A profitable day is a day on which the closed positions made a positive profit of at least 0.5% of the initial balance (NET PROFIT = [Total profit - Total Loss] of the day = 0.5% profit).
The positive profit is calculated as follows: Minimum (Midnight Balance, Midnight Equity) - Previous Day Balance
Eg: Account size of $100K for you to gain a profitable day you will need to close the day with a min of $500 net in profit.
$100,000 * 0.005 = $500
Here is a detailed explanation of how to calculate it:
Required Daily Profit Amount = Initial Account Balance × 0.005
Initial Account Balance: The balance you started with when the account was first issued (e.g., at the beginning of a challenge phase).
Detailed Steps to Determine a Profitable Day.
To determine if a specific trading day counts as a "0.5 profitable day," follow these steps:
1. Identify the Base Balance: Confirm the relevant balance according to the specific rules you are following (usually the initial account size).
2. Calculate the Target Profit Amount: Multiply the base balance by 0.005 (which is 0.5%) to find the exact dollar amount needed for that day.
Example 1: For a $100,000 account, the target is $500 for the day as the 0.5%
Example 2: For a $10,000 account, the target is $50 for the day as the 0.5%
3. Track Net P/L for the Trading Day: Throughout the designated trading day (usually from midnight to midnight in the platform's server time), track the net profit or loss from all closed positions. This can be achieved through multiple small trades or one larger move.
4. Compare Net P/L to the Target: At the end of the day, if your net profit amount is equal to or greater than the target amount calculated in Step 2, the day qualifies as a "0.5 profitable day".
Important Considerations and Rules
Consistency, Not Sequence: These profitable days do not typically need to be consecutive; you just need to accumulate the required number of qualifying days (commonly three) to meet a program objective.
Overall Balance Constraint: Some firms have an additional rule that even if you achieve 0.5% profit in a single day, it will not count if your account's overall balance is still below the original starting balance (e.g., due to previous losses), but that’s not the case in Moneta Funded: regardless of whether you’re above or below the original starting balance, the 0.5% profit in a single day will count for any day achieved.
Risk Management: This rule encourages consistent and sustainable trading performance rather than relying on a single lucky high-risk trade. It emphasizes managing risk to achieve small, steady gains.