Definition
What is Evaluation (challenge phase)?
The evaluation, or challenge phase, is a simulated trading test with a profit target and loss limits that a trader must pass to receive a funded account.
Prop firms do not hand out accounts on trust. You buy an evaluation, trade a simulated account under published rules and, if you meet every objective, you move on to the next phase or to a funded account.
A typical phase combines a profit target, a daily loss limit, a maximum loss limit, a minimum number of trading days and sometimes a time limit or consistency rule. Breaking a hard limit ends the attempt; meeting all objectives passes it.
Programmes differ in the number of phases. One-phase evaluations are faster but often have tighter limits; two- or three-phase evaluations split the target into smaller steps.
The best preparation is a free trial under the same rules, so you know your daily risk and your average time to target before paying.
Example
Example: a $10,000 evaluation with a 10% target, 4% daily loss and 8% maximum loss is passed by closing at $11,000 or above without equity ever falling $400 below the daily reference or $800 below the equity peak.
At a prop firm
Axora Funded offers 1-, 2- and 3-phase evaluations (1-Step, Spark, Pass, 2-Step, Ascent, Elite and futures) plus Bolt, which skips the evaluation. When all objectives are met, the next phase or the funded account is issued automatically.
Frequently asked questions
What happens if I fail the evaluation?
The account is closed and the fee is not refunded. You can buy a new evaluation and start again.
Can I practise the evaluation for free?
Yes. The Axora Funded free trial is a $100,000 account for 14 days with the 2-Step phase 1 rules.