Passing a prop firm challenge isn’t just about luck—it requires discipline, strategy, and smart risk management. Here are proven strategies to help you meet the strict profit and risk requirements and earn your funded account.
1. Understand the Rules Thoroughly
Every prop firm has its own set of rules on:
- Profit targets
- Maximum daily and overall losses
- Minimum trading days
- Allowed trading instruments and styles
Knowing these inside out prevents accidental rule violations, which can disqualify you.
2. Trade with Low Risk Per Trade
Keep your risk per trade small—typically 0.5% to 1% of your account size. This protects your capital and allows you to survive losing streaks.
3. Focus on Consistency, Not Big Wins
Prop challenges reward steady profits, not high-risk gambles. Aim for many small winning trades instead of trying to hit the profit target with a few big trades.
4. Use a Simple, Proven Trading Strategy
Complex strategies are harder to follow and can lead to mistakes under pressure. Stick to what you know works and keep your approach straightforward.
5. Manage Your Emotions
Stay calm and avoid revenge trading after losses. Emotional decisions often break risk rules and hurt your chances.
6. Keep Track of Your Trades
Maintain a trading journal to review your performance, identify mistakes, and adjust your approach as needed.