The action of restarting an evaluation process after failing or breaching the trading rules.
Resets give traders a second chance to pass an evaluation without purchasing a new one. However, excessive resets can indicate a lack of discipline or a flawed trading strategy.
A trader is down $4,000 on a $50,000 evaluation account, exceeding the drawdown limit. They pay for a reset, restoring their balance to $50,000 and restarting the evaluation.
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.