# Evaluation Rules
These rules define what you need to pass each phase and what will cause a challenge failure.\
Your account is evaluated using both balance and equity. If either one breaches a limit, the challenge ends automatically.
* **Balance** is the value of your account after all closed trades.\
It does not change while a trade is still open.
* **Equity** is the real-time value of your account.\
It includes both your balance and the profit or loss from open positions.
#### **Profit Target (Phase 1: 10% - Phase 2: 5%)**
The profit target is the goal you need to achieve to pass each phase of the challenge.
* In Phase 1, your profit target is 10%.
* In Phase 2, your profit target is 5%.
You will pass the challenge and be eligible for a funded account once you reach the profit target in each phase without violating any of our other rules.
{% hint style="info" %}
When your equity reaches the profit target, all open positions are automatically closed by the system.
You are then moved to the next phase immediately.
This happens automatically and does not require any manual action.
{% endhint %}
#### **Max Drawdown (9% - static)**
The max drawdown is the total amount your account's balance or equity can drop from its starting value.
* The maximum loss limit for your account is 9%.
{% hint style="info" %} **Example:**
Your account will be automatically closed if your balance or equity drops below $91,000 on a $100,000 account.
{% endhint %}
#### **Max Daily Drawdown (5%)**
The maximum daily drawdown limit is not fixed to the initial account balance. It is recalculated each day at 00:00 UTC based on your account’s equity at that time. The limit does not move intraday and only updates at the next daily reset.
{% hint style="info" %} **Example: Max Daily Drawdown Calculation**
You have a $100,000 account with a 5% daily drawdown limit.
**Day 1**
* Your daily drawdown limit is 5% of $100,000 = $5,000
* Your equity or balance must not fall below $95,000 during the day.
\
During the day, you make profits and at 00:00 UTC,
* Equity is $103,000
* The system takes $103,000 as the new reference value.
\ **Day 2**
* Your daily drawdown limit becomes 5% of $103,000 = $5,150.
* Your equity or balance must not fall below $97,850 during Day 2.
{% endhint %}
#### **Min Profitable Days (2 Days / 3 Days)**
The minimum profitable days rule has been fixed. Traders must achieve at least 0.5% profit on 2 days in Phase 1 and 3 days in Phase 2.
* The 0.5% target is calculated based on the initial account balance. (e.g., for a $10,000 account, the threshold is always $50)
* Both realized (closed trades) and unrealized PnL (open positions) are included in the day’s calculation.
* Realized PnL is counted on the day the trade is closed, not when it is opened.
A day is considered “profitable” only if your total PnL for that day reaches at least +0.5% of the initial balance at any point during that day.
However:
* Unrealized PnL (open positions) only counts for the current day
* If profits are not realized, they do not carry over to previous days
* When the day changes, unrealized PnL resets in terms of daily tracking and is considered for the new day instead
{% hint style="info" %} **Example 1: Unrealized profit not closed**
* Initial balance: $10,000 → threshold: $50
* You need 3 profitable days, currently have 1
* Today your open position reaches +$60 unrealized PnL
* You do not close the position today
\ Result:\
This day will NOT count as a profitable day in later evaluation, since the profit was not realized within the day.
{% endhint %}
{% hint style="info" %} **Example 2: Reaching threshold with an open position**
* Initial balance: $10,000 → threshold: $50
* You need 3 profitable days, currently have 2
* Your position reaches +$50 unrealized PnL during the day
Result:\
This day counts as a profitable day immediately.\
To make the process seamless, the system automatically closes your position once the required conditions are met and moves you directly to the next phase. This removes the need for manual action and ensures you don’t lose qualification due to market fluctuations.
{% endhint %}
{% hint style="info" %} **Example 3: Overnight trades**
* You open a trade yesterday and close it today
Result:\
The PnL is counted for today, since that is when it is realized.
{% endhint %}
#### **Phase Duration (30 Days)**
Each evaluation phase must be completed within 30 days. This rule applies only to the challenge phases. There is no time limit once the account becomes funded.
#### **No Additional Rules**
Multiple accounts, copy trading not allowed. Other than this,\
\
Only the rules listed on this page apply.
There are:
* No consistency rules
* No maximum risk per trade rules
* No hidden or discretionary conditions
You can trade freely within the defined profit targets and drawdown limits.
If a rule is not written here, it is **not enforced**.
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