How do you pass a prop firm challenge?
Why do most traders fail? Not because of bad strategies, but because they break rules. Manage risk first and the target usually follows.
Do you know the rules?
Before trading, write down the target, daily limit, maximum loss, drawdown type, reset time and any banned styles. Where? Our program pages list them all.
How much should you risk?
0.5–1% per trade. At 1%, you can lose several trades in a row and still be far from the limits.
When should you stop for the day?
Once you've lost half your daily limit. It's the simplest way to never hit it.
Why not hurry?
Most challenges have no deadline. Trading bigger to finish faster is the classic way to fail. See firms with no time limit.
What about the news?
If news trading is restricted, check the economic calendar every morning and stay out around major releases. More in our news trading guide.
Is there a consistency rule?
If so, keep your daily results even so one big day doesn't delay your payout. Our consistency rule guide explains how.
Should you change your style?
No. Trade the strategy you'd use with your own money; a challenge isn't the place to experiment.
Do you review your trades?
Do it every week. Did you follow your plan? Small fixes add up.
Got questions?
What percentage of traders pass?
Firms rarely publish this, but most estimates are well under one in five.
Should I use maximum leverage?
No. Leverage doesn't change your loss limits; it just makes them easier to hit.