Can You Pass a Futures Evaluation as a Complete Beginner?

If you've been skulking around on TikTok, YouTube, or trading forums lately, you've probably seen people talking about "passing prop firm evaluations." The basic idea is that instead of using your own money to trade, you join a proprietary trading firm (also known as a prop firm), pass an assessment to prove yourself, and if you are successful, you are paid with the firm's money.

That sounds fantastic, doesn't it? You won't have to risk your life savings, have access to a lot of money, and can now finally make the trades you've been practicing on SIM. But the real question is this: even if you're a complete novice, can you pass one of these future tests?

The quick response? Although the odds aren't exactly in your favor, it is possible. Futures trading, particularly under prop firm regulations, is a completely different animal from idly experimenting with stocks or cryptocurrency. Let's dissect this in detail, examining what an assessment actually is, how to pass, and whether or not novices should even try it.

What’s a Futures Evaluation Anyway?

In essence, a futures prop firm review is a simulation. A demo account with limitations, objectives, and risk levels is given to you. Your assignment? Until you hit the profit target without breaking any rules, live-trade those accounts as though they were real.

Each firm is slightly unique, but these are the key things you'll typically find:

• Profit goal – You may be required to earn, for example, $3,000 before you can advance.
• Daily loss limit – Lose more than an established amount in a single day (such as $1,000), and you lose.
• Total drawdown – Dip below a designated account value (say $48,000 in a $50,000 account), and you lose.
• Minimum number of trading days – Some brokerages require you to trade for a minimum of 7 or 10 days, even if you've already reached the goal.
• Contract size regulations – They'll usually restrict the number of contracts you can trade, particularly initially.

It's more akin to a video game with mission requirements and a health bar. The game is over if you use up all of your "health" (risk).

Now, this might seem manageable to a total novice. Before losing $2k, make $3k? That doesn't seem like a big deal. This is where reality sets in, though, as futures markets move quickly, leverage is enormous, and errors are penalized immediately.

Why Beginners Struggle in Evaluations

Passing a futures test isn't meant to be simple. Prop firms take profits from traders who fail tests and try again, not from everyone leaving funded on their first attempt.

The following are the biggest stumbling blocks that newbies hit:

Risk Management Is Harsh

Futures contracts trade in ticks. The E-mini S&P 500 Futures (ES), for instance, trades in 0.25 increments and every tick is worth $12.50. Sounds insignificant… until you know the market can rip 10 points against you in seconds and take away $500 on a single contract.

If you don't have a clue about handling stop-losses, scaling in/out, or sizing correctly, you'll blow the account even before you'd have a chance to breathe.

Emotional Control

SIM trading is one thing. Trading an assessment where you have paid money in advance and know that you have only one attempt? That's a completely different ball game of pressure. Newbies have the tendency to "revenge trade" when they're losing or go all-in attempting to reach the target as fast as possible. Both tend to end in disaster.

Market Knowledge

Futures markets are not such stocks where you could sit on a position for several months. They are intraday leveraged instruments that need to be timed exactly. If you don't know when economic reports are being released or how the S&P behaves at major levels, then you're flying blind.

Rule Traps

Prop firms adore rules. And most newbies don't even know they've broken one until it's too late. Trade too large, stay long after the session closes, or hit the trailing drawdown in a way that's not even aware? Bam—failed.

But Wait… Do Beginners Ever Actually Pass?

Yes. Believe it or not, some newbies do pass. Typically, it's one of two situations:

• Beginner's luck – They get a hot hand, perhaps on a trend day in the S&P or crude oil, and nail the target before inflicting too much damage.
• They've prepared intensely – Some newbies arrive ready to go, having demo traded for months, learning order flow, observing price action, and taking it seriously before trying an evaluation.

The important thing here is that even if a beginner gets by, that's not indicative of long-term success. Many new traders ruin their funded accounts within days because the pressure of actually trading real money gets to them.

The Test Isn't All About Money—It's About Routine

Something a great many newbies neglect is that tests are more about demonstrating consistency than achieving the profit target. Prop firms desire traders who:

• Are able to adhere to guidelines.
• Can manage risk.
• Don't go emotional after a loss.
• Be aware of the distinction between taking a trade setup and gambling.

So even if you technically pass, but you did it by going "all in" on two trades, you're not actually ready to be a funded trader. The test is meant to simulate how you'd act with real firm capital.

What Beginners Can Do to Increase Their Odds

Okay, so it sounds tough—but not impossible. If you’re a complete beginner and you’re determined to give it a shot, here are some realistic tips.

Don’t Rush In

Most prop companies will allow you to trade on a SIM before you have to pay for an evaluation. Take advantage of it! Practice for at least a month with the same rules of the evaluation, so you will understand how the drawdown is, and how much risk you can have per trade.

Concentrate on One Market

Don't attempt to trade everything—crude, gold, S&P, Nasdaq, Eurodollar—all at the same time. Choose one. The E-mini (or Micro E-mini) S&P 500 is a reasonable place to begin because it's very liquid and has well-defined levels.

Risk Small

When the analysis leaves you with space for 3 contracts, don't take all 3. Begin with 1 micro contract until you're able to expand consistently. Keep in mind: survival is the name of the game.

Journal Everything

Record your trades, what you observed, the way you felt, and if you adhered to your plan. Novice traders who actually look at their errors learn 10x faster than those who just "wing it."

Don't Chase the Target

The fastest way to blow up is to try to hit the profit target in one day, forcing trades. Slow and steady wins. Even $200/day compounds quickly in an evaluation.