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FAQ Futures Challenges What is Futures Prime Consistency Rule?

What is Futures Prime Consistency Rule?

The Consistency Rule in Futures Prime ensures that traders demonstrate stable and reliable trading habits by limiting the maximum profit that can be made in a single day. This rule encourages traders to adopt consistent, low-risk strategies rather than relying on high-risk, high-reward trades.

Example of Consistency Rule

Scenario:

  • Trader: Alice

  • Account: Prime 100K Futures Challenge

  • Profit Target: $1000

  • Consistency Rule: Alice can only make up to $400 in profit on any given day (40% of the $1000 profit target).

Day-by-Day Breakdown:

  • Day 1: Alice makes $450. This exceeds the 40% consistency rule by $50. The $50 excess is added to her profit target, now making it $1050. Alice’s effective profit for Day 1 is still $450.

  • Day 2: Alice makes $300. She remains within the consistency rule. Her cumulative profit is now $750 ($450 from Day 1 and $300 from Day 2).

  • Day 3: Alice makes $350. This does not exceed the adjusted daily limit of $420 (40% of $1050). Her cumulative profit is now $1100, meeting her target.

Outcome:

  • Alice’s adjusted profit target after Day 1 is $1050, ensuring she cannot achieve the profit target through one or two large trades. This method encourages a consistent trading approach, aligning with the rules of Futures Prime.

By applying the consistency rule, Alice demonstrates stable and reliable trading habits, ensuring she does not rely on high-risk, high-reward strategies that might not be sustainable long-term.