Evaluation Models, Explained

Funded trader programs use evaluations to filter applicants before allocating capital. The structure of these evaluations varies widely and directly affects expected value for the trader.\n\nTwo-step challenges (the original FTMO model) require a profit target across two phases, with drawdown and time limits. They have high failure rates by design — fees from failed challenges are a primary revenue source.\n\nOne-step models compress the challenge into a single phase. Instant funding skips the evaluation entirely in exchange for higher fees, lower starting capital, or stricter rules.\n\nThe trader's job is to read the fine print: scaling plans, profit splits, payout cadence, and consistency rules can swing realized P&L by 50% or more.