Challenge Account:

• Purpose: It's an evaluation account where traders have the opportunity to demonstrate their skills.
• Operational Rules: Has more flexible rules, allowing greater operational freedom. This means the restrictions on how you can trade are less rigorous, giving more room for experimentation and learning.
• Drawdown: The drawdown is calculated at the end of the day (EOD), adjusted only at daily closure to avoid negatively affecting the account due to intraday fluctuations.

Master Funded Account or Master Account:

• Purpose: After approval in the evaluation phase, the Master account is activated, allowing withdrawals of the profits earned.
• Operational Rules: The rules are stricter, reflecting the trust placed in the trader. This rigor aims to ensure sustainability and safety for both the trader and the company.
• Drawdown: Uses a real-time trailing drawdown system. Once you reach a profit that covers the initial drawdown plus US$100, the drawdown becomes static, fixing the loss limit. This provides more precise control over the risks taken.

In summary, the main difference lies in the nature of the accounts: the Challenge Account serves as a test platform with fewer restrictions, while the Master Account, being a production account, imposes stricter rules to protect both the trader's capital and Ylos Trading's financial performance.