I recently found myself in a perplexing situation: by my own calculations, I had four profitable days in a row.
Yet, my prop firm’s dashboard insisted I’d only chalked up one. As frustrating as that was, it all boiled down to a rule about “lowest midnight equity or balance.”
In this post, I’ll share exactly how I discovered this mismatch, highlight the difference between the firm’s and my own numbers, and offer ideas for navigating similar scenarios so you don’t get blindsided.
1. My Stats Showed Four Profitable Days
When I looked at my daily progress, I compared the end‐of‐day balance to the prior day’s balance. Over a sequence of days:
Below is a simplified day‐by‐day breakdown, comparing each day’s ending balance to the previous day’s. If the increase is more than $100, that day is marked as profitable under the 0.5% criterion.
| Date | Previous Day’s Balance | Ending Balance | Daily Net | ≥ $100? |
|---|---|---|---|---|
| Jan 24 | $ 20,000 (Initial) | $ 19,998 | –$ 2 | No |
| Jan 25 | $ 19,998 | $ 19,998 | $ 0 | No |
| Jan 26 | $ 19,998 | $ 19,998 | $ 0 | No |
| Jan 27 | $ 19,998 | $ 21,003.20 | +$ 1,005.20 | Yes |
| Jan 28 | $ 21,003.20 | $ 21,167.10 | +$ 163.90 | Yes |
| Jan 29 | $ 21,167.10 | $ 21,290.50 | +$ 123.40 | Yes |
| Jan 30 | $ 21,290.50 | $ 21,601.26 | +$ 310.76 | Yes |
- Jan 24, 25, 26: Gains (or losses) under $100, so they do not meet the 0.5% threshold.
- Jan 27: I was up around 5.03%
- Jan 28: I was up another 0.78%
- Jan 29: I was up 0.58%
- Jan 30: I finished up 1.46%
All four days pushed me comfortably above the common 0.5% “profitable day” benchmark (which, on a $20,000 account, is $100 a day). So naturally, I was quite pleased to have passed the challenge.
2. The Prop Firm’s Snapshot: Only One Day Passed the Threshold
The head‐scratch came when I checked my prop firm’s dashboard, and they insisted I only had one “profitable day” in that same stretch. Their explanation rested on a specific rule:
- At midnight, they record both my account’s “Balance” (closed trades only) and “Equity” (which includes open positions).
- They take whichever number is lower.
- They measure the difference between that lower number and the previous day’s midnight balance.
- If the gap is more than 0.5% of my initial balance (i.e., more than $100 on $20k), the day is officially “profitable.” If it’s $99.50, that’s just not good enough.
A Peek at Their Data
They provided me with a table of Midnight Balance and Midnight Equity for a few days:
| Date | Midnight Balance | Midnight Equity | Lowest Value |
|---|---|---|---|
| 23 Jan | 19,998.0 | 20,262.0 | 19,998.0 |
| 24 Jan | 19,998.0 | 20,262.5 | 19,998.0 |
| 25 Jan | 19,998.0 | 20,262.5 | 19,998.0 |
| 26 Jan | 21,003.2 | 21,407.0 | 21,003.2 |
| 27 Jan | 21,167.1 | 21,091.7 | 21,091.7 |
| 28 Jan | 21,290.5 | 21,221.58 | 21,221.58 |
Then they do a day‐by‐day calculation. For Jan 26, for instance:
- Previous midnight balance was $19,998.0
- Jan 26’s lowest midnight value is $21,003.2
- The difference is $21,003.2 − $19,998.0 = $1,005.20
- That’s above $100 ⇒ “profitable day.”
But the next midnight snapshots don’t maintain that same gap above $100—even if my end‐of‐day balance looked higher to me.
3. Where the Discrepancy Comes From
- Midnight vs. End of Day
I generally track how I’m doing when the trading day finishes (or when I manually stop). But the firm pins my results to that one moment at midnight, which can be hours before or after I considered the day “done.” - Unrealized P/L Can Dip
If I hold open trades overnight, they might temporarily go into a drawdown around midnight. By the morning, they could recover—and by day’s end, I think, “Yes! I’m profitable.” But for the prop firm, that midnight dip is the snapshot they use. - Strict Threshold
Even a +$90 daily gain doesn’t meet the 0.5% rule (on $20k). It’s not about whether I’m overall up, it’s that each day needs to be more than $100 from one midnight to the next.
4. How I Plan to Adapt My Trading
- Close or Partial‐Close Before Midnight
If I see I’m up $120 at 11 p.m., I might lock in at least $100 in realized gains, avoiding the risk of a midnight dip. - Use Stops to Protect Gains
Moving stop‐losses closer to the price when I’m near the daily threshold helps ensure I stay above it at midnight. - Track Both My Own “End‐of‐Day” and Their “Midnight”
I keep a personal log of what I truly consider a winning day, but also note the firm’s official classification so there are no surprises on their dashboard. - Focus on Bigger‐Picture Gains
Even if they only mark me with one profitable day, my actual account might still be steadily growing. In the long run, overall consistency matters more than how many “official” profitable days they grant me.
5. Why Some Firms Use This Rule
Prop‐firms or funded‐trader programs often need a straightforward benchmark. By sticking to a fixed fraction of the initial balance—rather than your current balance—they simplify the evaluation process. It also keeps traders motivated to aim for meaningful daily gains, rather than small incremental moves that might not demonstrate enough consistency or risk management.
6. Caveats and Considerations
- Open vs. Closed Profit: This rule typically applies to closed trades only. If you have open positions at the day’s end that are in profit but not closed, they do not count.
- Intraday Drawdown: The day’s profit calculation doesn’t care if you went through a big drawdown midday, as long as you closed the day with over $100 net profit.
- Risk Management: Aiming solely for daily profit targets can sometimes lead to over‐trading or increased risk. It’s best to keep risk management and position sizing in mind, even while pursuing the daily threshold.
Conclusion
Understanding a prop firm’s “lowest midnight value” rule has saved me a lot of confusion and frustration. While I know I had four solid days in my own book, the firm only saw one big enough jump at midnight to call it “profitable.” If you ever notice a big gap between your personal trading results and the firm’s reports, take a look at how they define daily performance.
Once you align your strategy with their specifics—especially around midnight snapshots—you’ll have far fewer surprises, and you can focus on what matters most: growing your account responsibly and consistently.
Follow Joshua for daily forex tips on X: @thetraderinyou or connect with him on LinkedIn: Joshua Okapes.
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