Planning a Two-Step Evaluation: Risk Units, Targets and Losing Sequences

Define the account before doing the arithmetic

Write down the selected program, account size, evaluation phase and dated agreement. Record the profit objective and every loss boundary separately. A daily limit and a total limit can use different inputs or reset times. If an essential definition is missing, the model is incomplete.

A hypothetical risk-unit calculation

Assume only for illustration that one planned loss, called 1R, equals 0.5% of starting balance. Ten wins worth 2R each and ten losses worth 1R each sum to +10R, or +5% before costs. That sequence does not reach an illustrative 8% objective. A different ordering can also breach a loss boundary before the final total is reached. These are arithmetic examples, not proposed account settings.

Test sequences and operational costs

Replay different orderings of gains and losses, include commissions and slippage, and examine simultaneous exposure. Keep an evaluation fee or renewal outside the simulated trading balance unless the agreement says it changes that balance. A second phase needs a separate rule sheet. No risk percentage guarantees survival or demonstrates that a strategy has positive expectancy.

Sources and scope

• Official reference 1

Content review: 31 October 2026. These references support further checking; this article does not certify current prices, residency eligibility or payout performance. Numerical examples are hypothetical unless explicitly linked to a dated primary record. This is educational information, not a forecast or a promise of passing an evaluation. Check the selected account’s current agreement before relying on a rule.