Maximum Daily Floating Loss
If Maximum Daily Floating Loss > Loss for the day, then the requirement is met.
If the maximum daily loss ≤ loss for the day, then it does not meet the requirements
Calculation formula: loss for the day = profit/loss of closed positions for the day + floating profit/loss of open positions.
For example, the PropW challenge account quota is 200,000 USDT, according to the challenge requirements: the maximum daily loss limit is 10,000 USDT, if the user in the day closed trades generated a loss of 8,000 USDT, then the account in the day of the floating loss needs to be controlled within 2,000 USDT.
In other words, the loss of the challenged account for the day includes the profit and loss of the account's open trades.
If an account makes a profit of 5,000 USDT on closed trades, then the maximum loss that the account can sustain for the day is 15,000 USDT, but it cannot exceed this figure.
There is also a situation when the user closes a trade with a loss of 6,000 USDT and then the user opens a new trade with a floating loss of about - 5,000 USDT, the calculation of the equalized profit/loss results in a positive position, but, unfortunately, one natural day has passed (calculated in the time zone of UTC+8), which means that at a certain point in time the user's loss for the day will be -11,000 USDT, which is more than the maximum daily floating loss limit of 10,000 USDT allowed for the account. This exceeds the maximum allowed daily floating loss limit of 10,000 USDT.
In other words, in the platform's calculation model, the account's closing profit/loss is reset at 00:00 UTC+8 time zone, at which point the closing profit/loss is reset to zero.
For example: let's say that one day the user has a profit of 4,000 USDT, and on the same day the user has an open position with a current open loss of 13,000 USDT, then on that day the user has not violated the maximum daily limit of the open position because the loss for the day is 9,000 USDT (profit on closed position 4,000 USDT - loss on open position 13,000 USDT)
However, if the user continues to hold the position with an open loss of 13,000 USDT after 00:00 UTC+8 and does not generate a new Float or Close Profit, the Maximum Daily Float Limit requirement will be violated. This is because the user's profit of 4,000 USDT from the previous day is not counted for the new day and the open loss of 13,000 USDT exceeds the Maximum Daily Liquidity limit of 10,000 USDT.
In summary, the maximum daily loss figure is set to provide traders with enough trading space to ensure their daily risk range. Considering the extreme volatility of the crypto-digital currency space, both platforms and traders will benefit from this rule.
Maximum Account Float
If the Maximum Account Floating Loss > Total Loss for any period, the requirement is met
If Maximum Account Loss ≤ Total Loss for any period, then the requirement is not met.
Calculation formula: Loss during the challenge period = profit/loss after closing a position in any period + floating profit/loss on open positions.
For example, if the PropW challenge account quota is 200,000 USDT, at any point in time during the trading period of the account, the total sum of the closed position loss and floating loss of the trading account must not exceed 200,00USDT.
The logic of calculation is the same as the Maximum Daily Loss, which can be viewed by clicking on the concept of Maximum Daily Floating Loss; the only difference is that it is not limited to one day, but to the entire duration of the Challenge Period and the period of use of the PropW trader's account.
Profit target
The Profit Target is the profit that the user will make from trading while meeting other trading constraints.
It is important to note that this profit must be from closed positions and any floating profits will not be counted.
For example, if the user has an account quota of 200,000 USDT and trades in the Regular Mode in the first stage of the PropW Challenge, with a profit target of 20,000 USDT, this means that the user's PropW account should have an amount of not less than 22,000 USDT after all closed positions have been filled.