Trading glossary
Evaluation
An evaluation is the challenge a prop firm sets before funding a trader, usually requiring a profit target to be reached while respecting maximum drawdown and daily loss limits within a time window. Passing the evaluation demonstrates both profitability and risk control. Because the rules are numeric, they can be tracked precisely, and a journal is the natural tool for that. Traders Vault treats evaluations as accounts with their own starting balance and limits, so you can monitor progress toward the profit target and against the drawdown cap in real time.
What is Evaluation in trading?
An evaluation is the challenge a prop firm sets before funding a trader, usually requiring a profit target to be reached while respecting maximum drawdown and daily loss limits within a time window. Passing the evaluation demonstrates both profitability and risk control. Because the rules are numeric, they can be tracked precisely, and a journal is the natural tool for that. Traders Vault treats evaluations as accounts with their own starting balance and limits, so you can monitor progress toward the profit target and against the drawdown cap in real time.