What is the Consistency Rule?

The Consistency Rule is a risk management requirement that applies to Funded Accounts. It establishes that no single trading day may account for more than 40% of your total accumulated profits (or 50% if you chose the activation fee option). This rule encourages stable and sustainable trading performance rather than relying on one or two exceptional days.

The rule is checked only when you request a withdrawal and resets after each successful withdrawal.

Why Does This Rule Exist?

The Consistency Rule serves several important purposes:

Risk Management: Prevents traders from taking excessive risks to achieve large gains in a single day that may not be sustainable in real market conditions.

Skill Assessment: Demonstrates that your profitability comes from consistent trading ability rather than luck or high-risk gambling approaches.

Capital Protection: Helps ensure funded traders can maintain stable performance with real capital, protecting both the trader and Trade4U's investment.

How is the Consistency Rule Calculated?

The calculation is straightforward:

Formula: (Largest Single Day Profit ÷ Total Accumulated Profits) × 100 = Percentage

Rule: This percentage must be 40% or less (50% with activation fee) to request withdrawals.