The consistency rule is designed to ensure that your profits are made steadily over time, rather than from just one or two oversized trading days. It promotes disciplined, repeatable trading behaviour.

In this case, the rule states that no single trading day can account for more than 55% of your total profit throughout trading your funded account.
This also applies to lot sizes, using consistent lot sizes and avoiding rapid shifts in positing sizing as by doing so demonstrates a lack of a stable and repeatable trading strategy.

Example:
Let's say you end the challenge with a total profit of $10,000.
- 55% of $10,000 is $5,500.
- This means that no single day’s profit can exceed $5,500.
- If one of your trading days had a profit of $6,000, you would violate the consistency rule - even if all other challenge rules were met

The Trader must ensure that the total margin used across all open positions remains within 10% of the Account’s available margin at all times. Margin utilization is monitored in real time and accounts for every open position, regardless of whether they are directional, hedged, partially hedged, or offsetting.

Exceeding this threshold at any point will be considered a violation of Kudo Funded’s risk management policies, regardless of factors such as trade duration, execution speed, market conditions, perceived risk, or the eventual trade outcome.

Kudo Funded retains the absolute right, at its discretion and without prior notice, to take corrective actions in such cases. These actions may include reducing, closing, voiding, or modifying any positions, revoking associated profits, imposing restrictions on trading activity, or terminating the Account.

The Trader remains obligated to comply with this rule under all circumstances, including temporary spikes in margin usage, rapid scaling of positions, high-frequency execution strategies, or simultaneous order submissions.

1-Step challenge - Reach 10% profit target without violating any rules or guidelines
2-Step challenge - Reach 8% profit target during phase 1 and 5% during phase 2 without violating any rules or guidelines

Daily drawdown - 5%
Maximum drawdown - 10%

There are no limits on holding trades overnight, however to hold trades over the weekend the add-on for ‘weekend holding’ must be purchased in order to hold trades over the weekend.

This policy defines High-Risk Instruments as including, but not limited to, precious metals (such as XAUUSD), cryptocurrencies, equity indices, energy products, and any instrument identified by Kudo Funded as subject to high volatility or reduced liquidity.
Traders are required to ensure exposure to High-Risk Instruments adheres to the following limits:

1. Margin Utilisation Alignment

Following Kudo Funded’s margin usage guidelines, the margin allocated to any single High-Risk Instrument must not exceed 10% of the Account’s available margin at any given time.

Key Clarifications:
- These limits apply to each individual instrument.
- The combined margin utilization across all positions must remain below 10%.
- Violating either limit constitutes a breach of the rule.

2. Asset-Class Concentration

The overall exposure across all High-Risk Instruments must not surpass:
- 40% of total notional exposure, and
- 60% of total margin utilization for the Account at the relevant time.

3. Directional Concentration

Exposure in a single market direction, whether long or short, across all High-Risk Instruments must not exceed 50% of the Account’s overall notional exposure, regardless of:
- Number of positions,
- Hedging strategies employed,
- Placement of stop-loss orders.

4. Position Accumulation and Scaling

Opening multiple positions in the same High-Risk Instrument - in any manner that results in exceeding thresholds outlined above - will be classified as excessive exposure concentration. This applies regardless of:
- Trade size,
- Execution speed,
- Holding duration,
- Profitability of trades.

Exposure and margin utilization are monitored collectively and continuously across all active positions, pending orders, and partially hedged or offsetting trades.

Any violation of these limits will be considered a breach of Kudo Funded’s risk management regulations, irrespective of:
- Usage of stop-loss mechanisms,
- Trader’s intent or expertise level,
- Market fluctuations,
- Position profitability or losses.

Kudo Funded retains the absolute right to take any corrective action deemed necessary, including but not limited to adjusting or liquidating positions, voiding trades, revoking profits from affected positions, restricting trading activity, or terminating the Account without prior notice.

Traders are strictly prohibited from engaging in abrupt, excessive, or disproportionate scaling of lot sizes that significantly elevate the risk profile of their Account. Excessive scaling refers to instances where the lot size of a position in the same or a correlated instrument is increased rapidly compared to the most recently executed position within a 24-hour rolling period - unless such scaling results in either reduced or unchanged aggregate exposure and margin utilization.

To maintain controlled risk exposure, the following guidelines are enforced:

1. Intra-Day Scaling Restriction

During a single trading session, increases in lot size excessively for the same or correlated instruments are not allowed.

2. Time-Based Scaling Restriction

Any lot size increase which is rapidly increased requires a minimum of 24 hours between the closure of the prior position and the initiation of the larger position.

