Evaluation (challenge)
A prop firm's paid test: hit a profit target without breaking the rules to earn a funded account.
The evaluation (or challenge) measures your discipline: reach a profit target while respecting the drawdown and rules, sometimes within a time limit. Passing it unlocks a funded account. Price, target and drawdown type set its real difficulty.
In depth
The evaluation (or 'challenge') is a prop firm's entrance exam: a phase, on a simulated account, where you must prove you can reach a profit target without breaching the risk limits. Passing unlocks the funded account; failing means starting over, often via a paid reset.
Formats vary: one- or two-step evaluation, profit target as a percentage, associated drawdown, sometimes a minimum number of traded days or consistency rules. A firm's true cost isn't read only in the challenge price, but in the real probability of passing it AND holding up afterward: a low target with a tight trailing drawdown can be harder than a high target with a generous EOD drawdown.
In practice, choose your evaluation by looking at the target/drawdown pair rather than the price alone, and check the side rules (minimum days, consistency). Our 'Find your prop firm' tool and the comparator help match the format to your style.
Target +6% without hitting the drawdown → eval passed, funded account unlocked.
Aiming to pass the evaluation as fast as possible by forcing risk. An eval passed by over-risking creates a trader who'll blow the funded account right after. The goal isn't to pass the exam, it's to build the behavior that keeps you funded afterward.
Frequently asked
One- or two-step evaluation, what's the difference?
One step: a single target to reach before funding. Two steps: two successive phases, often with lower targets but a longer path. The choice depends on your style and tolerance for rules.
What happens if I fail the evaluation?
It's lost; you must restart, usually via a paid 'reset' or a new challenge. Hence the importance of not treating it as an over-risk sprint.
Is there a time limit to pass the eval?
More and more firms impose no time limit, but some keep a deadline or a minimum number of days. Check the rules before choosing.
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