Absolutely, our operations are guided by rules centered on consistency. These regulations are designed to confirm our collaboration with genuine traders who consistently implement effective risk management and strategic approaches to their accounts. As an institution, it is essential for us to uphold these rules to identify the most reliable traders and steer clear of individuals engaged in pure speculation.
Our consistency rule applies exclusively to the funded stage and is evaluated during the withdrawal process:
33% consistency rule: A single trade should not account for more than 33% of the requested profit. This precaution aims to prevent traders from going “all in” before news events or engaging in risky behavior, encouraging the application of sound risk management. It also aids in our overall risk management strategy, contributing to a more sustainable long-term risk model.
This rule is also applicable only in the funded stage. We utilize volume bands for risk management and consistency purposes. For instance, if a trader typically uses lot sizes of 0.50 and 1.50 lots on gold throughout the month, assuming a 1-lot average size per trade, a single trade with 10 lots placed just before significant events would be invalidated from the results. This is because it exceeds 200% of the average volume for the period, similar to if it were more than 75% below the average lot size.
Example (values for illustration purposes only):
Average lot size: 1 lots per trade
Upper limit: 2 lots per trade
Lower limit: 0.25 lots per trade
Any trades within this range are deemed acceptable. These rules are crafted to strike a balance, offering a competitive challenge while ensuring the sustainability of the Prop in the market over the long term. In the event of trades falling outside the consistency range, the account remains intact; only those specific trades are removed, and the remaining amount is processed accordingly.
While opinions may vary, some traders find these rules beneficial, stating that they become better traders by adhering to their trading plans rather than succumbing to impulsive decisions.