Payout Profit Distribution Rule β FAQ
What Is the Payout Profit Distribution Rule?
To request a payout, your trading profits must be distributed across multiple trading days.
π No single trading day may contribute more than 25% of the total profit you are requesting to withdraw.
If one day exceeds this limit, the payout request will be processed until this rule is satisfied.
When Does This Rule Apply?
This rule may be applied in cases where profit distribution is concentrated on one or very few trading days, especially when:
- A single day generates a disproportionately high profit
- Trading behavior appears inconsistent or unusually aggressive
- Profits rely heavily on short-term spikes or oversized positions
Why This Rule Exists (Firm Perspective)
From the prop firmβs point of view, this rule helps to:
- Prevent one-day lucky wins or high-risk βgamblingβ behavior
- Encourage consistent, repeatable trading performance
- Reduce exposure to strategies relying on news spikes or oversized trades
In short:
The goal is stable performance, not one exceptional trading day.
How the 25% Rule Is Calculated
Step 1: Define Your Payout Amount
This is the total profit you want to withdraw.
Example:
Requested payout: $4,000
Step 2: Calculate 25% of That Amount
25% of $4,000 = $1,000
π This means no single trading day may contribute more than $1,000 toward that payout.
Practical Examples
β Valid Scenario (Rule Met)
Day | Daily Profit |
|---|---|
Day 1 | $800 |
Day 2 | $900 |
Day 3 | $1,000 |
Day 4 | $700 |
Day 5 | $600 |
Total | $4,000 |
β Largest day = $1,000 (25%)
β Payout request allowed
β Invalid Scenario (Rule Not Met)
Day | Daily Profit |
|---|---|
Day 1 | $1,800 |
Day 2 | $900 |
Day 3 | $700 |
Day 4 | $600 |
Total | $4,000 |
β Largest day = $1,800 (45%)
β Payout request not allowed yet
π You must continue trading and increase profits on other days until the $1,800 day represents 25% or less of the total.
How to βFixβ an Invalid Payout
If you already had one large trading day, you can still qualify by increasing your total profit.
Example:
- Biggest day: $1,800
To make $1,800 equal 25%, total profit must be:
$1,800 Γ· 0.25 = $7,200
π Once your total profit reaches $7,200 (without violating other rules), the payout becomes valid.
Key Strategy Tips for Traders
1. Avoid Oversizing Early
Large early wins can delay payouts, even if they are profitable.
2. Think in Daily Profit Caps
If your payout target is:
- $2,000 β max ~$500 per day
- $5,000 β max ~$1,250 per day
3. Scale Gradually
Build several green days first, then increase size slowly.
4. Consistency Beats Speed
Fast profits can actually slow down payouts if distribution rules are broken.
Updated on: 15/12/2025
Thank you!
