Question 1

Why do most prop firm evaluations end in failure?

Accepted Answer

Most attempts end on a rule breach, not on running out of time. Strict trailing drawdown and daily loss limits leave little room for the normal losing streaks that come from variance, and overtrading to hit a target faster pushes accounts into that limited room sooner.

Question 2

What is variance in the context of an evaluation?

Accepted Answer

Variance is the natural run to run swing in results even when an approach has a real edge. A method that wins more often than it loses can still string several losses together by chance, and a tight drawdown rule can fail the account during one of those normal streaks.

Question 3

Does a high win rate guarantee passing an evaluation?

Accepted Answer

No. A high win rate can still produce losing streaks, and a single oversized loss or one bad day can breach a daily loss limit no matter how many small wins came before it. Passing depends on staying inside the rules, not on any single statistic.