A prop firm evaluation-also called a challenge-is a simulated trading account that
allows you to prove your skills and risk management. If you meet the requirements,
you’ll earn a funded account and the opportunity to keep the majority of the profits.
What Is a Prop Firm Evaluation?
An evaluation is a simulated account with virtual funds provided by the prop firm.
It's designed to test your ability to trade consistently, manage risk, and follow rules.
There is no real money risk to you during the evaluation.
The goal is simple: prove you can be consistent and protect capital.
If you do, you get funded.
What Happens During an Evaluation?
During the challenge, you must follow specific rules and reach the profit target.
Here are the key components:
Profit Target
Reach the required profit target to pass the evaluation.
Daily Drawdown
Your balance cannot drop more than the daily loss limit.
Maximum Drawdown
Your overall equity cannot drop below the maximum drawdown.
Trading Rules
Follow all trading rules, including restrictions on strategies and EAs.
Example: $100,000 Evaluation Account
Here's what a typical evaluation might look like:
Account Size $100,000
Profit Target $10,000 (10%)
Daily Drawdown $6,000 (6%)
Max Drawdown $10,000 (10%)
Min Trading Days 3 Days
The Path to Funding
Follow these steps to earn your funded account:
1. Choose Evaluation
Pick a program and
account size.
2. Meet Objectives
Hit the profit target
while following
all the rules.
3. Pass the Challenge
Once approved,
you’ll qualify for
a funded account.
4. Get Funded
Receive your funded
account and start
trading for real.
5. Get Paid
Request payouts and
keep up to 95% of
the profits.
What Prop Firms Are Looking For
It's not about getting rich quick. Prop firms look for traders who:
- Trade consistently
- Manage risk effectively
- Protect capital
- Follow the rules
Frequently Asked Questions
How long do I have to complete the evaluation?
A proprietary trading firm-often called a prop firm-uses its own capital to fund traders.
Instead of risking your personal money, you trade simulated accounts, and if you prove
you can follow the rules and generate profits, you get access to a funded account and
keep a large share of the profits.
Can I trade any strategy during the evaluation?
A proprietary trading firm-often called a prop firm-uses its own capital to fund traders.
Instead of risking your personal money, you trade simulated accounts, and if you prove
you can follow the rules and generate profits, you get access to a funded account and
keep a large share of the profits.
What happens if I violate a rule?
A proprietary trading firm-often called a prop firm-uses its own capital to fund traders.
Instead of risking your personal money, you trade simulated accounts, and if you prove
you can follow the rules and generate profits, you get access to a funded account and
keep a large share of the profits.
Where disciplined
traders get funded.
- Up to 95% Profit Split
- Manage up to $500K
- Refundable Challenge Fee
- No Time Limit to Pass
EVALUATIONS VS. INSTANT FUNDING
Compare the two paths
to funding and see which
one is right for you.
EVALUATIONS VS. INSTANT FUNDING
Compare the two paths to funding and see which one is right for you.
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EXPLORE ALL GUIDES
Browse our full library of trading guides and build a strong foundation for long-term success.