> For the complete documentation index, see [llms.txt](https://docs.propw.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.propw.com/help-center/propw-trading-rules/definition-of-relevant-concepts-and-calculations.md).
# Definition of relevant concepts and calculations
**Minimum Profitable Trading Day**
Under PropW’s updated rules, users are required to achieve a specified number of profitable trading days during the challenge phase in order to pass the corresponding stage assessment.
This rule must be used together with the Daily Profit Threshold .\
\
**Calculation Rule**
A profitable trading day is determined based on end-of-day realized performance (UTC+8):
At 00:00 (UTC+8) each day, the system calculates the user’s total realized profit of the day (net of trading fees).
The evaluation logic is as follows:
* If daily realized profit ≥ Daily Profit Threshold, the day is counted as 1 valid profitable trading day
* If daily realized profit < Daily Profit Threshold, the day is counted as 0 valid profitable trading days
Definition of a Valid Profitable Trading Day
A day is counted as 1 valid profitable trading day only if:
* The user has executed at least one closed position (realized trade) during the calendar day (UTC+8), and
* The net realized profit for that day meets or exceeds the configured threshold
Important notes:
* Partial profit or loss during the day is aggregated into a single daily result
* Multiple trades in the same day are still counted as one daily performance unit
* Floating PnL (unrealized profit/loss) is not included in the calculation
* Trading fees are deducted when calculating daily net profit
* If the user closes positions but ends the day in loss or below threshold → not counted
Example
If the Daily Profit Threshold is 500 USDT, and a user:
* May 1: Realized profit = 800 USDT → 1 valid profitable trading day
* May 2: Realized profit = -200 USDT → 0 valid profitable trading days
* May 3: Realized profit = 500 USDT → 1 valid profitable trading day
Then the total number of valid profitable trading days = 2 days
Calculation Time
* The system evaluates daily profit at 00:00 (UTC+8)
* Each calendar day is independently evaluated
* Accumulated profitable trading days are not reset unless challenge state changes
Rule Change & Applicability
* After the rule update goes live, newly purchased challenge accounts will adopt the new “Minimum Profitable Trading Day” logic
* Accounts purchased before the update will continue to follow the previous Minimum Trading Day rule until:
* Challenge failure occurs, or
* Account transitions into funded/live phase
* Platform operations must issue official announcements and in-app notifications to all users regarding this change
Single-Indicator Completion Optimization (Edge Case Rule)
In scenarios where a user has already met all other challenge requirements and only the Minimum Profitable Trading Day remains incomplete:
* The system will perform real-time evaluation at position close
* If the user’s cumulative realized profit for the day ≥ threshold, the day is immediately counted as a valid profitable trading day (+1)
* The system will:
* Immediately trigger backend approval submission
* Lock the front-end displayed data state
* Mark the challenge as completed without waiting for 00:00 (UTC+8) batch calculation
During this state, the user dashboard will display fully completed status, including the Minimum Profitable Trading Day requirement.\
\
**Daily Maximum Loss**\
This rule may also be referred to as the "Trader's Daily Stop Loss." According to our rules, at any point during a day (UTC+8), the sum of all realized profit/loss and the floating profit/loss of open positions must not reach the daily maximum loss limit set by the challenge rules. The calculation formula is as follows:
Current Result = Realized Loss Today + Unrealized Loss\
\*This result does not include estimated closing fees; please refer to the actual closing amount.
For example, if the PropW challenge account has a balance of 200,000 USDT and the daily maximum loss limit is 10,000 USDT, and the user has incurred a realized loss of 8,000 USDT from closed trades during the day, the floating loss of the account must be kept within 2,000 USDT.
This means that the daily loss of the challenge account also includes the profit/loss from open positions. If the user has a realized profit of 5,000 USDT from closed trades during the day, the maximum floating loss the account can sustain that day is 15,000 USDT, but it must not exceed this amount.
Note: The daily maximum loss resets at 00:00 (UTC+8)!
Example of Carrying Positions Overnight\
For instance, suppose a user has a realized profit of 4,000 USDT on a given day. On the same day, the user has an open position with a floating loss of 13,000 USDT. The user does not violate the daily maximum loss requirement that day, as the daily loss is 9,000 USDT (realized profit of 4,000 USDT + floating loss of 13,000 USDT). However, if the user continues to hold this position after 00:00 UTC+8 without generating new floating profit or realized profit, they will violate the daily maximum floating loss limit. This is because the 4,000 USDT profit from the previous day does not carry over to the new day, and the 13,000 USDT floating loss exceeds the 10,000 USDT daily maximum floating loss limit.
