Paying a reduced fee to restart a failed prop-firm evaluation from the original balance without buying a new one.
Resets are cheaper than new evaluations and are a major revenue source for firms. A trader who keeps resetting is paying a monthly subscription to a test they are not passing.
Before resetting, the useful question is whether the failure came from a rule breach (trailing-drawdown, daily-drawdown) or from the strategy itself.
Example: a $150 evaluation offers a $80 reset. Three resets cost $240, more than a fresh evaluation, often for the same result.
Original diagrams for the ideas on this page. Illustrative, not real market data.
Equity curve and drawdown. An account balance plotted month by month. The fall from the $16,000 peak to the $12,000 trough is a 25% drawdown, and the shaded area lasts until the balance climbs back to the old peak.
Educational only, not advice. Spotted an error? Post in Site Feedback.