Consistency Target Rule
Rule Description
The Consistency Target rule checks the result of the best trading day relative to the current profit
target.
If your best trading day makes up 40% or more of the current profit target, then the current profit
target will be increased so that the best trading day becomes 40% of the new profit target.
What will happen if the values of this rule are exceeded?
Exceeding the Consistency Target value will not result in a rule violation.
If this happens,
a new profit target will be set for the account and the Consistency Target line
will be displayed in yellow in the LMI Trade Report module.
The new profit target value can
easily be calculated using this formula: best trading day result / 0.40 = new profit target.
Initial Rule Values
Initially, the Consistency Target is set at the following values:
|
Account Size |
Profit Target |
Best Day Profit (Consistency Target) |
|
| $10,000 | $700 | Less than $280 | |
| $30,000 | $2,000 | Less than $800 | |
|
$50,000 |
$3,000 |
Less than $1,200 |
|
|
$100,000 |
$6,000 |
Less than $2,400 |
|
|
$150,000 |
$9,000 |
Less than $3,600 |
|
|
$300,000 |
$20,000 |
Less than $8,000 |
|
How are initial values calculated?
You can see how the calculations are made based on the values specified in the table above:For a $10,000 account: $280 / 0.40 = $700
For a $30,000 account: $800 / 0.40 = $2,000
For a $50,000 account: $1,200 / 0.40 = $3,000
For a $100,000 account: $2,400 / 0.40 = $6,000
For a $150,000 account: $3,600 / 0.40 = $9,000
For a $300,000 account: $8,000 / 0.40 = $20,000
Example of calculating a new profit target
If the best trading day's profit becomes more than 40% of the current profit target, then the new profit target will
be calculated as follows:
Example for a $50,000 account:
The initial Consistency Target
value for $50,000 is $1,200 and the profit target is $1,200 / 0.40 =
$3,000.
If the result for the best trading day is $1,400, then the new profit
target will be $1,400 / 0.40 = $3,500.
If in the future, the result for the best trading day
is updated again, for example, the new best trading day is $1,550, then the new profit target will
be $1,550 / 0.40 = $3,875.
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