In summary, setting a daily maximum floating loss provides traders with sufficient trading flexibility while ensuring intraday risk controls. Given the extreme volatility of the cryptocurrency market, this rule benefits both the platform and traders.
**Account Maximum Loss**\
This rule may also be referred to as the "Account Stop Loss." Throughout the account's lifetime, the net asset value of the trading account must not fall below the initial account balance multiplied by the account maximum loss requirement ratio. The formula for calculating net account value is as follows:
Current Result = Entrusted Trading Assets - Current Account Balance\
\*This result applies only when the entrusted trading assets are at a loss.
For example, if the initial balance of a PropW challenge account is 100,000 USDT and the account maximum loss requirement is 8%, the net asset value must not fall below 92,000 USDT.\
Similar to the daily maximum loss, the calculation of net account value includes both realized profit/loss and floating profit/loss from open positions. The difference lies in that this rule does not impose a daily limit but applies throughout the challenge period. This limit also includes trading fees and funding costs.
The account maximum loss requirement provides traders with sufficient leeway to navigate periodic drawdowns while still maintaining the ability to complete the challenge. For investors, this rule ensures that the maximum loss of the trading account is strictly limited to a predetermined range under any circumstances.
**Profit Target**\
The profit target refers to the profit generated by the user through trading while satisfying other trading restrictions. Note that this profit must be realized (positions must be closed); any floating profit will not be counted.
For example, a user participating in the first stage of the PropW challenge in standard mode with a quota of 200,000 USDT has a profit target of 20,000 USDT. This means that after closing all positions, the user's PropW account balance must be no less than 220,000 USDT.
**Impact of Withdrawing Profits on the Challenge**\
When a user requests a withdrawal of account profits (i.e., withdrawing realized profit) during a live account phase, the withdrawn amount will no longer be counted as realized profit. This affects the calculation of both the daily maximum loss and the account maximum loss. The specific rules are as follows:
If the realized profit for the current day is ≥ the withdrawal amount, the realized profit for the day will be reduced by the withdrawal amount.\
If the realized profit for the current day is < the withdrawal amount, the realized profit for the day will be considered 0.
Example:\
A user's challenge account has 10,000 USDT, and the daily maximum loss requirement is 500 USDT.\
If the realized profit for the day is 2,000 USDT, and the user withdraws 1,500 USDT on the same day, the maximum daily loss allowed is 1,000 USDT ((2,000 - 1,500) + 500).\
If the realized profit for the day is 0 USDT, and the user withdraws 1,000 USDT from the realized profit of a previous day, the maximum daily loss allowed is 500 USDT (the daily maximum loss requirement is 500 USDT).\
\
**Maximum Holding Period**\
This rule is used to limit the maximum duration that a position may remain open. According to PropW’s trading rules, any position must be fully closed within the specified holding period. Positions that exceed the maximum holding period will be automatically liquidated by the system.\
\
The calculation rule is as follows:\
Maximum Holding Period = 10 calendar days\
\
The holding period includes weekends and public holidays and is calculated continuously without interruption.\
\
Holding Period Calculation Rules\
The holding period is calculated based on the original position opening time.\
\
Calculation Start Time: The time at which the position is successfully opened.\
\
Expiration Time: Opening execution time + 10 calendar days (the opening day itself is not counted as one of the 10 days), calculated precisely to the second.\
\
For example:\
If a user opens a position on June 1 at 10:00:00 (UTC+8), the latest time by which the position must be closed is June 11 at 10:00:00 (UTC+8).\
\
The following actions do not affect the holding period calculation:
* Increasing the position size
* Reducing the position size partially
* Adjusting margin
* Any other modifications to the existing position
The holding period is always determined by the original opening time of the position.\
\
Forced Liquidation Upon Expiration\
If a position remains open after reaching its maximum holding period, the system will automatically execute a market order to close the remaining position.\
\
The forced liquidation process is as follows:
* Once the expiration time is reached, the system automatically triggers a market close order.
* The resulting order will be marked as “Forced Liquidation”.
* The user will receive a liquidation execution report after the position has been closed.
* The reason for the liquidation will be recorded as “Holding Period Expired”.
