Most failed challenges aren't failed by bad trades. They're failed by misunderstood rules.
$10,000Target10% of $100K
$5,000Daily loss limit5% of $100K
$90,000Fail level10% static max loss
$500Your risk per trade0.5% = 20 losses of room
Challenge formats
- 2-step: Phase 1 (8–10% target) then Phase 2 (about 5%).
- 1-step: one phase, usually tighter drawdown.
- 3-step: smaller targets per step, cheaper entry.
- Instant funding: no evaluation, higher price, stricter limits.
Daily loss: balance or equity?
Firms measure the daily limit from the day's starting balance or equity, resetting at a fixed server time. It usually counts floating losses: dip past it for one second and the account fails.
Static vs trailing drawdown
The floor never moves
The floor climbs with your profits
Other rules that catch people
- Minimum trading days.
- Consistency rules: no single day can be too large a share of total profit.
- News trading and weekend holding restrictions.
- Banned strategies: latency arbitrage, tick scalping, copying trades across accounts.
Wick says
"I didn't know floating losses counted." That sentence has ended more challenges than any bad trade.
Key takeaways
- Know if the daily limit uses balance or equity, and when it resets.
- Static drawdown is friendlier than trailing.
- Read consistency, news and strategy rules first.