Understanding the Difference Between Active Trading Days (ATDs) and Profitable Days
In trading, Active Trading Days (ATDs) and Profitable Days are key metrics, but they serve different purposes. Knowing the distinction is crucial for meeting the requirements of funding programs.
Active Trading Day (ATD)
An Active Trading Day refers to any day a trader opens new trades. It is not based on calendar days, but on when trades are initiated. For example, if you start a trade on Monday and close it on Thursday, it counts as 1 ATD. Even if multiple trades are opened on the same day, it still counts as just 1 ATD.
Profitable Trading Day
A Profitable Day is when a trader closes trades with a net profit greater than 0.5% of the initial account balance. The day of closure matters, not how long the trade lasts.
Profitable Day Requirements by Program:
- Challenge Programs: Requires at least 3 Profitable Days, each with a profit of 0.5% or greater.
- Instant Funding: No minimum number of Profitable Days is required.
Key Differences
- ATDs focus on trading activity (opening new trades), while Profitable Days focus on generating a net profit.
- ATDs are required for participation, while Profitable Days demonstrate trading success.
- ATDs don’t require profitability, but Profitable Days must meet a profit threshold of 0.5%.
In summary, ATDs measure trading engagement, and Profitable Days reflect trading success. Both are essential for different program requirements, with Profitable Days being crucial for demonstrating skill and achieving profitability.