Stocks Consistency Target Rule

Rule Description

The Consistency Target rule in the Stocks Qualifying Session checks the result of the best trading day relative to the current profit target.

If your best trading day makes up 50% or more of the current profit target, then the current profit target will be increased so that the best trading day becomes 50% 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 / 0.50 = new profit target.

Initial Rule Values

Initially, the Consistency Target for stock evaluation accounts is set at the following values:

How are initial values calculated?

You can see how the calculations are made based on the values specified in the table above:

For a $5,000 Mini account: $175 / 0.50 = $350
For a $25,000 account: $875 / 0.50 = $1,750
For a $50,000 account: $1,750 / 0.50 = $3,500
For a $100,000 account: $3,500 / 0.50 = $7,000

Example of calculating a new profit target

If the best trading day's profit becomes more than 50% 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 a $50,000 stock evaluation account is $1,750, and the profit target is $1,750 / 0.50 = $3,500.

If the result for the best trading day is $2,000, then the new profit target will be $2,000 / 0.50 = $4,000.

Example for a $5,000 Mini account:
If the result for the best trading day is $200, then the new profit target will be $200 / 0.50 = $400.