Many traders discover an uncomfortable truth: an algorithm that makes money is not automatically an algorithm that can pass a prop firm evaluation. That happens because prop firm tests are not ordinary trading accounts. The algorithm must balance profitability with strict operational discipline.

Imagine launching a strategy with a strong historical equity curve, only to lose the evaluation because one volatile session crosses the firm’s daily drawdown limit. The explanation is straightforward: a proprietary trading evaluation is a rule-constrained risk test, not merely a search for profit.