Evaluation Phases
Prop firm evaluations are structured in phases, each with its own profit target and rules. TestMax simulates the full progression from your initial evaluation through to a funded account. This page walks through what happens at each stage and what changes between them.
Phase overview
Most prop firms (TopStep, Apex, Earn2Trade) follow a multi-phase structure:
| Phase | Name | Goal | Typical duration |
|---|---|---|---|
| Phase 1 | Combine / Evaluation | Meet the larger profit target while respecting all rules | 5-30+ trading days |
| Phase 2 | Funded Simulation | Meet a smaller profit target, proving consistency | 5-30+ trading days |
| Funded | Live Funded | Trade with real capital, request payouts | Ongoing |
Phase 1: The Combine
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 a $50K TopStep account, this is typically $3,000 in net profit
- Trade the minimum number of days — Usually 5 distinct trading days
- 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 — No single day can account for more than a configured percentage of your total profit (if enabled)
- 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, TestMax automatically advances you to Phase 2. Your account balance resets to the starting amount, and the new (lower) profit target takes effect.
What happens when you fail
If you violate the trailing drawdown or accumulate too many daily loss limit violations, the simulation ends. In TestMax, you can immediately start a new simulation for free. In a real evaluation, you would need to pay for a reset or a new evaluation.
Phase 2: Funded Simulation
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 Funded stage. In a real prop firm, this means you would receive a funded trading account with real capital. In TestMax, the simulation continues with Funded-stage rules.
Funded: Simulated Live Trading
The Funded stage in TestMax simulates what trading a funded account feels like. There is no profit target — you trade to generate profit while continuing to respect the drawdown and daily loss rules.
What changes from Phase 2
| Parameter | Phase 2 | Funded |
|---|---|---|
| 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 |
| Payout simulation | No | Yes |
Why simulate the Funded stage?
Many traders focus entirely on passing the evaluation and never practice what comes next. The Funded stage is actually where most traders blow up in real life — the pressure of trading real capital, combined with the same strict drawdown rules, creates a different psychological environment.
Practicing the Funded stage 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 losing your funded account
- Build confidence in your approach — Seeing profitable Funded-stage results over weeks of simulation builds real conviction
The full progression in TestMax
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Configure your evaluation
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 and automatically sets up Phase 2.
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Trade Phase 2
Same rules, lower profit target. Your account resets to the starting balance. Trade until you meet the new target.
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Pass Phase 2
Phase 2 completion unlocks the Funded stage. TestMax shows a completion summary with your combined Phase 1 + Phase 2 statistics.
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Trade Funded
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 prop firm practice dashboard displays:
- Current phase — Which phase you are in (Phase 1, Phase 2, or Funded)
- 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?
Not in the default configuration, as most prop firms require both phases. However, you can configure a single-phase evaluation in TestMax if your target firm only has one phase.
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 attempting it for real.
Does my Phase 1 P&L carry over to Phase 2?
No. Each phase starts with a fresh balance at the configured starting amount. This matches how most prop firms operate.
How long can I take?
In TestMax, there is no time limit on any phase. You can take as many trading days as you need. In a real prop firm evaluation, some firms impose time limits (e.g., 30 calendar days for Phase 1). Check your target firm’s specific rules.