Lark Funding is a popular prop firm that offers a unique 2-Stage Evaluation program. This process is designed to make sure that only the most skilled and disciplined traders get funded. In this article, we’ll explain how this evaluation works, covering important details like profit targets, drawdowns, and account sizes. Whether you’re a pro or just starting out, understanding these details will help you make the most of your trading journey.

Profit Target :-

Phase 1:

The first phase of the evaluation focuses on making sure you can hit a profit target of 8% without breaking any of the risk management rules. This stage is crucial because it shows whether you can make consistent profits while sticking to the rules.

Phase 2:

If you pass Phase 1, you move on to Phase 2. In this phase, the profit target is lower and has been set at 5%. This phase focuses more on how consistent you are.

Risk Management Rules :-

Risk management is essential in trading, and Lark Funding takes it very seriously. The rules for daily and maximum drawdowns are in place to protect both you and the firm from significant losses.

Daily Drawdown:

The daily drawdown limit is 5% and it is calculated based on your account balance at the end of each trading day, specifically at 5 PM EST. This rule helps ensure that you don’t let losses get out of control and encourages careful trading each day.

Max Drawdown:

The maximum drawdown is set at 10% of your initial balance, and it stays fixed at that level. For example, if you start with a $50,000 account, the most you can lose before failing the evaluation is $5,000. This rule doesn’t change, even if you make profits and grow your account, giving you a clear limit on how much risk you can take.

Unlimited Trading Days:-

One of the great things about Lark Funding’s 2-Stage Evaluation is that there’s no limit on how many days you can take to complete it. With Lark Funding, you can trade at your own pace, making sure you’re making well-thought-out decisions without the stress of a ticking clock.

Profit Share and Payouts:-

Lark Funding offers a generous profit-sharing model. You start with an 80% share of the profits, which can increase to 90% if you continue to trade successfully.

Once you’re funded, your first payout will be available after 30 days. After that, you can withdraw your earnings every 14 days. This regular payout schedule allows you to access your profits frequently, whether you want to reinvest them or take them out.

Leverage :-

Leverage allows you to control larger positions with a smaller amount of money, and Lark Funding offers competitive rates. For Forex and Metals, the standard leverage is 25:1. Indices come with a leverage of 10:1, and Cryptos have a leverage of 2:1.

If you’re comfortable with taking on more risk for the chance of higher rewards, you can double your leverage to 30:1 for Forex and Metals by paying an additional 25% of the challenge fee. This option gives you the flexibility to tailor your trading strategy to fit your personal risk tolerance.

Trading Flexibility :-

Lark Funding’s evaluation process is designed to suit different trading styles, whether you’re someone who likes to trade the news or prefers to hold positions overnight.

News Trading

There is no restriction on trading during major news events. This is great if your strategy involves taking advantage of the volatility that often comes with big news announcements.

Overnight Holding

You’re allowed to hold trades overnight, which is helpful if you’re a swing trader who needs more time for your trades to develop.

Weekend Holding

By default, holding trades over the weekend isn’t allowed, but you can add this option for a small fee. This is especially useful if you trade markets that are open on weekends or if you need more time for your trades to reach their full potential.

Account Sizes :-

Lark Funding offers a variety of account sizes, so you can start with an amount that fits your comfort level. Whether you’re looking to start small or manage a larger account, you can choose from the following options: $5,000, $10,000, $25,000, $50,000, $100,000, and $200,000.

Add-Ons :-

Lark Funding allows you to customize your trading experience with two key add-ons: doubling your leverage and holding trades over the weekend.

If you want to double your leverage to 30:1, you can do so for an extra 25% of the challenge fee. Additionally, for a small fee, you can get the ability to hold trades over the weekend, which can be crucial if your strategy requires more time.

Conclusion

Lark Funding’s 2-Stage Evaluation offers a balanced approach to prop trading, combining strict risk management with the flexibility to trade at your own pace. The option to scale up your profit share to 90%, along with the ability to customize your trading experience with add-ons, makes Lark Funding a strong choice for serious traders.

Whether you’re just starting out or you’re ready to manage a large account, Lark Funding provides the tools and support you need to succeed. The evaluation process is thorough, ensuring that only the most consistent and disciplined traders get funded, which benefits both the trader and the firm.