Getting Started
Evaluation Challenge
Definition
A test phase where traders must meet profit targets while staying within risk limits to qualify for a funded account.
How It Works
Most prop firms require traders to prove their skills before giving them capital. The evaluation typically has one or two phases ("steps"), each with a specific profit target (e.g., 8% in Step 1, 5% in Step 2) and maximum drawdown limits.
Traders pay a one-time fee to enter the challenge, which ranges from $50 to $1,000+ depending on account size. If you pass, you receive a funded account.
If you fail, you can often retry by purchasing another challenge or using a free reset (some firms offer this). The evaluation period may be unlimited or have a maximum number of trading days.
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