How Challenges Work

What Is A Challenge?

A challenge (also called an evaluation) is a test that prop firms use to check if you can trade profitably while following risk rules. You pay a one-time fee to enter, trade under specific conditions, and if you meet the targets without breaking the rules, you graduate to a funded account.

Think of it like a driving test. You prove you can drive safely before you get your license. The challenge proves you can trade safely before you get access to the firm's capital.

The Two-Phase System

At Albatrix Funded, the challenge has two phases. Both phases have the same rules:

• Profit target: You need to make 6% profit on the account size. For a $10,000 account, that is $600.
• No time limit: You can take as long as you need. There is no rush.
• Minimum 4 trading days: You must trade at least 4 separate calendar days in each phase.
• Daily drawdown: You cannot lose more than 3% of the previous day's closing equity in a single day.
• Max drawdown: You cannot lose more than 7% of your starting balance overall.

What Are Drawdown Limits?

Drawdown limits protect the firm's capital by preventing you from losing too much. Think of them as guardrails:

• Daily drawdown (3%): Each day, your account starts with a limit based on the previous day's closing value. If you lose more than 3% of that value in one day, your challenge is over.
• Max drawdown (7%): Your account balance can never fall more than 7% below the starting balance at any point. If it does, the challenge is over.

For example, on a $10,000 account, the max drawdown means your balance can never go below $9,300. If it hits $9,299 or lower, the challenge fails immediately.

What Happens When You Pass

When you pass Phase 1, you move to Phase 2 (same rules). When you pass Phase 2, you receive a funded account. On the funded account:

• Leverage drops to 1:30 (from 1:100 during the challenge)
• The consistency rule applies (no single day can make up more than 15% of total profits)
• You keep up to 95% of the profits, with the firm taking 5-20%
• You can request a payout at any time

Profit Split Explained

The profit split is how you and the firm divide the money you earn. If your profit split is 80/20, you keep 80% of every dollar you make and the firm keeps 20%. At Albatrix Funded, the split starts at 80/20 and can go up to 95/5 based on your performance and account size.

For example, if you earn $1,000 on an 80/20 split, you keep $800 and the firm keeps $200. There are no other fees deducted from your profits.