Glossary / Prop firms
Evaluation account
Definition
A simulated account you trade to prove you can follow risk rules.
Why it matters
Passing an evaluation is a risk-management test more than a profit test, which is why tracking distance to the daily loss limit matters more than P&L.
Example
A $50,000 two-phase evaluation might require 8% in phase one and 5% in phase two, with a 5% daily loss limit throughout - three separate numbers to track every session.
How to track it in a journal
TradeStack calculates the core performance numbers — win rate, average win and loss, profit factor, expectancy, drawdown and consistency — automatically from imported trades, so evaluation account stops being something you estimate and becomes something you read.
Related terms
Trailing drawdown
A drawdown limit that moves upward as your account makes new highs.
Daily loss limit
The maximum you can lose in one trading day before the account is breached.
Profit target
The gain required to pass an evaluation phase.
Consistency rule
A requirement that no single day makes up more than a set share of total profit.
Questions that use this term
Keep reading
Trading journal guides
Expectancy, profit factor, drawdown, backtesting and the PDT rule.
Free trading calculators
Position size, risk-reward, expectancy and options profit.
Expectancy calculator
Expected profit per trade from your own numbers.
Broker CSV export guides
Step-by-step exports for Tradovate, NinjaTrader, IBKR and more.
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