2 Phase Static account – 25% Consistency Rule
The consistency rule applies to the Live, Funded stage of the 2 Phase static. It does not apply for the evaluation phases.
How does it work?
The profit achieved in a day must not exceed 25% of the total profit made. If $50 profit is made in a day, then to meet the consistency rule, the target total profit should be $200 (25% of $200 = $50). Considering that each day the profit is $50 (no more than $50), by the end of Day 4, a profit of $200 is achieved, with $50 profit per day meeting the consistency rule.
If the profit on any day exceeds $50 (in the above example), the new target profit will be calculated using the following formula:
Highest Daily Profit (HDP) ÷ 25% = Total Profit Required
The profit per day should not exceed the highest profit achieved on any of the days.
Example:
- Day 2: $60 profit
- Day 3: $70 profit
- Day 4: $100 profit
*The highest profit is $100.
$100 ÷ 25% = $400
$400 is the total profit required to meet the consistency rule (25% of $400 = $100).
The balance you should aim for is the starting balance plus the profit made.
Example with Consistent Daily Profit:
- Starting Balance: $1,000
- Daily Profit: $50
- Day 1: $1,050
- Day 2: $1,100
- Day 3: $1,150
- Day 4: $1,200
Initial balance: $1,000 Profit: $200 ($50 profit per day) Total balance: $1,200 — Consistency rule achieved
Example with Varying Daily Profit:
It is possible for the accumulated profit to be achieved over more days.
- Day 1: $1,050 ($50 Profit)
- Day 2: $1,080 ($30 Profit)
- Day 3: $1,100 ($20 Profit)
- Day 4: $1,125 ($25 Profit)
- Day 5: $1,160 ($35 Profit)
- Day 6: $1,200 ($40 Profit)
Notice that in the above example, the biggest profit on any of the days was $50. Thus, the consistency rule is achieved.
Like our previous example marked with *: If on any of the days the profit exceeds $50, then the consistency rule will be recalculated using the highest profit from any of the days. This will result in an increased total profit requirement, so that 25% of the total profit equals (or is less than) the biggest profit achieved on one of the days.
Important: Highest Daily Profit (HDP) After Withdrawal
The Highest Daily Profit (HDP) remains in the account after a withdrawal and continues to be used as the calculation parameter for the consistency rule unless you achieve a higher profit on another day.
Example with $1,000 HDP:
- Highest Daily Profit (HDP): $1,000 (achieved on any trading day)
- Current Total Profit: $2,500
Calculation: $1,000 (HDP) ÷ $2,500 (Total Profit) = 40%
Since 40% exceeds the 25% limit, the consistency rule is not met.
To meet the consistency rule: $1,000 (HDP) ÷ 0.25 = $4,000 (Required Total Profit)
You must achieve a total profit of $4,000 before you can request a new withdrawal, ensuring your HDP of $1,000 represents 25% or less of your total profit.
Key Point: The HDP does not reset after a withdrawal. It remains as your benchmark unless you achieve a higher daily profit in future trading.