Prop Firm Evaluation

A prop firm evaluation (also called a challenge or combine) is a structured trading test offered by proprietary trading firms. Traders pay an evaluation fee and must meet specific performance criteria — typically hitting a profit target while staying within drawdown limits — to earn access to a funded account with real capital.

How evaluations work:

1. You pay an evaluation fee.
2. You receive a simulated account at the size you purchased.
3. You must reach the profit target for that account size without exceeding the maximum drawdown.
4. Some firms require a minimum number of trading days. Fees and minimum trading days vary by firm and plan; see /prop-firm-trade-copier for current per-firm rules.
5. If you pass, you receive a funded account with a profit-sharing arrangement.

Common evaluation rules:

• Profit target: A fixed dollar amount you must reach (e.g., 6% of account size).
• Maximum drawdown: The most you can lose before failing (e.g., $2,500 on a $50K account).
• Trailing vs. static drawdown: Trailing drawdown moves up with your equity highs; static drawdown stays fixed from the starting balance.
• Daily loss limit: Some firms cap how much you can lose in a single day.
• Minimum trading days: Prevents traders from passing on a single lucky trade.

After passing:

Once funded, the dynamics change. There is no longer a profit target — the goal is to trade consistently, protect the drawdown, and withdraw profits regularly. Traders who keep trading a funded account the way they traded the evaluation tend to lose it, because the evaluation rewarded hitting a target and the funded account rewards staying inside the drawdown.

Scaling with multiple evaluations:

Experienced traders pass multiple evaluations and use copy trading to mirror their strategy across all funded accounts simultaneously, multiplying their payout potential without additional trading decisions.