An evaluation is a rules-based assessment
A prop-firm evaluation tests whether a trader can meet defined objectives without breaking the account rules. Reaching the profit target is only one part of that assessment. A trader can be profitable and still fail by exceeding a loss limit or using a prohibited practice.
Do not assume that “funded” describes a live brokerage account. Some programs use simulated accounts and pay rewards under a separate agreement. Read the account agreement to understand the arrangement, counterparty and payment conditions.
Separate daily loss from maximum loss
A daily loss limit caps losses within the firm’s defined trading day. A maximum loss limit governs the account more broadly. The calculation may include floating profit or loss, commissions and swaps, and the daily reset may follow a time zone different from yours.
FTMO publishes objectives for its different programs, while Topstep publishes parameters for its Trading Combine. These are useful examples, not interchangeable rules. Check the exact program and account size you intend to buy.
Build your own rule sheet
Before trading, write down the profit target, daily and total loss limits, reset time, minimum trading requirements and any consistency objective. Note whether the drawdown is static, trailing intraday or evaluated at the end of the day.
Check news restrictions, overnight and weekend positions, copying rules and prohibited strategies. A platform accepting an order does not mean that order complies with your agreement.
Plan risk around the remaining buffer
The displayed account size is not the amount you can lose. Work from the distance to the relevant loss threshold, allowing room for slippage and costs. Set your own stopping point before the firm’s threshold rather than relying on an automatic breach.
There is no guaranteed method for passing an evaluation. Smaller position sizes may reduce the speed of both gains and losses; they do not eliminate market risk. Treat the fee as money you could lose.