Consistency Rule

Written by RWC Capital Funding
Updated 4 weeks ago

Definition:
The consistency rule states that no single day or individual trade can account for more than 30% of the profits that will later be withdrawn.
Its purpose is to ensure that profits come from consistent and sustainable performance, rather than one oversized trade being responsible for most of the gains.

Explanation:

  • It is applied to the total withdrawal amount requested.

  • If a trader wants to withdraw, for example, $1,000 in profits, no single day or trade can exceed $300 (30%).

  • This ensures that profits have been generated through steady trading performance, and not from a single high-risk position.

  • The rule promotes a professional trading style, similar to what is required by institutional investment firms.

Example 1 (rule respected):

  • Initial balance: $10,000

  • Total profit: $1,000

  • Withdrawal request: $1,000

  • The trader had 5 trading days:

    • Day 1: +$150

    • Day 2: +$200

    • Day 3: +$250

    • Day 4: +$200

    • Day 5: +$200

👉 No single day exceeds 30% of the total ($300), so the consistency rule is respected and the withdrawal is approved.

Example 2 (rule violated):

  • Initial balance: $10,000

  • Total profit: $1,000

  • Withdrawal request: $1,000

  • The trader had 3 trading days:

    • Day 1: +$700

    • Day 2: +$200

    • Day 3: +$100

👉 In this case, Day 1 represents 70% of the total profits, which breaks the consistency rule (maximum allowed: 30%). The withdrawal will not be approved.

In summary:

  • The consistency rule is 30%.

  • No day or trade may represent more than 30% of the total withdrawal amount.

  • It ensures traders maintain a disciplined, consistent, and professional performance, reducing the risk of depending on a single oversized trade.

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