Some evaluators immediately terminate an evaluation if any of their rules are broken. Likewise in their “funded” accounts, breaking a rule results in the funded account being closed. Generally in such cases, any profits that the funded trader has generated will be paid to them, but the effect of the rule break is a terminal event for the account.
Others have varying degrees of latitude as regards rule breaks, for example:
- breaching the daily loss limit will liquidate the current position and lock trading for the rest of the day, but the evaluation account will remain intact
- exceeding the position size limits will not result in an evaluation termination (potentially if the trader realizes their mistake in a very short period of time, e.g. 10 seconds) and takes steps to reduce the position
⚠
It’s crucial to understand exactly the rule set in force for the evaluation that you’re working on so that you keep your trading within the rules. All the more so if you take tests from different evaluators!
Most evaluators offer the facility to reset an evaluation account for a fee of around $100 if your account has broken a rule and invalidated the evaluation. You can also reset the evaluation if you feel that you’ve got to a position that is making it unlikely or difficult to pass the evaluation. The exception are fixed time “Express” evaluations.
📝
As evaluations are monthly subscriptions, it’s important to consider whether paying for a reset is a good use of funds. If you’re paying to reset an account that’s going to rebill its monthly fees sooner than the minimum trading days required, it may be more cost effective to cancel the current evaluation subscription and start a new one.
