Consistency Rule
Designed to filter gamblers, or grind you down?
What it is
A consistency rule limits how much of your total profit can come from a single trade or a single day. Typical implementations: no single day can account for more than 30-40% of your total profit, or your best day can't exceed X% of your account.
Why it exists
Firms want to fund traders with repeatable edge, not gamblers who got lucky once. A trader who makes their entire 8% target in one massive trade is statistically more likely to blow up eventually than one who averages 0.5% per day consistently.
The two sides
The firm's argument
It filters for real skill vs. luck. Consistent traders are more likely to stay profitable long-term, which is better for both the firm and the trader.
The trader's reality
Many legitimate strategies are inherently inconsistent. Trend followers have many small losses and occasional large wins. A consistency rule forces traders to either change their strategy or artificially close winning trades early to stay within limits. Both are bad for performance.