Glossary · Prop-firm trading

Evaluation

The phase or phases a trader passes to be funded: a profit target to reach without crossing the firm's loss lines.

Many firms run two phases with a target in each - commonly 8% or 10% in the first and 5% in the second - and some run one. Every phase carries the same loss lines as the funded account after it, so the evaluation is the rules, practised.

The published analyses linked from the firm pages put the daily loss limit first among the reasons evaluations fail, ahead of the maximum loss and the target.

Also called

challenge, assessment, phase 1 and phase 2