If you are exploring the world of prop trading or simulated trading accounts, you have probably come across the term consistency rule. It is one of those phrases that can sound intimidating at first, but it is actually quite straightforward once you understand it.
As a professional trader who works with TradingFunds, I rely on consistency rules every day to track my performance, manage risk, and ultimately secure larger capital allocations. In this article, I will break down exactly what a consistency rule is, how to calculate it, and why it matters — using simple, clear language. By the end, you will see how mastering this rule can help you become a more disciplined and successful trader.
What is a consistency rule?
The consistency rule is a guideline many prop firms use to ensure traders are not relying on just one or two huge trades to meet their targets. Instead, it encourages steady, repeatable performance.
In simple terms, it measures how evenly your profits are spread out across your trading days. It shows if your gains are consistent, or if they are coming from just a couple of outsized wins.
For example, imagine two traders both hit an 8% profit target over 10 days.
- Trader A makes roughly 0.8% per day.
- Trader B makes 7.5% in a single day, and tiny profits on the others.
Most prop firms prefer Trader A, because it shows controlled, repeatable skill — not just luck on one big day.
Why is consistency important?
Consistency rules protect both the firm and the trader. Here is why:
- Reduces risk: If most profits come from one big trade, it might be luck. That could mean more risk for the firm’s capital later.
- Shows true skill: Consistent gains prove a trader can follow a system and perform under different market conditions.
- Better scaling opportunities: Firms like TradingFunds often reward steady performance with higher funding levels.
Prepares you for long-term success: Consistency is the foundation of professional trading. It helps avoid emotional swings and revenge trading.
So how do you calculate the consistency rule?
Every prop firm calculates this slightly differently. But here is the most common way, and it is very close to how we use it at TradingFunds.
Step 1: Identify your top trading day profit
Look back over your evaluation period or recent trading days. Find your highest single day’s profit (in dollars or percent).
Step 2: Divide this by your total profits
Take that top day and divide it by your total profit across the period. This gives you the percentage of your profits that came from your biggest day.
Step 3: Compare to the allowed threshold
Most firms set a maximum percentage your biggest day can contribute. For example, TradingFunds uses levels from 20% to 40%, depending on your account and payout scale. If your biggest day makes up more than that of your total profits, you may fail the consistency rule.
Example: Calculating consistency
Let me give you a realistic, simple example.
Say over 10 days of trading, your daily profits were:
|
Day |
Profit (%) |
|
1 |
0.5 |
|
2 |
0.6 |
|
3 |
0.7 |
|
4 |
1.0 |
|
5 |
0.8 |
|
6 |
0.9 |
|
7 |
0.6 |
|
8 |
0.7 |
|
9 |
0.5 |
|
10 |
1.2 |
Total profit: 7.5%
Largest day: 1.2%
Now divide:
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1.2% (largest day) ÷ 7.5% (total) = 0.16 = 16%
That means your top day was responsible for 16% of your overall profits. If your consistency threshold was 20%, you would pass easily.
But imagine you had one monster day of 5%, and the rest were small, adding up to 7.5%. Then:
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5% ÷ 7.5% = 0.6667 = 67%
This would exceed most consistency rules, meaning your gains are too concentrated.
Is this fair? Or just another hurdle?
I know some traders get frustrated with consistency rules. It can feel like an extra hoop to jump through. But as a professional, I see it as a powerful tool.
It forces me to avoid the “all in” mindset. I have to trade methodically, follow my plan, and not rely on one jackpot day. Over time, this builds stronger habits — and it is exactly why prop firms like TradingFunds use it. They want traders who can keep delivering.
How to improve your consistency
If you struggle with consistency rules, try these tips that I use myself:
Use fixed risk per trade — risking the same fraction of your capital on each trade prevents one day from ballooning.
Journal everything — track which strategies give smooth results vs. which cause spikes.
Trade your edge only — avoid revenge trades or chasing the market.
Limit trade sizes — if you size up dramatically, it can create a huge outlier day.
Aim for daily goals — small, repeated wins add up and keep your curve smooth.
Why TradingFunds consistency levels make sense
With TradingFunds, we have a unique 6-level payout scale that gradually increases your consistency allowance from 20% up to 40%. This means if you want the highest profit splits (up to 90%), your trading style needs to be more balanced.
I appreciate this because it rewards real skill and not just luck. And if you prefer to take larger shots, you can still earn payouts at the lower levels with more flexibility. It is a smart system that gives every trader a place.
Final thoughts: Consistency is the mark of a pro
If you want to thrive with a prop firm or on a simulated trading account, learning how to calculate and respect the consistency rule is essential. It is not just a box to tick. It is proof you can manage risk, control emotions, and build a track record that scales.
By calculating your own consistency percentage (top day divided by total profits), you can stay ahead of any rule. Even more importantly, it trains you to think like a professional. That is where real long-term success in trading lives.
Ready to trade like a pro?
At TradingFunds, we offer powerful tools and a clear path to scale up to $600K with payouts starting from just two trading days. If you want to put your consistency to the test — and get rewarded for it — check out our programs today.
Start building your consistency. Start building your future.