- What is a 40% consistency rule?
- No single day may be more than 40% of your total profit. With $5,000 of total profit, your best day can be at most $2,000.
- Do losing days count in the consistency rule?
- Yes. Total profit is the net of all your days, so a losing day lowers it and makes your best day a bigger share of it.
- Does the consistency rule apply to the evaluation or to payouts?
- It depends on the firm and the account. Some apply it while you work toward the profit target, others only to payouts from a funded account, and the percentage can differ between the two. Check your firm's current rules.
- What should I do if my best day is too big?
- Keep trading smaller days until your total profit catches up: you need your best day divided by the limit. Another big day raises your best day and pushes the target further away.
- How do I calculate the profit I still need?
- Divide your best day by the limit. A $1,500 best day under a 50% rule needs $3,000 of total profit, under a 40% rule $3,750, and under a 30% rule $5,000.