How to pass a prop firm challenge: a practical guide
Most challenges are lost to rule breaches, not bad strategies. Manage risk first and the target tends to take care of itself.
Know the rules cold
Before your first trade, write down the target, daily limit, maximum loss, drawdown type, reset time and any banned styles. Our programme pages list them.
Size your risk
Risk 0.5–1% per trade. At 1% you can take several losses in a row and still be far from the limits.
Set a daily stop
Stop trading for the day after losing half your daily limit. It's the simplest way to never hit it.
Don't chase the target
There's usually no time limit. Taking bigger trades to finish faster is the classic way to fail. See firms with no time limit.
Respect the news
If your firm restricts news trading, check the calendar every morning and close or avoid trades around major releases.
Mind the consistency rule
If there is one, keep your daily results even so a big day doesn't delay a payout.
Trade your normal style
Use the same strategy you'd trade with your own money. A challenge isn't the place to try something new.
Review every week
Look at your trades weekly: did you follow your plan? Small fixes add up.
Frequently asked questions
What percentage of traders pass?
Firms rarely publish this, but most estimates put it well under one in five.
Should I use the maximum leverage?
No. Leverage doesn't change your loss limits; it just makes it easier to hit them.