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Lesson 2 of 8 ~5 min + checkpoint

Evaluation Maths: Why Most Fail

Written and reviewed in-house. No named analyst yetUpdated Jul 19, 2026

The idea in one breath: Almost nobody fails a prop evaluation because their entries were bad. They fail because they breached a limit, and whether you breach is arithmetic you can do before the first trade.

Convert the percentage into bullets

A 5% daily loss limit with 0.5% risk per trade gives ten losses of headroom. At 2% per trade it gives two. That number — bullets, not percentages — is the one worth internalising, because it turns an abstract cap into something you can feel spending.

Where the account actually dies

Two losses in, the instinct is to make it back on the next one. Doubling size after two losses turns a 20% day into a 60% day on a single trade, and the third loss ends the evaluation. This sequence, not entry quality, is the dominant failure mode.

Checkpoint

A $100,000 account has a 5% daily loss limit. You risk 0.5% per trade. How many losses can the day absorb? Enter the count.

Account
$100,000
Risk
5%
Entry
100
Stop
90
Next

Put it on a live chart

You have done the checkpoint. The concept is worth more on a symbol you actually care about than on a teaching example — the first read is free and needs no account.

Grade a chart free

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