Example\
If a user:
* Opens a position on June 1 at 10:00:00
* Partially closes the position on June 3
* Adds additional margin on June 4
* Continues holding the position
The maximum holding period remains based on the original opening time of June 1 at 10:00:00.\
\
If any portion of the position remains open after June 11 at 10:00:00, the system will automatically close the remaining position at market price and mark the transaction as Forced Liquidation due to Holding Period Expiration.\
\
Note：\
The maximum holding period is calculated using calendar days and includes weekends and public holidays. Traders are responsible for monitoring the expiration time of their positions and ensuring that positions are closed before the holding period limit is reached. Any profit or loss resulting from forced liquidation will be borne by the trader.\
\
**Consistency Rule**\
To encourage and cultivate more robust and sustainable trading growth strategies among traders, PropW officially introduces the Consistency Rule. When you submit a request for profit withdrawal, you must satisfy the conditions of the Consistency Rule before your withdrawal application can proceed to the review process.\
\
This rule applies to all withdrawal requests and shall be applied in conjunction with the requirement that cumulative net profit remains positive.\
\
Calculation Rules
The Consistency Ratio is calculated based on the realized net profit performance during the current withdrawal cycle (UTC+8):
For each withdrawal request submitted, the system computes the cycle data spanning from the effective date of the previous withdrawal request (00:00:00 UTC+8) to the day immediately preceding the current withdrawal request (23:59:59 UTC+8).
The evaluation logic is as follows:
* Extract the maximum single-day realized net profit within the cycle (the highest value of realized net profit achieved in any single calendar day);
* Extract the cumulative realized net profit within the cycle (the sum of realized net profit across all calendar days in the cycle);
Consistency Ratio = Maximum Single-Day Realized Net Profit ÷ Cumulative Realized Net Profit of the Current Withdrawal Cycle × 100%.\
Net Profit = Today’s Realized PnL − Opening Trading Fee\
\
Eligibility Requirements
The current consistency ratio must be ≤ 45%, and
the cumulative net profit over the current withdrawal cycle must be > 0.
Both conditions must be satisfied simultaneously in order to meet the consistency prerequisite for profit withdrawal.
Important Notes
* Net daily profit refers to the net profit (after deducting trading fees) from all closed positions within a given calendar day (UTC+8).
* Floating profit/loss (unrealized gains/losses) shall not be included in the cumulative net profit for the period or in the calculation of the maximum single-day net profit.
* Each withdrawal cycle commences at the starting point of the previous valid withdrawal request (i.e., 00:00:00 on the date when the request was successfully submitted and approved) and concludes at 23:59:59 on the day immediately preceding the current withdrawal request.
* If the account has never had a valid withdrawal request, the calculation period shall begin at 00:00:00 on the date when the account first entered the live-trading/funded stage.
Example 1 – Compliant with Consistency Rule
* Maximum single-day net profit: 2,500
* Cumulative net profit (current cycle): 10,000
* Consistency ratio: 25%
* Result: Eligible for profit withdrawal (subject to other rules)
Example 2 – Non-Compliant with Consistency Rule
* Maximum single-day net profit: 5,500
* Cumulative net profit (current cycle): 10,000
* Consistency ratio: 55%
* Result: Currently ineligible for profit withdrawal
\
How to lower the consistency ratio?\
If the current consistency ratio exceeds 45%, there is no need to restart the challenge or reset the account. Simply continue to trade steadily, accumulate profits consistently, and make every effort to avoid generating any new higher single‑day net profit figures. As the cumulative net profit grows while the maximum single‑day net profit remains unchanged, the consistency ratio will automatically decline over time.\
\
Example:
* Current Status: Maximum single-day net profit = 5,500; Cumulative net profit = 10,000; Consistency ratio = 55%.
* After continued stable profit accumulation: Maximum single-day net profit = 5,500; Cumulative net profit = 15,000; Consistency ratio = 36.67%.
Once the platform’s requirements are met, you may proceed to submit a normal profit withdrawal request.\
\
Timing of Calculation\
The system performs a real‑time calculation of the consistency ratio upon each submission of a withdrawal request.
The calculation period is dynamically determined based on the date of the last valid withdrawal request.
The cumulative net profit and the maximum single‑day net profit within the period are not automatically reset unless a valid withdrawal occurs (i.e., the withdrawal request is approved and executed).
---
# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.
## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.
Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:
```
GET https://docs.propw.com/help-center/propw-trading-rules/definition-of-relevant-concepts-and-calculations.md?ask=&goal=
```
`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.
Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.