How to Pass a Prop Firm Challenge: A Simple Plan
Table of Contents
A prop firm challenge is a risk test. The firm wants to see that you can make money without losing control. If you plan for that, passing gets much easier.
Know your numbers before the first trade
Write these down in dollars, not percent. Here is a $50,000 Two Step:
| Rule | Percent | In dollars |
|---|---|---|
| Phase 1 target | 8% | $4,000 |
| Phase 2 target | 5% | $2,500 |
| Daily loss limit | 5% | $2,500 |
| Maximum loss | 10% | $5,000 |
Now you know exactly how much room you have.
Risk small on every trade
Risk 0.5% to 1% per trade. On $50,000 that is $250 to $500. Five losses in a row at 0.5% cost $1,250, which is still half of your daily limit. You stay in the game.
Read more in how much to risk per trade.
Set your own daily stop
Do not trade all the way to the firm's limit. Stop for the day at about half of it. On this account that means closing the platform after a $1,250 loss.
You have time, so use it
The Two Step has no time limit. There is no reason to rush. A few good trades a week are enough.
Rushing is what ends accounts. Traders see the target, double their size, and lose in one afternoon what took them two weeks to build.
Count your profitable days
Most models need 3 profitable days. A profitable day closes above 0.5% of the starting balance. On $50,000 that is more than $250. Plan to spread your profit over at least 3 days.
Choose the right challenge
Not every model suits every trader.
- Want the most room? Two Step.
- Want one phase? One Step.
- Want to start small? Pay After You Pass.
Not sure if you are ready? Try the free stress test first.