A consistency rule is an evaluation requirement designed to cap how much of the total profit can come from a single trading day or single position — for example, no one day may account for more than 40% of the profit target. The stated purpose is to reward repeatable performance over one lucky trade. In…

A breach is a rules event designed to mark the violation of a defined risk limit — most commonly the daily loss limit or maximum drawdown — ending the evaluation or funded period. Programs distinguish hard breaches (immediate, automatic, account-ending — drawdown violations are almost always hard) from soft breaches (rule violations such as prohibited…

A profit split is a payout term designed to define how simulated performance rewards are divided between the funded trader and the platform — an 80/20 split pays the trader 80% of eligible gains in each payout cycle. Headline splits are comparable only alongside their conditions: payout frequency, minimum payout thresholds, scaling-based split increases, and…

A profit target is an evaluation requirement designed to define the percentage gain a trader must reach to pass a phase — for example, 8% on a $100,000 account means closing the phase at or above $108,000. The target interacts with the risk limits to define the real difficulty of an evaluation: an 8% target…

Balance is an account metric designed to show the realised value of an account: deposits and closed-trade results only, excluding any open positions. The balance-vs-equity distinction is the root of many evaluation breaches. Balance-based loss limits only register losses when trades close; equity-based limits register them tick by tick. Always confirm which basis your program…

Equity is an account metric designed to show real-time account value: balance plus or minus the floating profit and loss of all open positions. Equity matters in evaluations because most modern risk limits are equity-based: an open position that goes $3,000 underwater reduces equity by $3,000 immediately, even if the trade later recovers and closes…

A daily loss limit is a risk-limit mechanism designed to cap how much an account may lose within a single trading day, independent of the overall drawdown limit. Exceeding it ends the evaluation or funded period. Three details determine whether a trader breaches it: the measurement basis (closed balance vs floating equity — equity-based limits…

A static drawdown is a risk-limit mechanism designed to fix the maximum allowable loss at a set level below the starting balance, regardless of how high the account climbs. The limit never moves. Example: a $100,000 account with a 10% static drawdown can never fall below $90,000. Static models are simpler to plan around than…

A trailing drawdown is a risk-limit mechanism designed to calculate the maximum allowable loss from the highest value an account has reached, rather than from its starting balance. As the account makes new highs, the loss limit moves up with it; in most implementations it never moves back down. Example: a $100,000 account with a…