Trading & signals glossary
What is a funded trading account?
A funded account is a trading account backed by a prop firm’s capital, earned by passing an evaluation, often called a challenge: hit a profit target without breaking certain loss limits, typically 5% in a day and 10% overall. Pass it, and you trade the firm’s capital and keep a share of the profits.
How it works
You pay for an evaluation (the “challenge”) with a set of rules: a profit target, a max daily loss and a max overall loss.
Break a limit at any point and the account is gone, even if it would have recovered later.
That’s why your worst day matters as much as your final result: one bad day is enough to fail.
Example: following a channel on a funded account
- A $100,000 account with a 5% daily loss limit ($5,000). You risk 1% per trade.
- One day the channel posts 6 signals: 5 stops and 1 target at +1 R. That’s −4 R → −4%.
- Another day, 6 stops in a row: −6 R → −6%. Daily limit breached: account blown.
- The channel can still finish the month green; your funded account can’t.
Calculate it
Run the numbers yourself
Free Verpips tools that do this calculation for you.
Our data · Verpips
What we measure in signal channels
- 3 of 18
- channels with at least one day of −5 R or worse
- −3.8 R
- a channel’s typical worst day
3 of 18 channels with at least one day of −5 R or worse (a broken daily loss limit at 1% risk per trade)
Risking 1% per trade, 3 of the 18 channels we measure had at least one day with losses of 5 R or more: following every signal, you would have breached a funded account’s 5% daily loss limit. A channel’s typical worst day was −3.8 R.
Verpips data as of Oct 7, 2026, measured against the real price. See how we measure and the channel directory.
Types and variations
- One-step challenge
- A single profit target to hit.
- Two-step challenge
- Two targets back to back, with the same loss rules.
- Instant funding
- No evaluation; more expensive and with stricter rules.
Why it matters when choosing a signal channel
Plenty of channels sell signals as “prop firm friendly.” What actually decides that is their worst day and their drawdown, not how the month ended.
Common traps
- Claiming “we passed the challenge” with screenshots of one account out of many.
- Selling signals for prop firm challenges without showing the worst day.
- Undisclosed affiliate commissions from the prop firm.
Key takeaways
- ✓Funded account = trading a firm’s capital after passing an evaluation.
- ✓One day over the limit is enough to lose it.
- ✓Check a channel’s worst day and drawdown before following it on a funded account.
- ✓Risking less per trade gives you more room.
FAQ: funded account (prop firm)
What is a prop firm?
A company that gives traders its capital to trade once they pass an evaluation, in exchange for a share of the profits.
Can you use Telegram signals on a funded account?
Many prop firms allow it, but the risk of a bad day is the same. Check the channel’s worst day.
What happens if I break the daily loss limit?
At most prop firms, the account is closed on the spot.
Channel by channel
See these numbers for each channel, not as an average.
With a free account you see each channel’s result in R, its drawdown, and what it announced versus what actually happened.