Profit Target To pass the evaluation you must achieve a virtual profit target of 10%, however, the advantage is that there are no further steps or phases so you are immediately eligible to receive a simulated GFN Funded Account of up to $200k. Max Drawdown The Max Drawdown is the maximum your account is allowed to drawdown at any time before breaching your account. You can think of it as the “total account stop-loss”. The initial Max Drawdown is set at 8% as standard from the starting balance of your account. (You can also purchase a completely optional 10% Max Drawdown at checkout.) An 8% or 10% Max Drawdown (combined with the 10% virtual profit target) on a 1 Step evaluation are both unbeatable in the trader evaluation services industry. Whilst the Max Drawdown on the evaluation is a relative drawdown, the drawdown only follows you up until you reach a virtual profit target of 8% after which we completely remove the relative drawdown and allow you to draw back down to your initial starting balance before breaching your account. This means after reaching a virtual profit target of 8% the Maximum Drawdown can grow to be much greater than 8%. For example, if you have a $100,000 account, you can go down to $92,000 before breaching the account. Let’s say you are a profitable trader and make $4,000 in your account. Your High-Water Mark is now $104,000 (balance, so just closed trades). Your Max Drawdown limit will be $96,000. Next, you make an additional $4,000 in your account. So, your new High-Water Mark is $108,000. Here is where the Max Drawdown locks in, so as your High-Water Mark rises your Max Drawdown limit will stay at $100,000, which means your Max Drawdown increases beyond 8%. Let’s say you have grown your account to $120,000. Your effective Max Drawdown level is now 20% (2.5x greater). Daily Loss Limit The Daily Loss Limit is the maximum your account is allowed to drawdown on any given day before breaching your account. You can think of it as the “daily account stop-loss”. The initial level is set at 5% from the starting balance of your account for all our evaluation programs. It means that at any moment during the trading day the decrease in open or closed trades should not exceed this predetermined limit. The Daily Loss Limit on the account is re-calculated at the end of every trading day based on 5% of the account’s balance or equity, whichever is greater when the trading day changes at 5pm EST. The good news is, because we base the Daily Loss Limit on a %, and not a fixed $ amount, the more money you make in your account the wider your daily stop-loss is! For example, if you start with a $100,000 balance and grow that account to $120,000 (balance or equity), your daily stop-loss level is now $6,000 vs. $5,000. The Daily Loss Limit and Max Drawdown rules serve as important risk management measures, ensuring that traders control their equity fluctuations within a specified range. By adhering to these rules, traders can protect their simulated capital and maintain a disciplined approach to managing their account!