[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.
[Instant Funding Lite] How does the MAX trailing drawdown work? How does the payout affect it?
The MAX trailing drawdown percentage for the Instant Funding Lite is 4%
It is calculated by taking the high water mark ( highest balance the account had been) and then deduct 4% of the initial balance to find the new MAX Trailing drawdown level.
Example: On a 1000 USD initial balance, 4% will be 40 USD. MAX trailing drawdown level starts at 960.
Profit of 20 USD is made. Balance: 1020. MAX trailing drawdown will also trail, will move up, by same amount. New MAX trailing drawdown will be 980. ( 1020 - 40). The equity must not go below 980 or else the account breaches due to MAX drawdown getting breached.
The MAX trailing drawdown will trail up, until 4% profit is made ( 40 USD) and then it will be LOCKED at the initial balance: MAX drawdown level will be 1000 ( the initial balance).
If 40 USD profit is made, balance is 1040, minus 4% of 1000 ( 40) = 1000 as MAX drawdown which is now LOCKED at this level - stops trailing.
MAX drawdown will also Lock at the initial balance if a payout gets processed.
If either 4% profit is reached or payout gets processed - whichever happens first: the MAX drawdown will be locked at the initial balance.
Withdrawing all profit, puts the account at risk for getting breached. As per above example: On 1000 balance, if profit made is 100 and the full profit is withdrawn, then the balance after payout will be 1000. Since the profit made is more than 40 USD ( more than 4% and also a payout got processed), the MAX drawdown is also 1000. As soon as a trade gets placed, due to the spread, the equity will go below the MAX drawdown level, thus, breaching the account. It is always best to leave a buffer if you intend to keep on using the same account; the amount to be left is up to each trader to decide as it depends on the trading style, strategy etc.
[Instant Funding Lite] What is Instant Funding Lite?
Instant Funding Lite is an entry-level instant funding program that provides a funded account from day one with no evaluation phase and no profit targets. Traders operate under predefined drawdown limits and trading rules focused on risk control and consistency.
[Instant Funding Lite] What’s the max drawdown limit?
The maximum trailing drawdown is 4% across all Instant Funding Lite account sizes.
[Instant Funding Lite] What’s the daily drawdown?
The daily drawdown limit is 3%, which is the maximum loss allowed within a single trading day.
