Purpose
The primary goal of a Performance Account is to empower skilled traders to grow their profits responsibly while maintaining discipline.
Key objectives of a Performance Account:
Earn Real Rewards: Transition from practice to trading with payouts, while still operating within predefined risk limits.
Encourage Consistency: Uphold rules like the Consistency Rule to ensure disciplined and sustainable trading.
Promote Responsible Risk Management: Max drawdown and trailing drawdown rules remain in place to protect the trader and the account capital.
Differences from Evaluation Accounts
While many aspects of trading remain the same, there are several key differences between Evaluation and Performance Accounts:
No Profit Targets After Passing:
Unlike Evaluation Accounts, where you must achieve a specific profit target to qualify, Performance Accounts do not require ongoing profit targets.
Your primary focus shifts to consistent growth and risk management.
Trailing Drawdown Becomes Fixed:
During the evaluation, the trailing drawdown adjusts dynamically as your account balance increases. In a Performance Account, once you reach the profit buffer, the trailing drawdown becomes fixed.
Example: For a $50,000 account:
Profit buffer is $2,500.
After reaching $52,500, the drawdown limit locks at $50,375, no longer trailing upward.
Payout Opportunities:
Unlike Evaluation Accounts, where profits are not withdrawable, Performance Accounts allow you to request payouts based on your earnings.
By transitioning to a Performance Account, you move beyond proving your skills and into a real-world trading environment where discipline, consistency, and risk management become the keys to success.
The ultimate goal? Building a sustainable trading career with real financial rewards.