Evaluation rules
Published rules. Same for everyone.
FundedSmart offers Instant, One Step, and Two Step simulated evaluations for Indian Markets. Loss limits and prohibited activities are published upfront on every plan — read them before you start.
FundedSmart evaluations take place in a simulated trading environment. These rules are binding. Passing an evaluation does not guarantee rewards. See our Risk Disclosure for full details.
Trading Rule Transparency & Enforcement Matrix
Every rule is binding and published upfront by clause ID. No hidden clauses, no surprises at payout.
Zero Consistency Rules
No best-day cap and no requirement to spread profit across days. One strong day can carry the profit target.
Minimal-lot pattern
4 or 5 lots on an earlier day, then 1 lot on day 3 or day 4: warning, that attempt is breached, and the account is reset. A repeat disqualifies the account.
Minimum Trade Duration
No trade may be closed within 2 minutes (120 seconds) of its execution. Each position must remain open for at least 2 minutes before a manual or automatic close.
Unlimited Evaluation Time
No 30-day rush or ticking clock to pass Phase 1 or Phase 2. Just open at least 1 trade every 30 days to stay active.
Intraday Only
Open and close every position between 9:15 and 3:15 IST. Carrying a position past the session, overnight, or over the weekend is prohibited.
Personal Expert Advisors (EAs)
Allowed if the automated trading algorithm or EA is your own unique intellectual property (no 3rd-party copy bots).
News Trading Restriction (±10 Mins)
Opening or closing trades within 10 minutes before and after scheduled high-impact events (RBI MPC, Union Budget, CPI) is strictly prohibited.
Option Selling
Selling naked or uncovered options is prohibited at all times on all plans and phases to protect account capital.
Copy Trading & Account Sharing
Third-party trade copiers, passing services, and account sharing result in an immediate hard breach and permanent ban.
Latency Arbitrage & Tick Scalping
Exploiting demo platform latency or feeding toxic arbitrage orders is strictly prohibited. Tick scalping is an ultra-short-term, high-frequency strategy that captures the smallest price moves, known as ticks, with a large volume of trades.
Plan types at launch
Support and traders: cite rules by clause ID (section number + letter), e.g. “Refer to Rules 7.C” or “See 9.C”.
1. Plan types
1.A Instant — Journey: funded stage from day one. Profit target: none. Min trading days: 4 profitable days.
1.B One Step — Journey: Evaluation → Funded. Profit target: 10%. Min trading days: 4.
1.C Two Step — Journey: Phase 1 → Phase 2 → Funded. Profit targets: 8% then 5%. Min trading days: 4 per phase.
1.D Shared operations notes — Loss limits vary by plan (see clause 3). Daily loss resets at midnight UTC. 30-day inactivity applies. Prohibited activities in clause 7 apply to every plan.
1.E Instant loss limits (summary) — Max overall drawdown 5% trailing; daily loss 3%.
1.F One Step loss limits (summary) — Max overall drawdown 8% static; daily loss 4%.
1.G Two Step loss limits (summary) — Max overall drawdown 10% static; daily loss 5%.
See Challenges for plan comparison and Pricing for tiers.
2. Profit targets (by plan)
2.A Two Step — Phase 1 — Profit target 8%, calculated from starting balance.
2.B Two Step — Phase 2 — Profit target 5%, calculated from Phase 2 starting balance.
2.C Two Step — Funded — No fixed profit target. Rewards per Rewards Policy.
2.D One Step — Evaluation — Profit target 10%, calculated from starting balance.
2.E One Step — Funded — No fixed profit target. Rewards per Rewards Policy.
2.F Instant — No profit target; funded-stage rules apply from purchase.
2.G Successful trading day — A trading day under 4.G is a “successful trading day” when end-of-day equity is at least 0.5% above that day’s starting equity (equity-based; open P&L counts). This is a defined term only — no clause uses it to gate account status, the minimum trading-day count, or a pass/fail outcome. The minimal-lot pattern in 4.J remains the operative safeguard for day-count integrity. Instant’s profitable-day test in 4.H is separate and uses a different threshold (any equity gain above zero, not 0.5%).
2.H Example (₹10 Lakh account) — One Step profit target = ₹1,00,000 above starting balance. Two Step Phase 1 profit target = ₹80,000.
