What Is an Evaluation Account?
An Evaluation Account functions like a real trading account but operates in a simulated environment. It allows you to showcase your trading strategies and performance without risking actual funds. The account mirrors live market conditions, giving you the opportunity to demonstrate how you’d handle real-world trading scenarios.
Key Features:
Access to live market data for realistic trading experiences.
The same tools and platforms used in funded accounts.
A safe way to refine your skills and gain confidence as a trader.
The Goal: Qualify for a Funded Account
The primary objective of an Evaluation Account is to pass the evaluation by meeting specific performance criteria. Once you succeed, you’re eligible for a Performance Account where you can trade with real payouts.
What’s Required to Pass?
Profit Targets:
You need to achieve a certain percentage gain to pass:
Stocks: 6% profit target.
Options: 10% profit target.
Example: For a $50,000 Stocks Account, you’ll need to grow your account to $53,000.
Drawdown Management:
Max Drawdown: The maximum amount you’re allowed to lose relative to your starting balance.
Stocks: 3% (e.g., $1,500 for a $50,000 account).
Options: 5% (e.g., $2,500 for a $50,000 account).
Trailing Drawdown: Adjusts dynamically with your account’s equity peak, ensuring you maintain consistent growth.
Consistency Rule:
No single trade can contribute more than 30% of your total profits. This rule ensures your trading strategy is balanced and not overly reliant on high-risk trades.
Why Use an Evaluation Account?
Low-Risk Environment: Learn and refine your trading strategy without risking personal capital.
Prove Your Skills: Showcase your ability to manage risk, follow rules, and deliver consistent performance.
Earn Your Funding: Pass the evaluation to transition to a Performance Account, where you can trade for real payouts.
Key Benefits of an Evaluation Account
Real Market Conditions: Trade with live market data and realistic execution to build practical experience.
No Time Pressure: Start when you’re ready—there are no deadlines to complete the evaluation.
Unlimited Resets: If you fail, you can restart anytime by purchasing a reset or using a reset credit.
By following the Evaluation Account rules and achieving the required profit targets, you’ll prove your ability to trade successfully and unlock the opportunity to manage a funded Performance Account.