3. Margin Constraints

Scaling activity must not result in:
- Total margin utilization surpassing 10% of the available margin; or
- Margin utilization exceeding 5% for any single High-Risk Instrument.

4. Exposure Concentration Safeguards

Scaling actions leading to:
- Notional exposure to a single High-Risk Instrument that exceeds 25% of the Account's balance or equity; or
- Directional exposure surpassing predefined concentration limits, will be categorized as excessive regardless of adherence to lot-size ratios.

Scaling practices are evaluated holistically and in real time, factoring in open positions, pending orders, partially hedged trades, and offsetting positions. This assessment is independent of considerations such as stop-loss usage, trade duration, execution speed, profitability, or intent.

Violations of this policy represent a breach of Kudo Funded’s risk management standards. Kudo Funded reserves absolute discretion to take action without prior notice, including reducing or closing positions, voiding trades, removing profits derived from violations, restricting trading activity, or terminating the Account. Decisions will be determined using Kudo Funded’s internal risk assessment systems and are final and binding in all instances.

Expert Advisors (EAs) are not permitted, since the purpose of our funded accounts is to evaluate the trader’s ability to manage and operate a trading account effectively.

Engaging in copy trading is prohibited, each trader must operate independently without the use of a copy trading platform. Also, following TER trades is prohibited and will constitute as a breach.

At any given time, the total combined risk across all open positions must not exceed 1% of the account balance or equity, whichever is lower.

Risk is calculated based on the potential loss between the trade entry price and the Stop Loss. All open positions are assessed together when calculating the total account risk.

Example:
On a $100,000 account, the maximum permitted open risk is $1,000.
A trader may:
- Open one trade risking $1,000, or
- Open two trades risking $500 each, or
- Open five trades risking $200 each.

However, the combined potential loss across all open trades must never exceed $1,000.

Opening additional positions that cause the combined open risk to exceed 1% will constitute a breach of this rule.

Stop Loss Requirement:
All positions must have a valid Stop Loss in place so that the maximum potential loss can be calculated. Removing or modifying a Stop Loss in a way that causes total open risk to exceed 1% will also constitute a breach.

Important: Profits on open positions do not increase the permitted risk limit. The 1% limit is always calculated using the lower of the account balance or current equity.

General Guidelines
- All trading activity must reflect a sound and responsible approach to risk management.
- Gambling-style behavior (excessively high-risk trading without a consistent strategy or rationale) is strictly prohibited.

Examples include:
- Placing oversized trades relative to account size
- Risking the majority of the account balance on a single position
- Trading without stop-losses as a means of “all or nothing” speculation
- Random or impulsive trades not based on a repeatable strategy

Specific Prohibited Strategies

Martingale Strategy
Opening multiple positions on the same instrument and in the same direction during a drawdown is strictly forbidden.
- This carries excessive risk and goes against our principles of responsible risk management.
- Engaging in martingale tactics will result in immediate account breach and challenge failure.

All-in-One Trading
Reaching the profit target through a single trade contradicts our requirement for consistent and disciplined trading.
- Any trade where the profit equals or exceeds the entire account profit target in one position will be flagged and considered a violation.

Tick Scalping / High-Frequency Trading (HFT)
Strategies that execute large numbers of trades in milliseconds to exploit minor price movements are not allowed.
- These can distort market activity, create unnecessary volatility, and are deemed manipulative.
- Our evaluation is designed to assess genuine trading skill and strategy, not automated exploits.

Arbitrage Trading
Arbitrage exploits price discrepancies between brokers, platforms, or markets.
- While legal in open markets, this undermines our evaluation process.
- It reflects technical exploitation rather than trading ability.

Latency Trading
Taking advantage of delays (latency) in price feeds, execution, or data updates between systems is prohibited.
- This creates an unfair edge, relies on loopholes, and disrupts fairness.
- Accounts using latency strategies will be disqualified or revoked.

Exploitation of Technical Issues
Exploiting platform-related issues (such as data feed delays, server freezes, or glitches) is strictly prohibited.
- Traders attempting to benefit from disruptions will face review and possible removal.
- Report issues immediately to our support team instead of exploiting them.

Hedging
Hedging across multiple accounts, connected accounts, or different firms is not allowed.
- Only hedging within a single account by the same trader is permitted.
- Manipulative or coordinated hedging will result in disqualification.

Account Sharing
Sharing, distributing, or selling your account to another person or third party is prohibited.
- All trading must be conducted only by the registered account holder.
- We enforce a zero-tolerance policy for account sharing.

You need to trade for a total of 5 days before being able to request a payout.

$2,000 x 3 then account will breach

You can get 3 payouts per account, once 3 payouts have been achieved. The account will be breached.