{"term":{"slug":"evaluation-phase","term":"Evaluation Phase","definition":"A simulated trading period where aspiring funded traders must demonstrate profitability and risk management within defined rules. Passing the evaluation earns access to a funded account.","extendedExplanation":"Evaluations come in 1-step and 2-step formats. In a 1-step evaluation (TopStep, Apex), you trade one simulated phase and pass directly to a funded account. In a 2-step evaluation (FTMO, FundedNext), Phase 1 has a higher profit target and Phase 2 has a lower one, both with the same drawdown limits.\n\nDuring evaluation, you trade on a demo account with real-time market data. The firm monitors your compliance with drawdown limits, daily loss limits, consistency rules, and other restrictions. A single violation typically results in immediate failure.\n\nThe evaluation fee is paid upfront and most firms refund it after your first funded payout. Some firms (TopStep) use a monthly subscription model instead. Failed evaluations can be retried by purchasing a new challenge or continuing the subscription.","exampleWithNumbers":"FTMO 2-step on $100K: Phase 1 requires $10,000 profit (10%) with no time limit. Phase 2 requires $5,000 profit (5%). Both phases enforce $5,000 daily loss limit and $10,000 max drawdown. Fee is EUR 540 (refunded after first payout). If you fail Phase 1, you restart with a new EUR 540 fee.","category":"evaluation","relatedTerms":["profit-target","challenge-fee","funded-account","consistency-rule","daily-loss-limit"]},"_links":{"self":"https://runvigil.app/api/glossary/evaluation-phase","page":"https://runvigil.app/learn/evaluation-phase","allTerms":"https://runvigil.app/api/glossary","learn":"https://runvigil.app/learn"}}