Understanding the process of proving your trading skills to access capital
Trading evaluations are designed to determine whether a trader can manage risk consistently in live market conditions. Before accessing firm capital, traders must trade an evaluation account and follow predefined rules that mirror real funded trading environments.
The evaluation phase exists to measure discipline, not short-term performance spikes. It's about proving you can protect capital while generating consistent returns.
To separate traders who rely on luck from those who have genuine skill and risk management abilities.
A evaluation account is used to assess how a trader handles drawdowns, position sizing, and emotional pressure. The goal is to confirm that profits are generated through controlled execution rather than aggressive risk taking.
How do you handle losing streaks? Can you stick to your plan under pressure?
MindsetDo you risk too much on single trades? Can you follow drawdown limits?
DisciplineAre your profits repeatable or just lucky one-time wins?
SkillMost funding programs include specific rules that are enforced automatically to ensure fairness and consistency across all traders.
Typically 8-10% gain required to pass
Usually 5-6% maximum loss allowed
Often 3-4% per day maximum
Usually 5-10 minimum trading days
$50,000 account • Profit Target: $5,000 (10%) • Max Drawdown: $3,000 (6%) • Daily Loss Limit: $1,500 (3%) • Minimum 10 trading days
Trading evaluations are structured to reward repeatable performance. Large profits achieved in a single day often fail evaluation rules if they violate consistency or drawdown requirements.
+1%, +1.5%, +2%, +1%, +1.5% = Sustainable
✅ PASSShows controlled, repeatable strategy
+8% in one day, then break even = Unsustainable
❌ FAILCould be gambling, not skill
Select account size and pay one-time fee
Follow profit target and drawdown limits
Meet all requirements within time limit
Access firm capital and keep profits
Once a trader passes the evaluation phase, they move into funded trading using firm capital. While profit targets are removed or adjusted, risk rules remain in place to protect capital and ensure long term sustainability.
• Profit targets removed or reduced
• Drawdown limits remain active
• Profit splits begin (usually 80-90% to trader)
• Regular payouts available
Taking too many trades to hit target quickly
❌ MistakeLetting losses accumulate without stopping
❌ MistakeTrading without clear entry/exit rules
❌ MistakeTrying to recover losses quickly
❌ Mistake
