What is the Consistency Rule?
The Consistency Rule in Leveled Up Traders is designed to ensure you achieve steady and sustainable profits while effectively managing risk. The rule states that the earnings of your best trading day should not exceed 45% of your total profits.
The Consistency Rule applies during all Phases of all Challenge types. It does not apply to live Funded Accounts.
Check out our video below for more info:
Why is the Consistency Rule Important?
Leveled Up Traders' Consistency Rule aids in the cultivation of consistent profits and the avoidance of emotion-driven trading. By ensuring your most profitable day falls below 45% of your overall profits, you can better manage your risk-reward ratio (RRR) and develop a more sustainable trading approach. This rule assists Leveled Up Traders in identifying the top professional traders to fund.
When is the Consistency Rule required and how is it calculated?
The Consistency Rule applies to all Phases of all Funded Account Challenges. Here, you have the chance to demonstrate your ability to manage risk effectively and build consistent success.
The calculation is as follows: Best Day Profit ÷ Overall Profit = Best Day % of Total Profit
Let's illustrate this with a new example:
Imagine a $25,000 account with a Phase 2 profit target of $1,250 (5%). The daily profit should not exceed $562.5, which is 45% of the profit target. Consider this scenario:
You reach your target and make a total profit of $1,250.
You earn $750 profit in a single day.
Your Consistency Score is 60%
Result: You are required to reach a greater profit target until you reduce your consistency score to 45%. Your adjusted profit target will be visible in the dashboard.
The calculation is as follows: Best Day Profit ÷ Required Consistency % = Adjusted Profit Target $750/45 x 100 = $1,666.67
Once you reach a total profit of $1,666.67, you will pass the Challenge as you have demonstrated that you can profit consistently without relying on risky large trades.
To succeed, you should devise a strategy that prevents you from exceeding a $562.5 daily profit.
Here is another example taking into consideration multiple trading days in the challenge:
5 trading days with the following results, day-by-day:
Day 1: +$1,000
Day 2:-$500
Day 3: +$2,000
Day 4: +$750
Day 5: -$250
This results in a total P/L of $3,000. The highest profit day was the day of +$2,000, so we arrive at the following calculation and value:
$2,000 / $3,000 * 100 = ~0.667 * 100 = ~66.67% Highest Profit Day
Please note the following: The system conducts a daily analysis at the close of trading (5 PM EST) by comparing the opening equity against the closing equity to determine the daily profit. This calculation encompasses both realized profits from closed trades and unrealized profits from positions still open. Consequently, for positions held over several days, the system will aggregate the profits across those days.
Example:
If you have a position open for 2 days, with $1,000 profit on Day 1 and $2,000 profit on Day 2, each day would count as $1,000 towards the Consistency Rule calculation.
What is meant by the Recommended Best Day?
Given that your best trading day should remain below 45% of your total profit, we recommend that you set a daily profit target below this threshold. This strategy will help you maintain consistency and lock in daily profits.
Here are examples of recommended best day profits by account size, for Phase 1, Phase 2, and single phase Challenges:
Account Size / Challenge | Phase 1 | Phase 2 | Single Phase |
$5k | Less than $225 | Less than $112 | Less than $315 |
$10k | Less than $450 | Less than $225 | Less than $630 |
$25k | Less than $1,125 | Less than $562 | Less than $1,575 |
$50k | Less than $2,250 | Less than $1,125 | Less than $3,150 |
$100k | Less than $4,500 | Less than $2,250 | Less than $6,300 |
$150k | Less than $6,750 | Less than $3,375 | Less than $9,450 |
$200k | Less than $9,000 | Less than $4,500 | Less than $12,600 |
Note: The goal is to set a daily target that prevents you from exceeding these amounts, ensuring you stay within the 45% rule. If you have any further questions or need assistance setting your target, feel free to reach out!"