The process of restarting an account with a fresh balance and a clean rule slate, usually at a reduced cost compared to purchasing a new evaluation. An account reset restores the original starting conditions. Resets are most commonly used for failed evaluation accounts, but some firms also allow resets for funded accounts.
Why It Matters
Account resets offer a more affordable way to try again after failing an evaluation. Instead of paying full price for a new challenge, resets usually cost about 40 to 60 percent less. For traders who were close to passing but made one costly mistake, a reset allows them to apply what they learned immediately without the full financial penalty. Depending on the firm, a reset may be available at any time or only after the account has failed. However, repeatedly resetting without understanding why the account failed can waste money. A reset should be used after clearly identifying what went wrong and what will be done differently in the next attempt.
Example
- 1You fail a $100,000 evaluation after breaching the 6% trailing drawdown on day 18 while being $2,000 away from the profit target.
- 2Instead of purchasing a new $349 evaluation, you pay $149 for an account reset.
Common Mistakes
- ✖Resetting immediately without analyzing why you failed
- ✖Not comparing reset cost to new evaluation cost during promotional periods
- ✖Using resets as a crutch instead of addressing fundamental strategy or psychology issues