Recording Profits from Partial Closures
At AFT Funded, we support dynamic trade management, including scaling out of positions to lock in gains. To keep performance tracking clear and milestone calculations accurate, we follow a defined protocol for recording realized profit.
For performance requirements, including Profitable Trading Days and the Best Day Rule, profit is recognized based on completion of the full trade cycle.
The Final Closure Rule
Profit from a partial-closure strategy is recorded only on the final day when all remaining portions of that trade have been fully closed.
Even if you realize gains over multiple days by closing partial lots, the total net result for that specific trade ID is attributed to the date of final liquidation.
Practical Example
Imagine you open a high-conviction Gold (XAUUSD) trade and scale out over a week:
- Monday (March 25): Open 1.00 lot XAUUSD.
- Tuesday (March 26): Close 0.20 lots for +$120.
- Wednesday (March 27): Close 0.50 lots for +$190.
- Thursday (March 28): Close remaining 0.30 lots for +$50.
Recording Outcome: The total profit of $360 for the full 1.00-lot trade is recorded on Thursday, March 28.
Why This Matters
- Profitable Trading Days: If you are targeting the daily 0.5% threshold, ensure your final closures on that day satisfy the requirement. Earlier partial gains are pooled into the final close date.
- Strategic Planning: This method encourages full lifecycle planning and simplifies milestone tracking in your dashboard.
- Accuracy: Best Day and related performance metrics are calculated from completed trade decisions, not fragmented partial events.
Summary
Partial closures remain a valuable risk-management tool and are fully supported. The realized money from each partial close is yours immediately, but statistical performance recording is applied when the final fraction of that position is closed.