Prop Firm MyFundedFX Reverses “Consistency Rule” Just Two Weeks after Implementation

MyFundedFX,
a US-based proprietary trading firm, has abruptly canceled its recently
implemented consistency rule following widespread opposition from its client
base. The rule, which had been in effect for just two weeks, was designed to
discourage high-risk trading strategies but faced significant criticism from
traders.

On July 3,
2024, Matthew Leech, CEO of MyFundedFX, announced the introduction of a 50%
consistency guideline for funded accounts. This rule stipulated that no more
than 50% of a trader’s profits could be generated from a single trading day in
the funded stage. While not a breachable offense, it required traders to
continue trading until meeting the 50% threshold before withdrawing profits.

“The final
change for the future is here.As of this moment on all funded
accounts, we are implementing a 50% consistency guideline,” Leech commented two
weeks ago. “This is solely designed to prohibit and discourage individuals from
max leveraging a single trade and encouraging multi day consistency towards
payout.”

However,
the trading community’s response was overwhelmingly negative. Traders argued
that the rule unfairly limited certain trading styles and strategies,
potentially hindering their ability to capitalize on market opportunities.

In response
to this backlash, Leech issued a statement yesterday (Saturday) reversing the
decision.

“Over
the last few weeks, I have seen the feedback regarding the consistency rule and
understand your frustrations as it limits specific trading styles from
succeeding vs others,” Leech acknowledged. “After re-evaluating the
changes, we have decided to adjust our approach with the following actions
being taken today by close of business.”

The CEO
announced three key changes:

• The
  consistency rule has been removed for all accounts, both new and existing.
• Funded
  account payout frequencies are returning to their previous schedules.
• Leverage
  ratios are being adjusted across all platforms and phases to align with
  regulated CFD leverage requirements.

Leech
explained that these changes aim to reduce all-or-nothing trading behavior in
funded accounts, comply with recently acquired licensing requirements, and
deter malicious trading practices. He also noted that the reduced leverage is
expected to increase pass rates on challenge phases while promoting more
consistent trading in funded accounts.

Traders
with open positions were instructed to flatten all positions by 3:00 PM CST on
the day of the announcement to facilitate the implementation of these changes.
Trading is set to resume as normal from the market open on Sunday evening.

This rapid
reversal highlights the delicate balance proprietary trading firms must
maintain between risk management and trader satisfaction. It also underscores
the power of collective trader feedback in shaping industry policies.

If you’d like to get a detailed understanding of MyFundedFX’s offerings, you can check out Finance
Magnates’ review of four prop firms based in the United States. Together with
Leech’s company, we also compared E8 Markets, Earn2Trade, and Smart Prop Trader.

MyFundedFX
was one of the first firms to suspend the acceptance of new clients from the
United States in February 2024 due to the regulatory crisis involving MetaQuotes licenses for
the popular MetaTrader platforms. However, just two weeks later, thanks to a collaboration with Blueberry Markets, MT platforms returned to the offerings of the popular prop firm.

MyFundedFX,
a US-based proprietary trading firm, has abruptly canceled its recently
implemented consistency rule following widespread opposition from its client
base. The rule, which had been in effect for just two weeks, was designed to
discourage high-risk trading strategies but faced significant criticism from
traders.

On July 3,
2024, Matthew Leech, CEO of MyFundedFX, announced the introduction of a 50%
consistency guideline for funded accounts. This rule stipulated that no more
than 50% of a trader’s profits could be generated from a single trading day in
the funded stage. While not a breachable offense, it required traders to
continue trading until meeting the 50% threshold before withdrawing profits.

“The final
change for the future is here.As of this moment on all funded
accounts, we are implementing a 50% consistency guideline,” Leech commented two
weeks ago. “This is solely designed to prohibit and discourage individuals from
max leveraging a single trade and encouraging multi day consistency towards
payout.”

However,
the trading community’s response was overwhelmingly negative. Traders argued
that the rule unfairly limited certain trading styles and strategies,
potentially hindering their ability to capitalize on market opportunities.

In response
to this backlash, Leech issued a statement yesterday (Saturday) reversing the
decision.

“Over
the last few weeks, I have seen the feedback regarding the consistency rule and
understand your frustrations as it limits specific trading styles from
succeeding vs others,” Leech acknowledged. “After re-evaluating the
changes, we have decided to adjust our approach with the following actions
being taken today by close of business.”

The CEO
announced three key changes:

• The
  consistency rule has been removed for all accounts, both new and existing.
• Funded
  account payout frequencies are returning to their previous schedules.
• Leverage
  ratios are being adjusted across all platforms and phases to align with
  regulated CFD leverage requirements.

Leech
explained that these changes aim to reduce all-or-nothing trading behavior in
funded accounts, comply with recently acquired licensing requirements, and
deter malicious trading practices. He also noted that the reduced leverage is
expected to increase pass rates on challenge phases while promoting more
consistent trading in funded accounts.

Traders
with open positions were instructed to flatten all positions by 3:00 PM CST on
the day of the announcement to facilitate the implementation of these changes.
Trading is set to resume as normal from the market open on Sunday evening.

This rapid
reversal highlights the delicate balance proprietary trading firms must
maintain between risk management and trader satisfaction. It also underscores
the power of collective trader feedback in shaping industry policies.

If you’d like to get a detailed understanding of MyFundedFX’s offerings, you can check out Finance
Magnates’ review of four prop firms based in the United States. Together with
Leech’s company, we also compared E8 Markets, Earn2Trade, and Smart Prop Trader.

MyFundedFX
was one of the first firms to suspend the acceptance of new clients from the
United States in February 2024 due to the regulatory crisis involving MetaQuotes licenses for
the popular MetaTrader platforms. However, just two weeks later, thanks to a collaboration with Blueberry Markets, MT platforms returned to the offerings of the popular prop firm.