3. Loss limits
3.A General drawdown rule — Your account must not fall more than the plan’s max drawdown percentage under the published drawdown type for the current stage.
3.B Instant max overall drawdown — 5%, type trailing, applies to funded stage from day one.
3.C One Step max overall drawdown — 8%, type static, applies to evaluation and funded stage.
3.D Two Step max overall drawdown — 10%, type static, applies to Phase 1, Phase 2, and funded stage.
3.E Trailing drawdown (Instant) — The limit follows equity highs according to Instant’s published trailing rule.
3.F Static drawdown (One Step and Two Step) — The limit is fixed from the phase/stage starting balance (not trailing).
3.G Drawdown example (₹10 Lakh account) — Illustrative floor at starting balance is ₹9,50,000 (Instant 5%), ₹9,20,000 (One Step 8%), or ₹9,00,000 (Two Step 10%). Instant’s trailing floor can move as equity makes new highs — confirm live limits in your dashboard.
3.H Daily loss — general — You must not lose more than the plan’s daily loss percentage of that day’s starting equity in a single trading day.
3.I Instant daily loss limit — 3% (equity-based).
3.J One Step daily loss limit — 4% (equity-based).
3.K Two Step daily loss limit — 5% (equity-based).
3.L Daily loss calculation — Calculated on equity; unrealized (floating) P&L from open positions counts.
3.M Daily loss reset — Resets daily at midnight UTC (00:00–23:59 UTC server day).
3.N Daily loss example (₹10 Lakh account) — Maximum daily loss = ₹30,000 (Instant), ₹40,000 (One Step), or ₹50,000 (Two Step) from the day's starting equity.
3.O Equity definition — Equity means your account balance plus or minus unrealized profit/loss on open positions.
4. Time and activity rules
4.A Instant — minimum trading days — 4 profitable days.
4.B One Step (evaluation) — minimum trading days — 4.
4.C Two Step (evaluation) — minimum trading days — 4 per phase.
4.D Funded stage — minimum trading days — not applicable (—) on One Step and Two Step after evaluation. Instant is covered by 4.A, not by this clause.
4.E Maximum time to pass — Instant: N/A. One Step and Two Step evaluations: Unlimited.
4.F Inactivity expiry — 30 days on Instant, One Step, Two Step, and Funded.
4.G Trading day — A trading day is a server day (midnight-to-midnight UTC) on which you open at least one trade. Closing a position, without opening a trade that day, does not count. A day’s lot size is the largest filled order opened that day, measured in lots. Partial fills of the same order are added together.
4.H Instant profitable day — For Instant, a day counts toward the 4 profitable days in 4.A only when it is a trading day under 4.G and end-of-day equity is above that day’s starting equity (equity-based; open P&L counts).
4.I Inactivity consequence — If you do not open any trades for 30 consecutive days, your account expires. There is no hard deadline to hit your profit target — take the time you need, but stay active. Opening any trade resets this clock.
4.J Minimal-lot pattern — Where 4.A, 4.B, or 4.C applies, compare lot size across days in the current phase. The pattern is met when an earlier day in that phase has a lot size of 4 or 5 lots, and day 3 or day 4 has a lot size of 1 lot.
The first time this pattern is met:
- FundedSmart sends a warning
- The current attempt is breached and does not pass
- The account is reset
Repeating this pattern after that reset disqualifies the account.
This is not a consistency rule. Profit may still come from one day. See 11.C. Trading 1 lot on every day is allowed, because no earlier day was 4 or 5 lots. Keeping day 3 and day 4 at 4 or 5 lots is allowed.
Example — breaches and resets: Day 1 opens 5 lots. Day 2 opens 4 lots. Day 3 or day 4 opens 1 lot. The trader receives a warning, the attempt is breached, and the account is reset.
Example — allowed: Day 1 makes most of the profit target at 4 lots, and days 2, 3, and 4 also open 4 or 5 lots. There is no minimal-lot pattern.
4.K Minimum trade duration — No trade may be closed within 2 minutes (120 seconds) of its execution. Each position must remain open for a minimum of 2 minutes from the time of execution before it can be closed, whether manually or automatically.
