Challenge Rules
Reset: How to Restart Your Prop Trading Account from Scratch
The option to restart an evaluation or funded account from scratch, restoring the original balance after paying a reset fee.
Last updated: 2026-04-01
Full Explanation
When you trade a retail account and blow through your balance, that money is simply gone forever. In the prop trading world, however, you have a powerful safety net called a reset. While both retail and prop trading involve real money losses when trades go wrong, the critical difference lies in what happens after you've violated rules or lost too much capital. In retail trading, you'd need to deposit fresh funds to continue. With prop firms, you can pay a reset fee and start over with your original balance restored, giving you another shot at proving your trading skills.
A reset essentially gives you a clean slate by wiping out all your trading history and returning your account to its starting balance. Whether you're in an evaluation challenge trying to hit profit targets or you're trading a funded account and violated the maximum drawdown rule, the reset option lets you begin again as if you're starting day one. This fundamental difference makes prop trading more forgiving than retail trading, but it comes at a cost.
The reset fee typically ranges from 50% to 100% of the original challenge fee, depending on the prop firm and account size. For example, if you paid $300 for a $50,000 challenge, expect to pay between $150 to $300 for a reset. This fee structure means that while you get another chance, it's not free money. You're essentially paying for the privilege of accessing the firm's capital again without having to complete any previous requirements or wait for cooling-off periods.
Understanding when to use a reset requires careful consideration of your trading performance and financial situation. If you failed a challenge early due to emotional trading or a few bad decisions, a reset might make sense if you've identified and can correct those mistakes. However, if you've already used multiple resets without success, you might be throwing good money after bad. The key is honest self-assessment about whether your failure was due to correctable errors or fundamental issues with your trading approach.
One common misconception is that resets are unlimited. While most prop firms don't explicitly limit the number of resets you can purchase, the costs add up quickly. Some traders fall into a reset trap, continuously paying fees without addressing the underlying issues that caused their initial failures. Smart prop traders treat each reset as a learning opportunity, analyzing their previous attempt to identify specific improvements before paying the reset fee.
The timing of when you choose to reset also matters significantly. Some firms offer discounted reset fees immediately after a challenge failure, while others maintain consistent pricing. Additionally, certain prop firms provide free retries under specific conditions, which is always preferable to paying for a reset when available. Before purchasing a reset, check if you qualify for any free retry programs or if waiting for a promotional period might save you money.
Resets work differently for evaluation challenges versus funded accounts. During a challenge, a reset simply restarts your evaluation with the original rules and timeframes. For funded accounts, a reset typically means losing any profit share you've accumulated and returning to the base account size, though some firms may offer partial resets that preserve certain achievements while addressing rule violations.
The psychological aspect of resets can't be ignored. While they provide a valuable second chance, they can also create a safety net mentality where traders take excessive risks because they know they can always reset. Successful prop traders use resets strategically, not as a crutch. They view the reset fee as tuition for an expensive trading lesson and ensure they've genuinely improved their approach before starting over.
Worked Examples
Example 1
Scenario:You're trading a $100,000 challenge with a 10% maximum drawdown rule and lose $12,000, triggering a breach
Original challenge fee: $500, Reset fee (80% of original): $400, Account balance restored to: $100,000
→You pay $400 to restart the challenge with a fresh $100,000 balance and all rules reset to day one conditions
Example 2
Scenario:You fail a $25,000 evaluation after 3 days by violating the daily loss limit of $1,250 with a $2,100 losing day
Original challenge fee: $150, Reset fee (75% of original): $112.50, New attempt starting balance: $25,000
→You can immediately restart the evaluation for $112.50 without waiting periods or completing any prerequisites
Example 3
Scenario:You breach your $50,000 funded account by exceeding the 6% total drawdown after making $2,800 in profits
Account value before breach: $52,800, Reset fee: $225 (75% of original $300 challenge fee), Restored balance: $50,000
→Your $2,800 profit is forfeited, but you regain access to the full $50,000 in capital after paying the reset fee
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How This Applies at Prop Firms
FTMO allows unlimited resets for both evaluation and verification phases at 50% of the original challenge fee, with immediate availability after account closure. MyForexFunds offers resets at 80% of the challenge fee but provides a 30% discount if purchased within 48 hours of failure. The Funded Trader uses a tiered reset system where the fee decreases based on how far you progressed in the original challenge.
Related Terms
These concepts are closely connected to Reset
Frequently Asked Questions