Find your optimal risk per trade to minimize cost and time to funding. Powered by 100,000 Monte Carlo simulations.
A Monte Carlo simulation runs thousands of random trading scenarios using your strategy's win rate and risk-reward ratio. Each simulation trades one by one until either the profit target is hit (pass) or the drawdown limit is breached (fail). By running 10,000 scenarios per risk level, we get statistically reliable pass rate estimates.
For each risk level, we simulate 10,000 independent challenge attempts. Each attempt trades until the profit target is reached or the max drawdown is hit. The pass rate is simply the percentage of attempts that successfully hit the target before blowing the drawdown.
Initial drawdown measures losses from your starting balance — a fixed floor. EOD (End of Day) also uses a static threshold from your starting balance but is only checked at the close of each trading day, not intraday. Trailing drawdown tracks from your highest balance reached — much stricter because as your account grows, the "floor" rises with it.
The optimal risk level minimizes your expected total cost to get funded. Lower risk gives higher pass rates but takes more trades. Higher risk is faster but fails more often. The optimal point balances both to minimize the total money spent on challenge fees.
The expected cost is a mathematical average — you might spend more or less. The 90% confidence cost is the budget you need for a 90% probability of passing at least once. This is what you should actually plan to spend.
Single-phase challenges require hitting one profit target. Two-phase challenges require passing an evaluation phase (full target) then a verification phase (half target) — both must be passed consecutively. Two-phase is significantly harder and more expensive.