The ThinkCapital evaluation process is designed to identify disciplined, profitable traders who can manage risk effectively. As an evaluation prop firm, ThinkCapital uses a structured approach that mirrors real-world trading conditions while giving traders the flexibility to demonstrate their skills over time.
Phase 1: The Challenge — What to Expect
The first phase of the ThinkCapital challenge is where most traders either succeed or fail. Here’s what you need to know:
Profit Target: You must achieve an 8% return on the simulated account balance. For a $25,000 account, this means reaching $27,000 in equity. For a $50,000 account, the target is $54,000. The 8% target is considered moderate in the industry — some prop firms require 10%, while others ask for only 6%.
Daily Loss Limit (5%): You cannot lose more than 5% of the initial account balance in a single trading day. This is calculated based on the equity at the start of the trading day. If your daily loss approaches this limit, it’s crucial to reduce position sizes or stop trading for the day.
Maximum Drawdown (10%): Your account equity must never fall more than 10% below the starting balance. This is a trailing drawdown calculated from the highest point your account has reached. ThinkCapital uses a balance-based drawdown (not equity-based), which is more favorable than equity-based models used by some competitors.
No Time Limit: Unlike many prop trading firms that impose 30-day or 60-day deadlines, ThinkCapital gives you unlimited time to reach the profit target. This is a massive advantage for swing traders and those who prefer to wait for high-probability setups rather than forcing trades to meet arbitrary deadlines.
Phase 2: The Verification — Sealing the Deal
After passing Phase 1, you move to the verification phase. The rules remain identical except the profit target is reduced to 5%. This phase serves as a confirmation that your trading approach is sustainable and not the result of a lucky streak.
Many traders find Phase 2 easier than Phase 1 because they’ve already proven they can meet the profit target. The key is to maintain the same discipline and risk management practices that got you through Phase 1. Don’t get overconfident — many traders fail Phase 2 because they increase position sizes or take unnecessary risks after passing Phase 1.
From Evaluation to Funded Account
Once you pass both phases, ThinkCapital transitions you to a live funded trading account. This is where the real opportunity begins. Your profit split starts at 80%, meaning you keep 80% of all profits you generate. As you demonstrate consistent performance over time, your profit split can increase to 85% or even 90% — one of the highest payouts in the prop firm industry.
ThinkCapital also offers a scaling plan that allows successful traders to increase their account size by up to 400%. For example, if you start with a $50,000 account and consistently generate profits, you could eventually trade a $200,000 account — all while keeping the same favorable profit split.
