The Funding Pips 3-Step Evaluation is designed for traders who want to prove their abilities in a more rigorous and extended format. This evaluation process, which has three phases, is structured to test a trader’s skill, consistency, and risk management over time. In this article, we will break down the details of the 3-Step Evaluation, covering the profit targets, drawdown limits, trading rules, and other key aspects that traders need to know. Whether you’re an experienced trader or looking to challenge yourself, understanding the 3-Step Evaluation is crucial for success.

Profit Targets :-

In the 3-Step Evaluation, traders must meet three profit targets, each corresponding to a different phase of the evaluation.

• Phase 1: The profit target is set at 5%. This phase is the most challenging, as traders need to demonstrate their ability to generate significant returns.
• Phase 2: The profit target in phase 2 also stay the same at 5%, reflecting the need for consistency after achieving the initial target.
• Phase 3: Again, the profit target remains at 5%, ensuring that traders can sustain their performance over a longer period.

Successfully reaching these targets is essential for advancing through the evaluation and ultimately securing a funded trading account.

Daily Drawdown :-

Risk management is a critical component of the 3-Step Evaluation, and the daily drawdown limit is a key part of this. The daily drawdown is set at 5%, meaning that at no point during a trading day should your account’s equity fall by more than 5% from its starting value. This rule is calculated based on the higher value between your account's equity (which includes floating profits or losses) and your balance (which reflects the total after all positions have been closed). Violating this drawdown limit can result in failing the evaluation, so it’s crucial to manage trades carefully throughout the day.

Max Drawdown :-

The maximum drawdown for the 3-Step Evaluation is set at 10%. This is a static drawdown, meaning it remains fixed at 10% of your initial account balance, regardless of any profits you accumulate. This rule ensures that traders are not only focusing on making profits but also on preserving their capital by managing risks effectively. A static drawdown provides a clear and consistent risk limit, helping traders to maintain discipline throughout the evaluation.

Minimum Trading Days :-

To pass the 3-Step Evaluation, traders must trade for at least 3 days in each phase. This requirement is in place to ensure that traders demonstrate consistent performance across multiple sessions. The three-day minimum ensures that traders can handle different market conditions and maintain their discipline over time, rather than relying on a single successful day.

Maximum Trading Days :-

One of the key advantages of the 3-Step Evaluation is that there is no maximum time limit to complete the evaluation. Traders can take as much time as they need to reach the profit targets in each phase. This flexibility allows traders to wait for favorable market conditions and to trade at their own pace, reducing the pressure and enabling more thoughtful and strategic decision-making.

Profit Share :-

Once traders pass the 3-Step Evaluation and move on to a funded account, they are entitled to receive 80% of the profits they generate. This profit share allows traders to keep the majority of their earnings, incentivizing them to perform consistently. Furthermore, Funding Pips offers the opportunity to increase this profit share to 100% once a trader reaches the maximum scaling plan, known as the Hot Seat. This potential for growth makes the 3-Step Evaluation an attractive option for traders looking to maximize their earnings.

Payout Frequency :-

After becoming funded, traders in the 3-Step Evaluation can withdraw their profits every seven days. This regular payout schedule ensures that traders have consistent access to their earnings, allowing them to manage their finances effectively. For those who reach the Hot Seat, the payout frequency becomes even more flexible, with the option to withdraw profits on demand. This feature is particularly appealing for traders who achieve consistent success and want to enjoy immediate access to their earnings.

Leverage :-

Leverage plays a significant role in the 3-Step Evaluation, as it allows traders to control larger positions with a smaller amount of capital. In this evaluation, traders have access to up to 1:50 leverage. The leverage is applied differently depending on the type of financial instrument:

• Forex pairs: 1:50
• Metals: 1:20
• Indices: 1:20
• Energies: 1:10
• Cryptocurrencies: 1:2

This leverage structure provides traders with the flexibility to pursue various trading strategies while managing their risk exposure.

News Trading :-

While Funding Pips offers a great deal of flexibility, there are specific rules regarding trading around high-impact news events. Traders are allowed to hold their positions during these events, but they are not permitted to execute new trades or close positions within 5 minutes before or after the news release. If any trades are made during this restricted window, the profits from those trades will not be counted toward the evaluation. The only exception is if a trade was opened at least 5 hours before the news event. This rule applies to all types of trade execution, including manual orders, pending orders, stop-loss, and take-profit orders.

Holding Trades Overnight and Over Weekends :-

Traders participating in the 3-Step Evaluation are allowed to hold trades overnight and over the weekend. This feature provides flexibility for traders who use longer-term strategies or who prefer not to close positions at the end of each trading day. The ability to hold trades beyond standard market hours can be particularly useful in maintaining a strategy that requires more time to develop or respond to market conditions.

Account Sizes Available :-

The 3-Step Evaluation offers several account sizes, allowing traders to choose the one that best suits their needs and level of experience. The available account sizes are:

• $10,000
• $25,000
• $50,000
• $100,000

These options cater to a range of traders, from those looking to manage a smaller account to those ready to take on more significant capital. Whether you’re just starting out or have considerable experience, there is an account size that can accommodate your trading style and goals.

Conclusion

The Funding Pips 3-Step Evaluation provides a challenging yet rewarding pathway for traders to secure a funded account. With its three distinct profit targets, strict drawdown limits, and flexible trading rules, this evaluation is designed to thoroughly test a trader’s skills, discipline, and consistency. By understanding and following the rules, traders can navigate the evaluation process successfully and move closer to their goal of becoming a funded trader. Whether you’re looking to build on your existing experience or take your trading to the next level, the 3-Step Evaluation offers a robust and rewarding opportunity.