Formula: Best Day Profit ÷ Overall Profit = Best Day % of Total Profit
Example 1:
If you have a $25,000 account with a Phase 2 profit target of $2,000 (8%), your best trading day should never exceed 45% of your profit target, which would be $900.
Let’s say you make a $1,200 profit in one day:
This would be above 45% of the $2,000 total target, which means your challenge would not pass. This account would have a 60% Consistency score.
In order to pass you would be 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
$1200/45 x 100 = $2666.67
Once you reach a total profit of $2,666.67, you will pass the Challenge as you have demonstrated that you can profit consistently without relying on risky large trades.
Example 2:
Let’s look at a multi-day scenario:
Over 5 trading days, you have the following results:
Day 5: -$250
This gives a total profit of $3,000. The highest profit day was $2,000.
Now, let’s calculate:
$2,000 / $3,000 = 66.67%
In this case, your highest profit day is 66.67% of your total profit, which exceeds the 45% rule, meaning this challenge would not pass until you reached the Adjusted Profit Target of $4,444.45.
$2000/45 x 100 = $4,444.45
Key Points:
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 $1,000 towards the Consistency Rule calculation.
Non-Failure Consequence: Exceeding the consistency threshold does not result in a failed challenge but the trader is required to continue trading and generating profits until their most profitable day ($) does not exceed the set consistency percentage of the total profits in the trader’s account.