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Daily Profit-Cap rule for Model 3

Updated over 5 months ago

With Model 3 you are opted to choose between Best Day rule or Profit cap, depending on which one suits your trading style the best.

Profit Cap explanation:

The daily maximum profit cap is a rule designed to promote steady, consistent trading to prevent restricted trading strategies, and its one of 2 consistency rules you can select from on Model 3 account.

It establishes a daily limit on the maximum profit you can achieve, calculated as a percentage of your initial account balance.

Example:

The Daily Profit Cap is set at 1.2% of your initial account balance. If your initial account balance is $100,000, your Daily Profit Cap is $1,200 (1.2% of $100,000). For instance, If your account balance at the start of the new day is $101,000, then the Daily Profit Cap level is set to $102.200.

If your profit exceeds 1.2 % within the trading day (trading day = 00:00 - 23:59 UTC+2), ​the balance will increase but the profit generated over the limit won't count towards the profit target or payout allowance.

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