Payout Profit Distribution Rule – FAQ

What Is the Payout Profit Distribution Rule?

To request a payout, your trading profits must be distributed across multiple trading days.

πŸ‘‰ 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 firm’s point of view, this rule helps to:

  • Prevent one-day lucky wins or high-risk β€œgambling” 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

πŸ‘‰ This means no single trading day may contribute more than $1,000 toward that payout.


Practical Examples


βœ… 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

βœ” Largest day = $1,000 (25%)

βœ” Payout request allowed


❌ Invalid Scenario (Rule Not Met)

Day

Daily Profit

Day 1

$1,800

Day 2

$900

Day 3

$700

Day 4

$600

Total

$4,000

❌ Largest day = $1,800 (45%)

❌ Payout request not allowed yet

πŸ‘‰ You must continue trading and increase profits on other days until the $1,800 day represents 25% or less of the total.


How to β€œFix” 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

πŸ‘‰ 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

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