To explain the consistency rule more effectively, I think a practical example will be more helpful than a bunch of stacked-up theories.
But to put it simply, your best trading day's profit must be less than 50% of your total profit.
Let's say I bought a $10k 1-Phase account.
The profit target is 8%, so I have to make $800 profit to get funded.
Let's say I traded across 7 trading days and hit the target. Here are the hypothetical profits across the 7 days in the image attached.
From the image, my best trading day was Day 4 with a $500 profit.
The other 6 days added up to $300, bringing my total profit to $800.
So technically, I hit the 8% profit target and should've passed the evaluation.
But that's not the case.
My best trading day made up 62.5% of my total profit, which exceeds the 50% Best Day Rule.
So what can I do?
Keep trading until my best day is less than 50% of my total profit.
In this example, my best day is $500, so I need my total profit to be more than $1,000 to satisfy the rule.
If I make exactly $1,000, the $500 best day would still be 50%, so I'd need to make a little more than that... Say, $1010 Will do because that brings th consistency to 49.5%.
The same rule applies to the funded stage.
Before requesting a withdrawal, you need to have at least $100 in profit.
And for 1-Phase accounts, your best trading day's profit must be less than 50% of the total profit you're trying to withdraw.
Otherwise, you have to keep trading until you meet the rule before requesting your withdrawal.
I never intended for this to be this long, but oh well... It is what it is 🥲
For the other four of the account details on
@carrotfunding;
Max Daily Loss/Daily Drawdown, Max Loss/Overall Drawdown, Profit Target, Leverage, Profit Split, Best Day Rule/Consistency Rule.
I've talked about the first 2... Now let's go over the others.
✅ Profit Target is the profit you're required to make before you pass an account's evaluation.
For 2-Phase accounts, the targets are 8% for Phase 1, and 5% for Phase 2.
For 1-Phase accounts, it's 8%.
This is only applicable to the evaluation phase. There's no profit target for the funded stage.
What is applicable on the funded stage though is a minimum withdrawal amount.
You need to make at least 100 USDC in profit to be eligible to request a withdrawal.
✅ Leverage is basically how much larger a position you can control compared to the amount of capital in the account.
CarrotFunding offers up to 5× leverage per position, although the maximum can vary depending on the market.
So a $10k account could have up to $50k in position exposure at 5× leverage.
It's important to note that leverage doesn't mean you own or receive that extra capital, and it doesn't make the trade less risky.
In fact, if anything, I'd say it increases the risk.
✅ Profit Split is self-explanatory already 👀
It's the share of profit you get to keep from the profits you make in your funded account.
80% to you, and 20% to CarrotFunding.
This is applicable to both 1 & 2-Phase accounts.
✅ Best Day Rule/Consistency Rule is where things get interesting.
I think it deserves a post of its own...
But briefly, this means your profits have to be spread across trading days to be eligible for withdrawal.
The number written for the rule is the maximum percentage of your total profit that can come from a single trading day for withdrawal eligibility.
50% for Carrotfunding.
The good news?
This is only applicable to 1-Phase accounts.
I'll quote this post later with more details about this rule.
Side note: This rule is one I dislike from the bottom of my heart because it has traumatized me back in my Forex days 🥲