The Free $1K Challenge is BrightFunded's way of giving every trader the opportunity to prove their skills at no cost. No fee, no card, no catch — just pure trading.
How does it work?
Complete one single evaluation phase to access your funded account — completely free.
Phase | Profit Target |
Phase 1 | 10% |
Drawdown Rules
Parameter | Value | Type |
Daily Drawdown | 3% | Higher value between Equity and Balance |
Maximum Drawdown | 6% | Trailing (dynamic) |
Daily Drawdown – How is it calculated?
The daily limit is calculated based on the higher value between your equity and balance at the start of the day. Your day's equity (closed positions + floating PnL) must not drop below the maximum daily loss limit.
Example: If you start the day with $1,000, your maximum allowed loss for that day is $30. Your equity cannot drop below $970.
Maximum Trailing Drawdown – How is it calculated?
The maximum drawdown is trailing, meaning it follows the high-water mark (the highest equity ever reached on the account). As your equity grows, the minimum threshold rises with it. Once the equity reaches 6% above the initial balance, the limit locks in place and stops moving.
The trailing maximum drawdown updates in real time. Every time your equity reaches a new high, the allowed minimum equity level is automatically recalculated from that new peak.
Example on a $1,000 account:
Highest Balance/Equity Reached | New Drawdown Limit |
$1,000 (initial) | $940 |
$1,020 | $960 |
$1,040 | $980 |
$1,060 ✅ | $1,000 ← locks here |
Once the equity reaches $1,060, the drawdown limit is fixed at $1,000 and will no longer move up.
Practical Scenarios
Daily Drawdown Scenarios (3% = $30 on a $1,000 account)
Scenario 1: Normal trading day with no open trades at rollover
Balance at rollover: $1,010 (closed a +$10 trade during the day)
Equity at rollover: $1,010
EOD Highest Value: $1,010
👉 Daily loss limit = $30. Next day, your account cannot drop below $980.
Scenario 2: Open trade in profit at rollover
Balance at rollover: $1,000
Open trade: +$20 floating profit
Equity at rollover: $1,020
EOD Highest Value: $1,020 ← equity is higher
👉 Daily loss limit = $30. Next day, your account cannot drop below $990.
Scenario 3: Open trade in loss at rollover
Balance at rollover: $1,000
Open trade: –$15 floating loss
Equity at rollover: $985
EOD Highest Value: $1,000 ← balance is higher
👉 Daily loss limit = $30. Next day, your account cannot drop below $970.
Trailing Maximum Drawdown Scenarios (6% = $60 on a $1,000 account)
Scenario 1: Account grows steadily — trailing limit moves up
Starting with a $1,000 account, the trailing limit begins at $940. As your equity grows, the limit follows:
Highest Equity Reached | Trailing Limit | Room to Lose |
$1,000 (start) | $940 | $60 |
$1,010 | $950 | $60 |
$1,030 | $970 | $60 |
$1,060 ✅ | $1,000 | $60 ← limit locks here |
$1,100 | $1,000 | $100 (more room) |
Scenario 2: Account grows then drops — how close can you get?
Highest equity reached: $1,030 → trailing limit moves to $970
Account then loses $55 → current equity: $975
👉 You are $35 away from a breach. The limit stays at $970 until a new equity high is set.
Scenario 3: Floating profit moves the trailing limit
Balance: $1,000
Open trade with +$40 floating profit → equity: $1,040
Trailing limit moves to $980
⚠️ If this trade then reverses and closes at –$35, your balance drops to $965 — below the $980 trailing limit → account breached.
Rule Summary
Phase 1 Target: 10%
Daily Drawdown: 3% (based on the higher value between equity and balance)
Maximum Drawdown: 6% trailing (follows the high-water mark in real time until balance grows by 6%)
Profit Share from Phase 1: 15%
Did you know?
With BrightFunded you can receive 15% of the profits generated during the evaluation phase, credited to your first funded account once you request your first payout after reaching 10% growth.