The evaluation phase is the first stage of a funded trader program designed to verify that a trader can hit a defined profit target while staying within risk limits over a set period. Passing it advances the trader to the next phase or directly to a funded account, depending on the program structure.
Most programs use either a one-phase or two-phase structure. In a two-phase model, the evaluation phase (Phase 1) typically carries a higher profit target and stricter conditions; the verification phase (Phase 2) uses a lower target to confirm the performance was not a single outlier session.
What the evaluation phase tests
The evaluation phase is not a test of profitability alone. It tests whether a trader can be profitable within a defined risk framework — simultaneously hitting the profit target while never breaching the daily loss limit or maximum drawdown. Both conditions must be met; profitability that requires a drawdown breach is not a pass.
Additional conditions may apply: a minimum trading days requirement prevents passing on a single lucky session, and a consistency rule (where present) prevents a single large trade from accounting for the entire target.
Rules are locked at evaluation start
A critical protection for traders in well-structured programs: the rules governing an evaluation phase are versioned and locked at the point of purchase. If a program changes its rules after a trader has started, those changes apply to new evaluations only — active evaluations continue under the rules they started with. Confirm this is the case in writing before purchasing; programs that do not make this commitment explicitly have answered the question already.
What disqualifies an evaluation phase
- Breaching the daily loss limit on any single day — this ends the evaluation regardless of overall P&L.
- Breaching the maximum drawdown — same result.
- Violating a prohibited trading practice (news trading restriction, overnight holding ban, or similar, where applicable).
- Failing to meet the minimum trading days requirement even if the profit target is hit early.
For the full rule framework, see profit target, daily loss limit, trailing drawdown, minimum trading days, and consistency rule. FundedProp’s evaluation phase rules — including the exact profit target, limits, and any additional conditions — publish in the rulebook before any evaluation opens for purchase.
FundedProp provides simulated trading evaluations. All accounts are demo accounts; no real capital is traded by participants. This is not investment advice.