Do limits reset between phases?

TL;DR

Yes — Phase 1 and Phase 2 are treated as separate phases with their own limits and thresholds anchored to that phase’s start.

How it works

• Two-Phase has two checkpoints (Phase 1, then Phase 2).
• PropXP defines phase-specific risk limits (e.g. “each phase has its own daily max loss”) and the overall max loss is anchored to the starting balance for that phase/account.
• Consistency is also tracked per phase and resets when you pass a phase.

Common gotchas

• Your “new phase” does not inherit your Phase 1 buffer or mistakes. Treat it like a fresh exam.
• Daily limits still reset at 00:00 AM UTC, regardless of what phase you’re in.
• Rules of conduct don’t reset (HFT/hedging/copy restrictions, etc.).

Example

You finish Phase 1 inside the limits and start Phase 2: your Phase 2 daily/max loss thresholds are calculated from the Phase 2 starting point, not from Phase 1 performance.

Related FAQs

• Do open trades carry into phase 2?
• Is the consistency rule measured per phase or across both?
• What is Max Daily Loss (daily drawdown) and how is it calculated?
• What is Max Loss (overall drawdown) and is it static or trailing?