Vol. 02 The Phases
The Phases.
A funded trader passes through three distinct regimes. Each has different drawdown mechanics, different psychological pressures, and different ways accounts end. Knowing which phase you're in changes how you should trade.
Evaluation
Trailing drawdown is active. Every loss tightens the leash. Most failures occur here.
- → Trailing DD active
- → No buffer
- → Pressure to perform
Early Funded
Live capital, but the trailing drawdown still bites. Buffer is thin.
- → Trailing DD continues
- → Buffer building
- → Behavioral pressure peaks
Scaling
Static drawdown locks in. Survival depends on disciplined growth, not heroics.
- → Static DD
- → Compounding mindset
- → Process > outcome
Evaluation
Trailing drawdown is active. Every loss tightens the leash. Most failures occur here.
- → Trailing DD active
- → No buffer
- → Pressure to perform
Early Funded
Live capital, but the trailing drawdown still bites. Buffer is thin.
- → Trailing DD continues
- → Buffer building
- → Behavioral pressure peaks
Scaling
Static drawdown locks in. Survival depends on disciplined growth, not heroics.
- → Static DD
- → Compounding mindset
- → Process > outcome
Insight
Most accounts don't fail in all phases equally.
Failure is concentrated in Phase 0 and Phase 1, where trailing drawdown turns equity gains into tighter constraints. Once an account transitions to static drawdown in Phase 2, survival probability rises dramatically.
See the full breakdown