A requirement ensuring traders generate profits steadily over time rather than relying on a single large winning day.
Many prop firms enforce consistency rules to prevent traders from passing evaluations with just one or two oversized winning trades. Traders must maintain steady gains to qualify for payouts.
A trader makes $8,000 in an evaluation, but $6,000 of it came from one trade. The prop firm enforces a rule that no single day can account for more than 30% of profits, requiring them to demonstrate more even performance.
The number of phases a trader must complete to qualify for a funded account. Each phase typically includes meeting profit targets while adhering to risk rules.
The initial amount of capital allocated to a trading account in an evaluation or funded account.
The specific profit amount a trader must achieve to pass an evaluation or progress to a higher account level.
The maximum amount a trader is allowed to lose in a single trading day. Exceeding this limit typically disqualifies the trader. There are different types of loss limits, so it is important to understand the type that applies to a chosen plan.
The maximum permissible loss from the starting balance or peak balance. Breaching the drawdown limit ends the evaluation or funded account.