[Instant Funding Lite] How does the 20% Consistency Rule work?
The 20% Consistency Rule says that, the trading day with the biggest profit, this profit should not be more than 1/5 of the total profit.
Example to meet the consistency rule:
Day 1: Profit 100. To calculate, based on Day 1, how much total profit I should aim for, to be within the 20% Consistency rule, I can just divide 100/20%. This will give us 500. This is the total profit I should aim to be within the consistency rule and at the same time, the following trading days, should not exceed 100 USD profit per day.
Day 2: Profit 100
Day 3: Profit 100
Day 4: Profit 100
Day 5: Profit 100
Consistency rule is met. I can wait for another 5 days, trade or not trade – up to each client – to meet the minimum requirement for the 10 trading days: Payout is enabled. I can request a payout.
The above scenario showcases the most optimal scenario. It doesn’t have to be 100 USD per day, it can be 10 USD profit on a day, another day 20, another day 80; what matters is the total profit to be 500 and this can be achieved at any point as there is no time limit on this. Only be aware that, if NO trade is placed for 60 calendar days in a row; this is an inactivity breach.
Important: Profit of more than 100 can be done. There is not limit to this. Example:
Day 1: 100 USD
Day 2: 300 USD
Now, Day 2 is the best trading day and the biggest profit achieved is 300. Using the formula: 300/20% = 1500. This will just increase the total profit required, to be within the 20% consistency rule. There is no limit to how much profit can be achieved on a day, only keep in mind the formula and how the total profit will change to meet the consistency rule.
Day 3: 200 UD
Day 4: 250 USD
Day 5: 50 USD
Day 6: 100 USD
Day 7: 300 USD
Day 8: 200 USD > Total of 1500 so far. 20% of 1500 is 300. The day with the best profit is Day 2 with 300. The other days are lower than 300; the Consistency rule is met.
Once 10 days are completed from when the first trade was placed and consistency rule is met, I can proceed with the payout.