This applies on Instant, One Step, and Two Step, in every phase, including the funded stage. The clock starts when the opening order is executed (filled). Closing any part of that position before 120 seconds is the same breach. A manual close, stop-loss, take-profit, Expert Advisor, or any other automatic close all count.
A position opened after 3:13 IST cannot satisfy both this clause and 7.H. Opening a position in the last 2 minutes of the session is a breach.
Breach of 4.K is a hard breach under 10.A. Clause 7.F (tick scalping and other platform abuse) still applies on its own.
5. Indian Markets instruments
5.A Simulation posture — Public Indian Markets evaluations use major Indian index products in a simulated environment.
5.B NIFTY — Included among primary simulated instruments.
5.C BANKNIFTY — Included among primary simulated instruments.
5.D FINNIFTY — Included among primary simulated instruments.
5.E Sensex — Included among primary simulated instruments.
5.F Related Indian F&O — Related Indian F&O products offered on your account may also be available.
5.G Symbol availability — Exact tradable symbols are those shown in your trading dashboard and may change. FundedSmart is not a broker and does not provide live exchange access. Confirm availability via Contact before purchase if you need a specific contract.
6. Position and hedging rules (funded stage)
6.A Max position size — One Step & Two Step — 70% of account size.
6.B Max position size — Instant — 50% of account size.
7. Prohibited activities
The following result in an immediate hard breach (account failed) unless noted:
7.A Copy trading / trade copiers — Prohibited — hard fail.
7.B Third-party copy bots — Prohibited — hard fail.
7.C News trading — Prohibited — hard fail (see clause 9).
7.D Option selling — Prohibited at all times on all plans and phases, including funded accounts.
7.E Arbitrage / latency abuse — Prohibited — hard fail + permanent ban.
7.F Tick scalping / platform abuse — Prohibited — hard fail. Tick scalping is an ultra-short-term, high-frequency trading strategy focused on capturing profits from the smallest possible price movements, known as ticks, by executing a large volume of trades. Closing a position before the minimum duration in 4.K is enforced under 4.K.
7.G Martingale / grid abuse — Prohibited if deemed exploitative — hard fail (discretionary review).
7.H Overnight and weekend holding — Prohibited on all plans and phases, including funded accounts. FundedSmart is intraday only. The session is 9:15 to 3:15 Indian Standard Time. Every position must be opened and closed inside that session. A position still open at 3:15 IST, carried overnight, or carried over the weekend is a hard breach.
8. Allowed with conditions
8.A Expert Advisors (EAs) / bots — Allowed if the strategy is your own; no third-party copy trading.
9. News trading restriction
9.A Scope — News trading is prohibited during all phases of the evaluation process, including funded accounts.
9.B Restricted action — Participants may not open or close any position during the restricted window surrounding a designated high-impact market event.
9.C Restricted window — 10 minutes before → 10 minutes after the scheduled event time.
9.D High-impact events — include, but are not limited to, the events in 9.E through 9.L.
9.E RBI Monetary Policy Committee (MPC) announcements.
9.F India Consumer Price Index (CPI) releases.
9.G India Wholesale Price Index (WPI) releases.
9.H Index of Industrial Production (IIP) data.
9.I Gross Domestic Product (GDP) releases.
9.J Union Budget announcements.
9.K Major election results and other significant political events.
9.L Any other event designated by FundedSmart as high impact.
9.M Enforcement — FundedSmart continuously monitors these events and automatically enforces the restricted trading window. Any trades opened or closed during the restricted period may be considered a violation of the trading rules.
10. What happens if you break a rule?
10.A Hard breach — Account failed immediately; account closed; pay a reset fee to start again.
10.B Policy violation — Permanent ban; no refund (e.g. arbitrage, copy trading, multi-account abuse).
10.C Soft warnings — There are no warning-only outcomes at launch, except clause 4.J. Under 4.J the trader is warned, the current attempt is breached, and the account is reset. The first finding is not a permanent ban.
11. Other rules
11.A One active evaluation per person — KYC enforced at rewards stage.
11.B Multi-account abuse — Permanent ban.
11.C Consistency rule — None (not applied on Instant, One Step, or Two Step). Profit may come from one day or from many days. There is no best-day cap and no requirement to spread profit evenly. Clause 4.J looks at lot size, not at how profit is split across days.
11.D Rule updates — Rules may be updated; material changes will be communicated before they take effect.