What you'll learn
- List what a challenge measures
- Understand pass and fail conditions
- Set realistic expectations about pass rates
The core rules
| Rule | Typical value | What it tests |
|---|---|---|
| Profit target | 8 to 10 percent in phase one, 5 percent in phase two | Whether you can make money |
| Maximum daily loss | 4 to 5 percent of the starting balance | Whether one bad day can end you |
| Maximum overall loss | 8 to 12 percent | Whether you can avoid a deep drawdown |
| Minimum trading days | 0 to 5 | Whether the result came from more than one trade |
| Time limit | None, or 30 to 60 days per phase | Whether you can perform on a schedule |
Passing and failing
You pass when your closed balance reaches the target and every other rule has been met. You fail the instant a loss limit is touched, including on open positions where the firm measures equity, which most do. There is no appeal against the platform's calculation, so knowing exactly how each limit is measured is worth more than any strategy adjustment.
Pass rates
Firms rarely publish pass rates, and those that have suggest most attempts fail, often more than four in five. That is by design. A challenge is priced so that fee income exceeds payouts, and the rules are set to produce that. Treat a first attempt as a paid lesson in the rules rather than a likely payday, and size the fee accordingly.
The fee
Fees scale with account size, from under 100 dollars for a 10,000-dollar account to over 1,000 dollars for 200,000. Discounts are common. Some firms refund the fee with the first payout. A reset, which restarts a failed challenge, is usually cheaper than a new fee.
Key takeaways
- A challenge tests profit against strict loss limits on a simulated account.
- A breach ends it immediately; most measure limits on equity.
- Most attempts fail, by design.
- Fees scale with size and are rarely refunded on failure.
Knowledge check
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This lesson is general education, not advice. Risk disclosure.