8 Easy Ways to Achieve Consistency in Prop Trading

Consistency in forex is simply your ability to utilize a trading strategy regularly to produce a higher percentage of positive (and reliable) results over a period of time irrespective of market conditions.

In this article, we’ll share simple things you can do to help you achieve consistency in your prop trading journey:

1. You must adhere to your prop firm’s trading rules

Every prop firm has its own set of trading rules or instructions. It can be drawdown limits rules, position sizing rules, trading restrictions or profit targets.

You must understand each rule and trade cautiously to avoid any violation (if you want to achieve consistency).

2. Focus on a few market environments (trading pairs)

Less is more when it comes to forex trading. Monotasking and streamlining gives a superpower.

(Apart from saving yourself from unnecessary distractions), if you concentrate more on limited market environments (say 1 or 2 trading pairs) and carefully study their behaviors & patterns, you would easily identify recurring patterns and make sound decisions.

3. Always backtest your strategy before use

You should test your strategy on a historical data, on different market conditions, in other to have a picture of how it would perform in a live market.

You would learn its strengths and weaknesses, and as a result build your confidence for live market scenarios.

4. Master and maintain a single trading strategy

Mastering a single trading strategy is another great way to achieve consistency.

It helps you filter market noise, identify high probability setups, and situations where your strategy may underperform.

In other words, it helps you make fewer trading mistakes and know the “best” environments for your strategy.

5. Optimise your strategy for high volatility

Volatility cannot be avoided in trading. Thus, it is vital you modify or tweak your strategy to be effective in high volatile situations. This would certainly give you an trading edge.

During periods of high volatility, prices tend to swing a lot, optimizing your strategy can help you identify swings and capitalize on them.

Strategy optimisation can also limit your exposure to huge losses. It can help you re-evaluate your entry and exit points and set a healthy risk-to-reward ratio.

6. Do a thorough market analysis (research)

Doing deep market examination gives you a higher confidence on where to set as entry and exit points. (Still an aspect of strategy optimisation).

It helps you anticipate possible price fluctuations, and safely position your trades.

7. You must work with a clearly defined trading plan

As we all know, trading without a plan is trading to fail. A strategic plan saves you from taking impulsive decisions, it prevents you from being overwhelmed by your emotions.

To achieve consistent growth in your trading career, you must always have a clearly defined plan before you enter a trade.

8. Practice patience, and be comfortable with taking breaks

The role of patience in trading is often underestimated. Patience can take you from zero to a consistently profitable level.

It means avoiding greed, FOMO or other forms of impulsive trading.

Also, you should learn to take a break from time to time. There will always be other profitable opportunities. Avoid trading non-stop.

Listen to your mind, listen to your body, listen to the market.

In summary, consistency is the path to successful trading. To achieve it, you must develop a non-impulsive & effective trading system and follow prop firm rules.