How prop firm evaluations work
Every evaluation is a set of numeric rules. If you understand the five core numbers you can compare almost any firm.
The five core rules
Almost every evaluation is defined by these numbers:
- Profit target: how much you must make to pass (for example 6% of the account).
- Maximum drawdown: how far your account may fall before it is closed. See the drawdown guide: this is the most important rule.
- Daily loss limit: an optional cap on how much you may lose in one day.
- Minimum trading days: the fewest days you must trade before you can pass.
- Position limits: maximum contracts (futures) or lots/leverage (forex) you may use.
1-step, 2-step and instant funding
Forex and CFD firms often offer a 1-step or 2-step evaluation. In 2-step programs you must pass two phases, usually with a lower target in the second. Futures firms typically use a single evaluation. “Instant funding” skips the evaluation but usually has a lower profit split, tighter rules and a higher price.
After you pass
You move to a funded (performance) account. New rules often apply there: a consistency rule, payout thresholds, a minimum number of winning days, or a changed drawdown. Many traders pass and then fail on these funded-account rules, which is why we list them next to the evaluation price.
Resets
If you break a rule you can usually buy a reset (a restart of the same evaluation) or a new evaluation. Reset prices vary by firm and account size. We show them when we can verify them.