What is a consistency rule and when does it apply?

The Consistency Rule is a vital guideline in trading that ensures you focus on steady, sustainable profits rather than relying on isolated successful trades. This rule is designed to assess how well you can generate profits over time while maintaining a disciplined and balanced approach to risk.

In the Pivex Funded stage (Funded Trader stage), the Consistency Rule is actively monitored to ensure that traders maintain a methodical, responsible trading strategy. Deviations from consistent trading behavior—such as placing occasional large trades or making drastic fluctuations in profit and loss may raise concerns and could be subject to review.

The 50% Consistency Rule

The most important part of the overall Consistency Rule is the 50% Consistency Rule. This ensures that your performance is stable and not dependent on one lucky trade. This applies across both the Trading Challenge and the Pivex Funded Stage (Funded Trader Stage) and is checked when reviewing accounts for upgrades or payouts.

How is it calculated?

To pass this rule, no single trade should make up more than 50% of your total realized profit. We calculate this by comparing the profit from your single largest winning trade to your total overall profit.

• Formula: (Profit from Largest Single Trade / Total Realized Profit) * 100%

Example: 

If your total realized profit is $10,000 and one trade contributed $7,000, that single trade makes up 70% of your total profit. This would be a breach of the 50% Consistency Rule.

What Happens If You Breach the 50% Rule?

If you breach the rule, you will not be disqualified. However, you will need to continue trading to make your performance more balanced. You must generate more profits from other trades to dilute the weight of your largest trade until it makes up 50% or less of your total profit. Until this condition is met, you will not be eligible to move to the next stage or request a payout.

Why is the Consistency Rule Important?

The Consistency Rule ensures that traders are focused on developing sustainable strategies rather than chasing short-term gains. This helps to prevent excessive risk-taking and aligns your trading approach with long-term profitability. It’s essential in both the Trading Challenge and Pivex Funded Trader's Stage, as it ensures traders can handle real capital responsibly and are not relying on sporadic wins or high-risk trades to succeed.

Example: Consistent vs. Inconsistent Traders

Here’s an example comparing three traders’ approaches over 10 days:

• Trader A (Consistent): Trader A maintains consistent profits each day, with small, steady gains over time. This consistent approach is key to success in the Pivex Funded stage (Funded Trader stage).
• Trader B (High-Risk): Trader B shows high profits on some days but also faces large losses on others, which is characteristic of high-risk behavior. This inconsistency makes it difficult to predict long-term performance and would likely violate the Consistency Rule.
• Trader C (Inconsistent): Trader C experiences frequent fluctuations in profit and loss, making their performance hard to rely on. This inconsistency can hinder progress and is not aligned with the Consistency Rule.

In the Pivex Funded Trader's Stage, your ability to earn real payouts is directly tied to consistent performance. Trader A exemplifies how steady, incremental profits lead to sustained payouts. On the other hand, Trader B and Trader C demonstrate how large swings in performance and relying on single large trades could jeopardize long-term success.

The Key Takeaway:

To qualify for consistent payouts and maintain your Pivex Funded stage (Funded Trader stage) account, focus on consistency. Plan your trades, follow your strategy, and avoid making risky, one-off trades. Ensure that no single trade accounts for more than 50% of your total profits. Remember, long-term profitability is the goal, and Pivex Funded is here to support you in achieving that!

If you need further guidance or feedback on your strategy, don’t hesitate to reach out to our support team for advice.