Common Evaluation Mistakes

Most failed prop firm evaluations don’t fail because the trader “can’t win.” They fail because of repeated rule violations and basic risk errors that are built into the structure of the test.

1. Not Reading The Rules Carefully

Every firm has its own rules for:

• Maximum daily loss
• Overall drawdown (trailing or static)
• News restrictions
• Overnight holds
• Allowed products and position size

A large chunk of failed evaluations happen because traders assume the rules are “standard” across firms and never check the firm’s official documentation.

2. Ignoring The Daily Loss Limit

The daily loss limit is a hard stop for the account. Once it’s hit, the evaluation is usually over.

A common pattern:

• Trader takes several small losses early in the session
• Tries to “make it back” with larger size
• One bad move pushes the account past the daily limit

3. Oversizing After A Good Start

Traders often increase contract size as soon as they get ahead of the starting balance. In a trailing drawdown structure, this can push the account into violation quickly.

One or two larger losing trades can erase multiple days of progress and trigger both the daily and overall drawdown limits.

4. Misunderstanding Trailing Drawdown

Trailing drawdown moves up as new highs are made. Many traders assume it behaves like a static cushion and keep trading as if the floor never changes.

Typical issues:

• Letting open profits run very high, which moves the drawdown floor up
• Holding through a reversal that brings equity down close to the new floor
• Not realizing that a “normal” pullback can now violate the account

5. Holding Through Restricted News Events

Some firms restrict trading during major economic releases. If a trader opens or holds positions through restricted news, it can count as a rule violation even if the trade wins.

The firm’s news calendar and restricted events list are usually published on their site or in their documentation.

6. Trading Too Many Products At Once

Evaluations are often built around a few liquid markets (ES, MES, NQ, MNQ, CL, GC). Traders who bounce between thin markets or trade multiple symbols at once can:

• Increase slippage and spread cost
• Lose track of overall exposure
• Hit limits faster than expected

7. Not Flattening Before The Cutoff

Most futures prop firms require all positions to be closed before a certain time each day.

Common mistake:

• Staying in a trade too close to the firm’s cutoff time
• Forgetting about extended session rules
• Assuming the platform will close all trades automatically when it may not

8. Treating The Evaluation Like A One-Time Lottery Ticket

Evaluations are structured as tests of consistency. Going all-in on a single large trade or taking outsized risk because “it’s just a evaluation” frequently leads to instant violation.

9. Not Tracking Progress Against The Rules

Some traders know the rules at the start but stop tracking:

• Current balance relative to profit target
• Distance to daily loss limit
• Distance to trailing or static drawdown floor

Without a simple way to see those numbers, it’s easy to push one trade too far and cross a line without noticing.

The Core Pattern Behind Most Failures

The most common pattern is simple:

• Underestimating how strict the risk rules really are
• Oversizing or overtrading after a good run
• Breaking a hard rule (daily loss, drawdown, news, or cutoff time)

The evaluation structure is designed to enforce discipline and risk limits. Once a rule is broken, the account is usually considered failed, regardless of how good earlier trades looked.