How Evaluations Work

A prop firm evaluation is a test account with rules. If you follow the rules and reach the profit target without violating anything, you pass. That’s all it is. No hidden tricks, no special math — just a rules-based challenge.

1. The Starting Balance

Every evaluation begins with a starting balance:

• $25,000
• $50,000
• $100,000
• or whatever account size you choose

2. The Profit Target

This is the amount you must earn before you qualify for a funded account. Example profit targets:

• $1,500 on a $50k account
• $2,500 on a $100k account

You do not need to hit it in one day. You just need to reach it without breaking the rules.

3. Minimum Trading Days

Most evaluations require a minimum number of trading days. Common numbers:

• 7 days
• 10 days
• 5 days for some firms

One trade = one day. You cannot pass in a single monster trade because it would skip the learning period.

4. Maximum Daily Loss Limit

This is the most you can lose in one trading day.

Example: a $2,500 daily loss limit means if your equity drops $2,500 below your day’s starting balance, the account is failed.

5. Maximum Overall Drawdown

This is the total amount you can lose before the evaluation ends. Firms use one of two systems:

• Trailing drawdown (moves up as you make new highs)
• Static drawdown (stays fixed — simpler to track)

6. Allowed Products

Most futures prop firms only allow trading on:

• Index futures (ES, MES, NQ, MNQ, etc.)
• Some commodity futures (CL, GC, NG)
• Limited currency futures

They usually restrict:

• Options
• Crypto
• Ultra-low liquidity markets

7. Position Size Rules

Every evaluation has a maximum number of contracts you’re allowed to trade. Example:

• 3 MES max
• 1 ES max
• 4 MNQ max

8. Holding Overnight

Most prop firms do not allow overnight positions. You must flatten before the daily cutoff (usually 4:55 PM ET or similar).

9. News Rules

Some firms restrict trading during major scheduled news events such as:

• FOMC
• CPI
• NFP (Non-Farm Payroll)

Each firm publishes an official list. Always check the exact rules.

10. Passing the Evaluation

You pass when:

• You reach the profit target
• You meet the minimum trading days
• You do not violate any risk rules

After this, the firm reviews your account and moves you to their funded stage.

Important: Every Firm Has Slightly Different Numbers

The examples above are generic. Each prop firm posts its official rules, including:

• Profit target
• Daily loss limit
• Overall drawdown type
• Contract limits
• News restrictions

Always check a firm’s documentation to see their exact requirements.