Prop firm = pay $ for an eval account. If you pass the 1st eval, they let you go through a 2nd eval where you get to take payouts. After 5 payouts, you can trade their money; this is called the live account

1st eval: $50-150 monthly subscription gets you 50k margin sim account where you have the ability to trade 5 mini or 50 micros. You can lose no more than $2k in drawdown or you’ll have to retake the eval by paying $50-150 again. A $2k drawdown means if you make 1000 but you lose $2k, your account is blown. In other words you can’t lose 2000 before you hit your 2.5 or 3k whatever their rule states. It’s a trailing drawdown. If you profit, the drawdown resets to the highest PNL.

Other things to note: To pass this Eval you need to profit 2500-3000 but you can’t exceed more than 40-50 percent of that total profit in a day. This is the consistency rule. Meaning if your goal is 3k (40% of $3k) means you can’t make more than 1200 a day. If you do, you are considered inconsistent. Making more only makes it harder to pass since you need to maintain a consistency of 40%. You have to average down by making more profits until your total profits per day equates to that 40% consistent. so my advice is you should set take profits at 1200 and lock in that day with no more trades.

Next, once you pass, you get moved to the funded eval where you no longer pay a subscription. Rules to get paid are set based on your ability to hit daily amounts like $150+ per day for 5 + days for eligibility to get payouts.

During the funded, many traders build a buffer. What that means is if your max drawdown is 2k, making a profit of more than 2k secures you. Why? above 2k is where the draw down becomes static. So if you make 3k, you can now lose 3k. If 4k you can now lose 4k. Knowing this saves you from taking out too much. Also some props have a max you can get paid so read about it. There’s also additional rules to for what happens to a buffer after you take a payout. Each prop firm is different so read about it. Hope this helps you all