How a prop firm evaluation works step by step

How does an evaluation work?

When you buy an evaluation account from a prop firm, you are not buying a real account. You are paying for the opportunity to prove that you can trade profitably and with discipline.

The process has 3 distinct phases, each with its own rules:

Phase 1: The evaluation

Your goal is to reach the profit target without violating drawdown rules. It sounds simple, but this is where most traders fail.

Let's see what the progress of a typical evaluation looks like. Notice how the profit target and consumed drawdown advance at the same time:

Evaluation keys:

• The profit target is usually between 5% and 8% of account size
• You must respect the maximum drawdown at all times
• Some firms require a minimum number of trading days (1-10 days)
• There is no time limit to complete it (at most firms)

Phase 2: Funded account

Once you pass the evaluation, you receive a funded account. The rules change:

• No more profit target — you trade without pressure to reach an amount
• Maximum drawdown still applies (and may change type)
• Some firms apply consistency rules (your best day can't exceed X% of total)
• Your profit split is usually 80-100%

Phase 3: Payout

When you want to withdraw profits:

• You must meet the minimum period (usually 2 weeks from activation)
• Minimum payout is usually $100-$200
• Most common methods are wire transfer and crypto
• The process takes 3-5 business days

What happens if you fail?

If you violate drawdown rules during the evaluation, you lose the account. Most firms offer resets or discounts to retry. Some like Apex include automatic resets in the price.