Prop Firm Evaluation Math
Calculate exactly how many points you need to pass a prop firm evaluation, and mathematically uncover your true prop firm account size via the trailing drawdown limit.
Evaluation Rules
Trading Assumptions
Math Reality Check
The Prop Firm Casino Ratio
The Illusion of the "$50,000" Prop Firm Account
The online day trading space is dominated by proprietary funding firms (like Topstep, Apex Trader Funding, MyFundedFutures, TradeDay, etc.) offering traders massive "$50,000" or "$150,000" accounts for a small monthly fee.
However, the headline account size is an illusion. The only number that matters is the max trailing drawdown. If a $50k account has a $1,500 drawdown and a $3,000 profit target, you do not have a $50,000 account. You have a highly-leveraged $1,500 account where you are required to generate a 200% return on balance without losing 100% of your balance.
Why This Calculator Helps
Most prop firm traders fail (over 90%) because they use the sizing logic of a $50,000 account on a $1,500 true margin balance. This calculator takes your Profit Target and Drawdown Rules and breaks them down mathematically based on the instrument you trade (e.g. NQ, ES, MES).
If the calculator tells you that your $1,500 drawdown means you blow the account after losing just 75 points on the NQ with one contract, you will instantly realize that running 3 contracts with a 30-point stop loss will fail your evaluation in a single bad trade.
Trading Micro vs Mini Contracts
- E-Mini (ES / NQ): High leverage. A standard $50k account requires roughly 150 NQ points or 60 ES points to pass, but a few bad candles will hit your drawdown limit instantly.
- Micros (MES / MNQ): Trading 1/10th the size, you need 10x the points to reach the profit target. While passing takes longer, your odds of survival against intraday volatility are exponentially higher.
Frequently Asked Questions (FAQ)
What is an End of Day (EOD) Drawdown vs Intraday Drawdown?
An EOD trailing drawdown only takes your highest account balance at the close of the trading day. An Intraday or "Live" trailing drawdown ticks up with your highest open profit during a trade. Intraday drawdowns are significantly harder to pass, as giving back open profits on a winning trade can still fail your evaluation.
Why do prop firms require a $3k target for a $1.5k drawdown?
This creates a negative 1:2 risk/reward asymmetry against the trader. They do this because the business model relies heavily on traders blowing evaluations and paying reset fees. You have to be twice as good at making money as losing it just to qualify for a payout.
The tools and calculators provided on The Simple Toolbox are intended for educational and informational purposes only. They do not constitute financial, legal, tax, or professional advice. While we strive to keep calculations accurate, numbers are based on user inputs and standard assumptions that may not apply to your specific situation. Always consult with a certified professional (such as a CPA, financial advisor, or attorney) before making significant financial or business decisions.
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