Evaluation Phases
Evaluation challenges are structured in phases, each with its own profit target and rules. TestMax simulates the full progression from your initial evaluation through to the performance phase. This page walks through what happens at each stage and what changes between them.
Phase overview
A challenge runs one or two evaluation phases before the performance phase:
| Phase | Name | Goal | Typical duration |
|---|---|---|---|
| Phase 1 | Evaluation | Meet the larger profit target while respecting all rules | 5-30+ trading days |
| Phase 2 | Verification | Meet a smaller profit target, proving consistency | 5-30+ trading days |
| Performance | Performance phase | No profit target; trade under the same loss rules and request simulated withdrawals | Ongoing |
Phase 1: Evaluation
Phase 1 is the initial evaluation — the most demanding phase with the highest profit target. This is where the majority of traders fail.
What you need to do
- Reach the profit target — For the $50K preset, this is $3,000 in net profit
- Trade the minimum number of days — 2 distinct trading days on the built-in futures presets with a lock, 3–4 on the 2-step forex presets; some presets have no minimum, and custom challenges use whatever you set
- Stay within the trailing drawdown — Your account equity must never touch the drawdown floor
- Respect the daily loss limit — No single day’s losses can exceed the daily cap
- Follow consistency rules — Your best day must stay at or below a configured percentage of the profit target (if enabled); exceeding it raises the target you must reach rather than failing the account
- Trade within allowed hours — No trades outside the permitted session window
- No overnight positions — Close all positions before the session ends (if the rule is enabled)
What happens when you pass
When you meet the profit target with the minimum trading days fulfilled and no rule violations, Phase 1 is complete. On a 2-Step challenge (the 2-step forex presets, or any custom challenge set to 2-Step) TestMax advances you to Phase 2: your account balance carries over, the new (lower) profit target takes effect measured from your Phase 2 starting balance, and the trading-days counter resets. On a single-phase challenge — every built-in futures preset — there is no Phase 2: the EOD-trail-with-lock presets move straight into the performance phase, and the other futures presets complete the challenge.
What happens when you fail
If you violate the trailing drawdown or the daily loss limit, the challenge fails and the simulation ends. Any positions still open are automatically closed at the last price and pending orders are cancelled, so your final balance and analytics include the loss that ended the challenge. You can immediately start a new challenge.
Phase 2: Verification
Phase 2 tests whether you can trade consistently with a lighter profit requirement. The rules are the same as Phase 1, but the bar for profit is lower.
What changes from Phase 1
| Parameter | Phase 1 | Phase 2 |
|---|---|---|
| Profit target | Higher (e.g., $3,000) | Lower (e.g., $2,000) |
| Max trailing drawdown | Same | Same |
| Daily loss limit | Same | Same |
| Minimum trading days | Same | Same |
| Consistency rules | Same | Same |
| Trading hours | Same | Same |
The key difference is psychological. In Phase 2, you need less profit but you are under more pressure — you have already passed Phase 1 and do not want to lose that progress. Many traders become more cautious in Phase 2, which can paradoxically lead to worse performance.
What happens when you pass
Meeting the Phase 2 profit target with all rules satisfied advances you to the performance phase, and the simulation continues with performance-phase rules.
Performance phase
No profit target — you keep trading under the drawdown and daily loss rules and can request simulated withdrawals.
What changes from Phase 2
| Parameter | Phase 2 | Performance |
|---|---|---|
| Profit target | $2,000 (example) | None — trade for profit |
| Max trailing drawdown | Same | Same |
| Daily loss limit | Same | Same |
| Consistency rules | Same | May be relaxed |
| Simulated withdrawals | No | Yes |
Why practice the performance phase?
Many traders focus entirely on passing the evaluation and never practice what comes next. The phase after the pass has no target to chase, the same strict drawdown rules, and a different psychological environment.
Practicing the performance phase in TestMax helps you:
- Develop a sustainable daily routine — You need to generate consistent profit without swinging for the fences
- Practice disciplined risk management — The drawdown is still trailing, and violating it means failing the phase
- Build confidence in your approach — Seeing profitable performance-phase results over weeks of simulation builds real conviction
The full progression in TestMax
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Configure your challenge
Set your account size, drawdown type, profit targets, and rules. Select a preset or customize everything.
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Trade Phase 1
Replay historical sessions and trade with real-time rule enforcement. Your progress dashboard shows profit vs target, drawdown remaining, days traded, and rule status.
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Pass Phase 1
Hit the profit target with minimum days met and no violations. TestMax shows a Phase 1 completion summary. On a 2-Step challenge it sets up Phase 2; a single-phase challenge skips to step 6 (or completes, if the preset has no performance phase).
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Trade Phase 2 (2-Step challenges)
Same rules, lower profit target measured from your Phase 2 starting balance. Trade until you meet the new target.
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Pass Phase 2 (2-Step challenges)
Phase 2 completion unlocks the performance phase. TestMax shows a completion summary with your combined Phase 1 + Phase 2 statistics.
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Trade the performance phase
Continue trading with no profit target. Track your daily and cumulative P&L while maintaining drawdown discipline. This is where you practice the long game.
Tracking your progress
Throughout all phases, the challenge dashboard displays:
- Current phase — Which phase you are in (Phase 1, Phase 2, or Performance)
- Net P&L — Your cumulative profit or loss for the current phase
- Profit target progress — A visual bar showing how close you are to the target
- Drawdown remaining — How much room you have before hitting the drawdown floor
- Daily P&L — Today’s realized and unrealized P&L vs the daily loss limit
- Days traded — How many qualifying trading days you have completed vs the minimum
- Consistency check — Whether your profit distribution passes the consistency rule
- Rule violations — Any active or historical rule violations
Common questions
Can I skip Phase 2?
Yes. The built-in futures presets are single-phase: on the EOD-trail-with-lock presets, passing Phase 1 moves you into the performance phase; on the other futures presets the challenge completes at that point. Switch the evaluation structure to 2-Step to add a verification phase; the forex presets marked 2-step already use one.
What if I barely pass Phase 1?
Passing is passing. But if your Phase 1 result was very close to the drawdown floor, it suggests your risk management needs work. Consider practicing Phase 1 again to build more cushion before moving on.
Does my Phase 1 P&L carry over to Phase 2?
Your account balance carries over, but it does not give you a head start: the Phase 2 profit target is measured from the balance you enter Phase 2 with, not from the original account size. The minimum trading days counter also resets — each phase must earn its target on its own.
How long can I take?
By default there is no time limit — you can take as many trading days as you need. If you want a time limit (e.g., 30 calendar days for Phase 1), you can configure a maximum number of days per phase; the limit is measured in simulation days, and exceeding it fails the challenge.