Prop firm glossary
Answer in the first sentence, quantified example from the verified rules, illustrating page. Rules last verified: see each program page.
Max daily loss
The max daily loss is the loss (often realized + unrealized PnL) beyond which the day fails the challenge.
FTMO 2-Step: 5% of the initial balance; The5ers High Stakes: 3% of day-start equity (verified 2026-10-01).
Static drawdown
A static drawdown is a total-loss limit computed on the initial balance: it does not move as the account gains.
FTMO 2-Step and FundedNext Stellar 2-Step: 10% static of the initial balance (verified 2026-10-01 and 2026-10-16).
Trailing drawdown
A trailing drawdown follows the account high-water mark: the limit rises with gains.
FundedNext Stellar Instant: 6% trailing max loss, capped at the initial balance — never beyond −6% of starting balance (verified 2026-10-16).
Daily-loss anchor
The anchor describes what the daily loss is computed on: a fixed initial balance or the day-start equity.
FTMO: anchored to the initial balance; The5ers High Stakes: to the prior-close max(balance, equity) (verified 2026-10-01).
Minimum trading days
Minimum trading days are the number of days with at least one trade required to validate a phase.
FTMO 2-Step: 4 days; FundedNext Stellar 2-Step: 5; Stellar Lite: 2 days for accounts purchased or reset on or after 12 Oct 2026, 5 before (purchase-date rule, help center verified 2026-10-17).
Profit target
The profit target is the percentage gain required to pass a phase.
FundedNext Stellar 2-Step: 8% in phase 1 then 5% in phase 2 (verified 2026-10-16).
Consistency rule
A consistency rule caps the share of a single day (or of very fast trades) in the profit.
FundedNext: the “Quick Strike” caps sub-30-second-trade profits at 30%; FTMO 1-Step: “Best Day” ≤ 50% (FTMO rules; 1-Step outside the simulator).
Instant funding
Instant funding provides an already-funded account with no challenge: no profit target, no daily loss.
FundedNext Stellar Instant: from $2,000, only a 6% trailing (capped) max loss applies (verified 2026-10-16).
Passing a phase
Passing a phase = reaching the target without touching any barrier, while meeting minimum days and consistency.
The simulator computes the probability of passing all phases of a program, with a 95% confidence interval.
Pass probability
The pass probability is the share of Monte Carlo paths that pass all phases, under stated assumptions.
Reference profile (45% win rate, 1.5R / 1R, 1% risk): FTMO 2-Step 100k ≈ 64.5% (95% CI 62.1–66.9) — seed 42, 1,500 paths.
Cost to get funded
Expected cost to get funded = fee × expected number of attempts (geometric law on the pass probability).
FTMO 2-Step 100k: 439 EUR fee, 64,5 % probability → ≈ 680 expected (95% CI 439–1756) under the reference profile.
Reference profile
The reference profile is the set of assumptions shown with every figure: 45% win rate, 1.5R / 1R, 1% risk, ~2.5 trades/day.
1,500 paths, seed 42 — recomputed at each deployment, never invented per page.
95% confidence interval
The 95% confidence interval (Wilson) bounds the estimated probability: the wider it is, the less precise the estimate.
Stellar 2-Step 25k: 64.7% (95% CI 62.3–67.1) under the reference profile.
Cross-validation
Cross-validation compares PropSim with an independent engine (LuxAlgo, MIT) on frozen rules and profile.
Three frozen challenges (FTMO, FundedNext, The5ers), documented gap causes (consistency, daily anchor, RNG) — figures on the page.
Account sizes
In percentage terms, the pass probability does not depend on account size: barriers are percentages of the balance.
One program page covers all sizes (anchors #10k…#200k): only fees and dollar amounts change.
Educational tool. Probabilities come from simulations under simplified assumptions; they do not guarantee any outcome. Past performance is not indicative of future results. Trading involves a substantial risk of loss. This site is not affiliated with or endorsed by the prop firms mentioned — partner links, marked as such, are the only exception.