How Do Prop Firm Evaluations Work?
A prop firm evaluation is a paid trading test you must pass before a firm funds you with its own capital. Here is exactly how the process works, step by step, and the rules that decide whether you pass.
A prop firm evaluation — also called a challenge or a combine — is a demo or sim-funded trading account you pay to access. Hit a profit target without breaking the firm's risk rules, and it offers you a funded account; break a rule first, and the evaluation ends. Nearly every prop firm we track, futures and CFD alike, uses some version of this model.
The evaluation, step by step
- Pick an account size and pay the evaluation fee — a one-time fee at most CFD firms, a monthly subscription at most futures firms.
- Trade on a demo or sim-funded account, using real market data under the firm's specific rules.
- Hit the profit target — commonly 8-10% of account size for CFD firms, a smaller fixed dollar amount for futures firms — within those rules.
- Stay under the maximum drawdown and any daily loss limit at every point, not just at the close of the day.
- Meet the minimum trading days requirement, where the firm sets one.
- Pass, and the firm moves you to a funded account — real capital at most futures firms, a funded demo or live-mirrored account at most CFD firms.
The five rules that actually decide whether you pass
Profit target: the percentage or dollar gain you must reach. FTMO asks for 10% in one phase on its 1-Step Challenge, or 10% then 5% across two phases on its 2-Step Standard; Topstep asks for a fixed $3,000 on a 50K futures account, about 6%.
Maximum drawdown: the largest drop your account can take before you fail. It can be static (a fixed floor), trailing end-of-day (recalculated once daily), or trailing intraday (recalculated tick by tick, the strictest version) — see our EOD vs intraday drawdown guide for the full breakdown.
Daily loss limit: a separate, same-day cap some firms add on top of the overall drawdown. Topstep's daily loss limit only pauses trading for the rest of the day rather than failing the account outright — a nuance that trips up traders who assume every limit ends the evaluation instantly.
Consistency rule: a cap on how much of your total profit a single day can represent, so one lucky session cannot pass the evaluation alone. FTMO's 1-Step Challenge uses a 50% Best Day Rule; Topstep's Combine caps the best day at 50% of the profit target during the evaluation.
Minimum trading days: a floor on how many separate days you must trade. FTMO's 2-Step Standard requires 4; Topstep requires 2; FTMO's 1-Step has no formal minimum, though the Best Day Rule makes roughly three days necessary in practice.
One-step vs two-step evaluations
A one-step evaluation has a single profit target and moves you to a funded account as soon as you clear it — faster, but usually paired with a tighter daily loss limit and a consistency rule to compensate. A two-step evaluation splits the same overall difficulty across two phases with smaller individual targets, which is why most two-step evaluations skip the consistency rule altogether. Most futures firms, including Topstep, now sell one-step combines; two-step remains more common among CFD firms.
| FTMO 1-Step (50K) | FTMO 2-Step Standard (50K) | Topstep Combine (50K futures) | |
|---|---|---|---|
| Profit target | 10% (€5,000), one phase | 10% + 5% (€5,000 then €2,500) | $3,000 (~6%) |
| Drawdown type | 10% trailing EOD | 10% static | EOD trailing, $2,000 |
| Daily limit | 3% (€1,500) | 5% (€2,500) | $1,000 (pauses, does not fail) |
| Consistency rule | 50% Best Day Rule | None stated | Best day ≤50% of profit target |
| Min trading days | None formal (~3 implied) | 4 | 2 |
| Split after passing | 90/10 immediately | 80/20, rising to 90/10 | 90/10 immediately (since Jan 2026) |
After you pass: what changes
Futures firms typically move you straight to a funded account with the same profit split you evaluated under. CFD firms often add funded-only restrictions that were not active during the evaluation — FTMO's Standard account type, for instance, bans weekend position holding and restricts trading within ±2 minutes of high-impact news once you are funded, neither of which applies during the Challenge itself. Read how prop firm payouts actually work for what happens between passing and money in your account.
How long does a prop firm evaluation take?
Most evaluations have no hard time limit, so in theory a single strong session could pass one — but minimum trading day rules mean it realistically takes anywhere from several days to a few weeks.
Do I trade real money during the evaluation?
No. Evaluations run on demo or simulated accounts. Real capital, or a funded live-mirrored account, only starts once you pass.
What is the most common reason evaluations fail?
Breaching the maximum drawdown rule — usually because traders misjudge whether it trails intraday or only at end-of-day. Our EOD vs intraday drawdown guide covers the difference in plain English.
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