Skip to content

Toxic Traders Are Ruining the Prop Firm Industry

Table of Contents

Why we’re introducing the Consistency Rule — and how legit traders benefit

The prop trading industry has grown rapidly in recent years, but with that growth has come a darker

reality: a wave of traders who specialize in gaming prop firm models, not in trading the markets sustainably.

These aren’t traders looking to build long-term skills or careers. They’re opportunists exploiting loopholes, pushing aggressive, high-risk trades, and hitting targets off a few oversized trades — then disappearing.

And here’s the truth most don’t say out loud:

This behavior is one of the biggest reasons prop firms collapse.

 

How Toxic Traders Hurt Everyone

You might think, “Let them game the system — it doesn’t affect me.”

But it does. And here’s how:

  • Operational Strain: Alongside trader data and other information, prop firms also operate on a balance of payouts vs overall revenue. Unsustainable behavior from toxic traders drains liquidity and forces firms to tighten rules — or shut down.
  • Reduced trust: It creates a negative perception of all traders, even those who are legitimate, making it harder to offer trust-based models.
  • Tougher conditions: Legit traders end up facing stricter rules, longer payout cycles, or worse — a vanished firm.

If you’re a real trader — you’re being impacted.

If you’ve ever wondered why a good firm disappears, this is often the reason.

The Need for Change

At Tradexprop, we’ve made a choice:

We’re not playing that game anymore.

We’re here to back real traders — not gamblers who’d never grow their own retail account using the same strategy

So starting April 16, 2025 (EST), we’re introducing two key updates for all new forex evaluation plans:

  • A 45% Consistency Requirement
  • Bi-weekly payouts

 

What the Consistency Rule Really Means

The Consistency Requirement isn’t about punishing strong performance or “lucky” days — every trader has them.

It’s about preventing an unhealthy reliance on outsized, concentrated trades — whether driven by high risk gambling or intentional system exploitation. While these tactics may achieve short-term results, they undermine the sustainability of the prop firm model and go against our core vision of supporting real, long-term traders.

By enforcing consistency, we protect the integrity of our ecosystem and ensure that funding is directed toward disciplined traders with repeatable, market-driven strategies.

 

A Stable Business Helps Us Give Back More

The direct impact of having a stable, sustainable, and growing business model is our ability to create true value for our community of legit traders.

When we preserve integrity on the trading side, we gain flexibility on the reward side and that’s exactly what led us to the next update.

 

Bi-Weekly Payouts (For New Forex Evaluation Plans)

Beginning April 16, 2025 (EST), all new funded accounts will follow a bi-weekly payout cycle — giving traders more frequent access to their profits.

This is more than just convenience — it’s recognition.

We’re rewarding consistency, discipline, and professionalism with faster withdrawals.

A more sustainable system = more value for real traders.

Who Do These Changes Affect?

These updates apply only to new Forex evaluation and funded accounts created after April 16, 2025 (EST).

Current accounts will continue under existing rules unless otherwise required for risk management reasons.

Quick Summary of Changes (Effective April 16, 2025)

Account Type Rule Update
1-Step Forex Only (static max DD; no lock on payout) 45% consistency rule applies to both the Evaluation and Funded phases. Payouts updated to bi-weekly
2-Step Forex Only (static max DD; no lock on payout) 45% consistency rule applies to both the Evaluation and Funded phases. Payouts updated to bi-weekly.
Instant Funding (trailing max DD; lock on payout) No changes.
1-Step Crypto Only (static max DD; no lock on payout, with daily caps) No changes.
2-Step Crypto Only (static max DD; no lock on payout, with daily caps) No changes

Note: These changes apply only to new forex evaluation plans purchased after April 16, 2025 (EST).

Appendix: How the Consistency Rule Is Calculated

The Consistency Requirement is designed to ensure traders demonstrate stable, repeatable performance — not just rely on a single high-risk or oversized trade. It applies differently depending on whether you’re in the Evaluation Phase or the Funded Phase.

 

Evaluation Phase

Applying the Consistency Rule

To pass the evaluation, your best trading day must not exceed 45% of your total profit target.

  • Formula for Consistency Score = (Best Trading Day ÷ Total Profit Target) x 100

Threshold: Must be ≤ 45% to pass the evaluation

  • Formula for Profit Target Readjustment (if threshold is breached) = (Best Trading Day ÷ 45) x 100

Example:

Suppose your evaluation profit target is $8,000, and your best trading day shows a profit of $4,000.

Consistency Score Calculation:

($4,000 ÷ $8,000) x 100 = 50%

That means your best day accounts for 50% of your total profits — which exceeds the 45% threshold.

Since we don’t allow this threshold to be breached, the system will adjust your profit target  upward to bring your Consistency Score back to exactly 45%.

 

Adjusted Profit Target Calculation:

($4,000 ÷ 45) x 100 = $8,888.89

You will need to continue trading until you reach the new adjusted target.

This ensures the account is not passed based on a single outsized day.

 

Funded Phase

Applying the Consistency Rule

To qualify for a payout, your best trading day must not exceed 45% of your total profits.

Once a payout is successfully processed, your best trading day and cumulative total profit will reset.

  • Formula for Consistency Score = (Best Trading Day ÷ Total Profits) x 100

Threshold: Must be ≤ 45% to be payout eligible.

Day-by-Day Example (Funded Phase – Consistency Rule at 45%)

Day Profit for the Day Cumulative Total Profit Consistency Score Payout Eligibility
1 $500 $500 100% No
2 $500 $1,000 50% No
3 $500 $1,500 33.33% Yes
4 $2,000 $3,500 57.14% No
5 $1,000 $4,500 44.44% Yes

Interpreting the Example:

This example illustrates a trader who becomes eligible for a payout on Day 3 after maintaining a Consistency Score of 33.33%. However, the trader chooses to continue trading and earns a large $2,000

profit on Day 4, pushing the Consistency Score to 57.14% — making them ineligible for payout at that point.

By Day 5, with another $1,000 added in profit, the trader brings their Consistency Score back within the 45% threshold (now 44.44%), becoming eligible for payout once again.

Pro Tip: Managing your Consistency

Plan Your Trades

Take time to structure your trades with realistic profit targets that stay within the 45% consistency

threshold. Avoid impulsive decisions — consistency is more important than speed.

And remember: with Tradexprop, you have unlimited time to complete your evaluation. There’s no need

to rush. Focus on sustainable growth, not short-term spikes.

Disclaimer

The information presented on this website is for general informational purposes only and should not be considered investment advice. Before making any financial decisions, always perform your own research and consult a qualified financial advisor. We do not endorse or promote any specific investment products or strategies, and any action you take based on the content of this website is solely at your own risk. This website and its content are not responsible for any financial gains or losses you may encounter.

Please note: You should seek professional legal counsel to confirm that this disclaimer meets all applicable regulations within your jurisdiction.

Table of Contents

Categories:

Suggested Blogs: