In short. An evaluation is the paid test a prop firm runs before funding a trader: reach a profit target without breaching the maximum drawdown, the daily loss limit or the trading rules, in one, two or three phases. Pass it and the firm opens a funded account; breach a rule and the account is closed, with a reset fee to try again.
The target is usually 6 to 10 % of the nominal size, the maximum drawdown 2 to 5 %. The ratio between the two decides how hard the test is: a $3,000 target with a $2,000 trailing drawdown means one bad week ends the attempt. Some firms add a minimum number of trading days, a consistency rule or a cap on the best day.
Monthly evaluations cost more the longer you take: two months at $150 is $300 plus any reset. One-time evaluations cost the same whether you pass in a week or a quarter. The evaluation-cost calculator on this site adds months, resets and activation for every account of a given size.
The evaluation is passed on the rules, not on the entries. Size from the drawdown, stop the day well before the daily loss limit, and know the flat-before-close and news rules before the first trade.
Questions traders ask
What is Evaluation?
An evaluation is the paid test a prop firm runs before funding a trader: reach a profit target without breaching the maximum drawdown, the daily loss limit or the trading rules, in one, two or three phases. Pass it and the firm opens a funded account; breach a rule and the account is closed, with a reset fee to try again.
How long does a prop firm evaluation take?
As long as it takes to hit the target without breaking a rule. Many firms have no maximum duration on monthly plans; some set a minimum of trading days. A one-step evaluation at a reasonable size is typically passed in two to six weeks by a trader who sizes correctly.