🏷️#Trading strategy
5 articles
The Consistency Rule Specifically Targets Trend-Following: What 10,000 Runs on a Real EA Showed [Opinion]
We connected a real EA to Fintokei's server and compared over-trading, trend-following, and one-sided betting with risk sized equally. Without a consistency rule, trend-following wins outright (70.4%), but the more profit concentrates in big wins, the harder it gets cut down — the purest trend-following setup dropped to a 0.0% pass rate at a 20% threshold. This gives a structural explanation for the observation that "winners cluster at firms with loose consistency rules."
Does Averaging Down Beat the Consistency Rule? What a Real EA Backtest and a Rulebook Review Actually Show [Opinion]
Averaging down (nanpin/DCA) turned out to be genuinely immune to the consistency rule. But at a 13.2% pass rate, it's useless on its own. Adding a stop-loss raises that to 41.2% while keeping the immunity — but it still falls short of trend-following's 52.9%. Checking the actual rulebooks, what's banned isn't averaging down itself — it's doubling your lot size.
High-variance strategies are the ones suited to prop firms | Why you should deliberately NOT bring a low-variance edge like goto-bi trading [Opinion]
A prop firm's payoff is like a call option: losses are capped at the challenge fee, while the upside is large once funded. That's why a strategy's variance (volatility) becomes an asset. Meanwhile, a low-variance, high-win-rate edge like goto-bi trading doesn't need insurance — you're better off running it with your own capital. This piece works through that structure.
Trading Styles and Setups That Suit Prop Firm Evaluations: Why 'Discipline' Decides the Outcome More Than the Strategy
An analysis, using overseas data, of which trading styles pass prop evaluations more easily. Covers the strengths and weaknesses of trend-following, breakout, range, and mean-reversion strategies, cautions for scalping/swing trading, how to think about win rate × RR, and prohibited strategies. Explains why disciplined, consistent execution of a validated edge matters more than which strategy you pick.
Consistency rule fully explained: how it's calculated, which firms use it, and techniques to avoid tripping it
Explains the prop firm consistency rule from the formula up: the difference between 20%/30%/40% thresholds, which firms use it, and lot-sizing and day-spreading techniques to avoid violating it.