The target is a deadline. The drawdown is a wall.
Every challenge has the same structure: reach a profit target without breaching a loss limit. Traders focus on the target and are removed by the limit.
The target is optional in any given week. The limit is not. Internalising that asymmetry is most of what passing requires.
The four rules that matter
1. Profit target. Usually 8–10% of the account. This is the goal, and it is the one traders fixate on.
2. Daily loss limit. Usually 4–5%. Breached in a single day and the account is gone — regardless of overall profit. Note carefully: most firms calculate this from equity, meaning open floating losses count, not just closed ones.
3. Maximum drawdown. Usually 6–12%. The one that ends most attempts. Whether it is static or trailing changes everything — see the next lesson.
4. Minimum trading days. Often 3–10. Prevents passing on one lucky trade, and quietly prevents you from rushing.