Trading Objectives
Understand the rules and trade with clarity.
Every evaluation plan at carrotfunding.io is guided by a set of clear, transparent trading objectives designed to assess your consistency, discipline, and ability to manage risk.
These objectives aren’t meant to restrict you — they’re here to build trust and encourage responsible risk-taking that leads to long-term profitability. We want you to understand the rules and focus on developing effective trading strategies within the structured environment these rules create.
As the protocol evolves, we remain committed to working with our trader community to improve or adapt the evaluation rules based on real feedback, including the introduction of new evaluation plans.
All trading objectives and performance metrics are tracked in real-time and fully visible in your Trader Dashboard.
Below is a breakdown of the core trading objectives that apply to each phase of the evaluation. Please note that these may differ depending on the Evaluation Plan you selected.
Trading Period
The Trading Period refers to the time frame in which a trader can meet the objectives of each evaluation phase.
At carrotfunding.io, we do not impose a time limit on this period. Traders have unlimited time to complete each phase, offering maximum flexibility and the ability to trade at their own pace. This approach encourages thoughtful, strategic trading without the pressure of arbitrary deadlines.
Minimum Trading Days
Minimum trading days is one of the core trading objectives in the evaluation process. Each phase requires a minimum number of trading days to be completed.
A trading day is defined as any calendar day in the CET timezone during which the trader opens at least one new position. If a position is held over multiple days without initiating a new trade, only the day of execution will be counted as a valid trading day.
Trading days do not need to be consecutive. Traders are free to trade on their own schedule within the open-ended Trading Period.
A new trading day begins at 00:00:00 CET and ends at 23:59:59 CET.
Maximum Daily Loss
The Maximum Daily Loss is one of the core risk management rules and trading objectives of each evaluation plan. It defines the maximum amount of loss a trader is allowed to incur within a single trading day.
For each phase of the evaluation, the Maximum Daily Loss is calculated as a percentage of the initial account balance (Account Size). This limit applies to both realized and unrealized losses (i.e., equity). If, at any point during a trading day, the account equity falls below the defined threshold, the account will be considered breached and the evaluation will be terminated.
Please note that the Maximum Daily Loss resets at the start of each new trading day.
Daily Loss = Realized PnL + Unrealized PnL
Example for Carrot 2 - Phase Evaluation (Account Size: 100,000 USDC):
The Maximum Daily Loss is set at 5% of the initial balance, which equals 5,000 USDC.
If you close trades during the day with a realized loss of 3,000 USDC, you may only incur an additional 2,000 USDC in unrealized losses that same day. If, at any point, your total daily loss (realized + unrealized) exceeds 5,000 USDC, the account is breached — even if the loss is only temporary and later recovers.
Likewise, if you make a profit of 4,000 USDC during the day, your maximum allowable drawdown from that high is 9,000 USDC (account equity must not fall below 95,000 USDC). The daily loss limit is always calculated from the starting balance of the trading day, not from the intraday peak.
Maximum Loss
The Maximum Loss defines the maximum total loss allowed from the initial account balance over the entire duration of the evaluation phase. It applies to both closed trades and open positions, meaning the account equity must not fall below the defined threshold at any point.
For each evaluation phase, the Maximum Loss is set at a percentage of the initial account balance (Account Size). If the account equity drops below this level, the account will be breached and the evaluation terminated, regardless of whether the loss is realized or floating.
Example for Carrot 2 - Phase Evaluation (Account Size: 100,000.00 USDC):
The Maximum Loss is 10%, which equals 10,000 USDC.
This means your equity must remain above 90,000 USDC throughout the entire duration of the phase. If your equity drops below this level at any moment, the account is closed.
This limit is inclusive of trading fees, and there are no resets. The logic is similar to the Maximum Daily Loss, however, it applies across the entire evaluation, not just a single trading day.
This buffer gives traders room to manage risk and recover from early losses, while providing the protocol with a safeguard to ensure responsible capital allocation.
Profit Target
The Profit Target is a key trading objective in each phase of the evaluation. It defines the amount of net profit that must be generated from closed positions within the Trading Period in order to complete the phase successfully.
The required Profit Target is set as a percentage of the initial account balance (Account Size) and may vary depending on the evaluation type. All open positions must be closed before the Profit Target is considered met and the trader can progress to the next phase
Example for Carrot 2 - Phase Evaluation (Account Size: 100,000.00 USDC):
The profit target must be achieved through realized trades only. Unrealized profits do not count toward the target. Traders may take as much time as needed to reach this objective, as there is no restriction on the Trading Period.
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