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 a fee (typically $100-300 depending on account size).
2. You receive a simulated account (usually $25K-$150K).
3. You must reach a profit target (commonly $2,000-$9,000) without exceeding the maximum drawdown.
4. Some firms require a minimum number of trading days (5-10 days).
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. Many traders who pass evaluations lose their funded accounts within 30 days because they do not adjust their approach.

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.