Prop Firm Challenge

Prop Firm Challenge — The evaluation phase where a trader must hit a profit target while respecting drawdown limits to qualify for funded capital.

Full Definition

A prop firm challenge typically requires reaching a 8-10% profit target within 30-60 days, while staying inside a 5% daily drawdown and 10% maximum drawdown.

Related Terms

Maximum Drawdown · Daily Drawdown · Profit Target · Consistency Rule

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