Challenge Phase
Definition
The challenge phase is the first stage of most prop firm evaluations. Traders must hit a profit target (typically 8-10%) within a time limit while respecting drawdown and daily loss rules.
The challenge phase is designed to be the hardest part of the evaluation process. FTMO's Challenge requires a 10% profit target within 30 calendar days with a 10% max drawdown and 5% daily loss limit. The pressure of a time limit combined with strict risk rules tests both trading skill and psychological discipline.
Key strategies for passing the challenge phase: Start conservatively in the first week to build a small cushion. Don't try to hit the target in the first few days — this leads to over-leveraging. Calculate your daily target (e.g., 0.33% per day for a 10% target over 30 days) and plan accordingly.
Many traders fail the challenge phase not because they can't trade profitably, but because they violate risk rules while trying to hit the target too quickly. PropJournal's challenge tracker shows your pace toward the profit target, remaining time, and risk budget, helping you make rational decisions instead of emotional ones.
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