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.

Prop Firm MyFundedFX Reverses Controversial Consistency Rule After Trader Backlash

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.