A CMC Funded challenge is an evaluation on a simulated account. You pass it by reaching a profit target without hitting either of two loss limits, and each of those figures is a fixed share of the balance you start with. Work them out in dollars for your account size before you place a trade.
What you will learn
- How the Classic 2-Step and Direct 1-Step routes differ
- The profit target, daily loss limit and maximum loss on each route, in dollars
- What the minimum trading days and the absence of a time limit mean for your pace
- How the target compares with the room you have to lose
Classic 2-Step and Direct 1-Step
Classic 2-Step has two evaluation phases and Direct 1-Step has one. Both run on the Match-Trader platform, come in four sizes ($10K, $25K, $50K and $100K, all in US dollars) and lead to the same reward stage. Every account is simulated, in the evaluation and at the reward stage.
Classic asks you to pass twice, and in return gives you wider loss limits and a lower fee. Direct asks once, with tighter limits. The fees are:
- Classic: $99 for $10K, $199 for $25K, $299 for $50K and $499 for $100K.
- Direct: $149 for $10K, $249 for $25K, $349 for $50K and $549 for $100K.
You choose your leverage when you buy, from 1:10 up to 1:500, and the price is the same at every level. Higher leverage magnifies both gains and losses.
The profit target
The profit target is the gain that clears a phase. On Classic it is 8% in Phase 1 and 5% in Phase 2. On Direct it is 10%, in a single phase.
On a $10,000 account, the Classic Phase 1 target is $800 and the Direct target is $1,000. On $50,000 the two targets are $4,000 and $5,000, and on $100,000 they are $8,000 and $10,000.
No phase has a time limit, and reaching the target quickly earns nothing extra. A trader risking $50 a trade needs more winning trades to reach $800 than one risking $200, and the only cost is time. Lesson 3 turns this into a trade count.
The two loss limits
The daily loss limit is the most the account may lose in one trading day: 5% of your equity at the start of that day on Classic and 4% on Direct. It is measured on equity, so losses on open positions count as well as closed ones. Other prop firms often call this the daily drawdown.
The maximum loss is the floor for the whole account, 10% below the starting balance on Classic and 6% on Direct. It is fixed, so it never moves, however well you trade. In dollars, with the daily limit as it stands on the first day:
- Classic: a $500 daily limit and a $9,000 floor on $10K, $1,250 and $22,500 on $25K, $2,500 and $45,000 on $50K, and $5,000 and $90,000 on $100K.
- Direct: a $400 daily limit and a $9,400 floor on $10K, $1,000 and $23,500 on $25K, $2,000 and $47,000 on $50K, and $4,000 and $94,000 on $100K.
Reaching either limit ends the account, and there is no warning stage. Lesson 4 works through both limits with examples.
Minimum trading days and no deadline
Each phase needs at least 3 trading days. That means 3 on Direct, and 3 in each of Classic's two phases, so a Classic account needs 6 or more before it reaches the reward stage. The rule stops a single lucky session from clearing a phase.
With no deadline, you never have a reason to raise your risk late in a phase to catch up. News trading is allowed, and you may hold positions overnight and over the weekend, with holding costs on anything kept open overnight.
Compare the target with your room to lose
On a $10,000 Classic account, Phase 1 asks for $800 and gives you $1,000 of room above the floor, so you could fall by more than the target and still be in the challenge. On a $10,000 Direct account the target is $1,000 and the room is $600: you have to gain more than you are allowed to lose.
The same gap shows up when you count trades. At $50 of risk a trade on $10,000, 20 straight full losses would reach the Classic floor, and 10 in one day would reach the daily limit. On Direct the counts are 12 and 8. Direct fits a trader whose risk per trade is already small and steady. Classic leaves more space for a slow start.
The reward stage
Pass the evaluation (both phases on Classic, the single phase on Direct) and you move to the reward stage. The account is still simulated. Your reward split is 80%, or 90% if you bought the add-on. Optional extras, such as a higher reward split, are offered at checkout before you pay. Lesson 8 covers that step.
The rules page has the full rules for every size, and the challenges page shows the two routes side by side.
Check your understanding
1. On a $25,000 Classic account, what is the Phase 1 target, and where is the floor?
The target is 8% of $25,000, which is $2,000. The floor is $22,500, 10% below the starting balance.
2. On a $50,000 Direct account, what are the first day's daily limit and the floor in dollars?
The daily limit is 4% of $50,000, which is $2,000. The floor is $47,000.
3. You are five trading days into Classic Phase 1 and up 3%. Should you raise your risk to finish sooner?
No. There is no time limit, so finishing sooner earns nothing, while a bigger risk per trade brings the floor closer.
Key points
- Classic 2-Step has targets of 8% and then 5%. Direct 1-Step has one target of 10%.
- The daily loss limit is 5% of your equity at the start of each day on Classic and 4% on Direct, measured on equity.
- The maximum loss is 10% on Classic and 6% on Direct, and the floor never moves.
- Each phase needs at least 3 trading days, and there is no time limit.
- At the reward stage the reward split is 80%, or 90% with the add-on.
Next lesson: Size every position so one loss stays small
All trading is simulated. Rewards are based on performance and are not guaranteed.