How to Pass Prop Firm Challenge (2024)

Are you looking to become a successful trader and join a prop firm? If so, then you may have heard about the prop firm challenge. This is a popular way for traders to prove their skills and potentially secure funding from a prop firm. However, passing this challenge can be quite daunting and requires a lot of hard work and dedication. In this blog post, we will discuss everything you need to know about the prop firm challenge and how you can successfully pass it.

What is Prop Firm Challenge?

A prop firm challenge is a trading evaluation process that is used by prop firms to assess the skills and abilities of potential traders. It involves completing a set of tasks or meeting specific criteria within a given time frame. The purpose of this challenge is to identify traders who have the potential to become profitable and successful in the long run.

Prop firms are companies that provide traders with capital to trade in the financial markets. They offer training, resources, and support to help traders improve their skills and become profitable. However, before a trader can receive funding from a prop firm, they must first pass the prop firm challenge.

Prop Firm Challenge Rules

Each prop firm may have its own set of rules and requirements for their challenge. However, there are some common rules that most prop firms follow. These include:

  • Minimum account size: Most prop firms require traders to start with a small account size, usually around $5000.
  • Timeframe: Traders are given a specific time frame to complete the challenge, usually between 30 to 60 days.
  • Profit target: Traders must meet a predetermined profit target within the given time frame to pass the challenge.
  • Risk management: Traders must adhere to strict risk management rules and not exceed a certain percentage of their account on any given trade.
  • Trading style: Some prop firms may have specific trading styles or strategies that they want traders to follow during the challenge.

It is essential to thoroughly read and understand the rules of the prop firm challenge before starting. This will help you prepare and increase your chances of success.

How to Pass Prop Firm Challenge

Passing a prop firm challenge requires a combination of skills, knowledge, and discipline. Here are some tips on how you can successfully pass the challenge and secure funding from a prop firm.

Follow Your Strategy 100%

One of the most crucial aspects of passing a prop firm challenge is having a well-defined trading strategy. A trading strategy is a set of rules that guide your decision-making process in the market. It includes entry and exit criteria, risk management rules, and trade management techniques.

Before starting the challenge, it is essential to have a solid trading strategy that you have tested and are comfortable with. Once you start the challenge, stick to your strategy 100%. Do not deviate from it or make impulsive decisions based on emotions. Remember, the prop firm is evaluating your ability to follow a plan and execute trades consistently.

Start with a Small Challenge

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It may be tempting to go for a larger challenge to potentially receive more significant funding from the prop firm. However, it is recommended to start with a smaller challenge, especially if you are a beginner trader. This will allow you to get familiar with the rules and requirements of the challenge and gain confidence in your trading abilities.

Starting with a small challenge also gives you the opportunity to learn from any mistakes without risking a large amount of capital. Once you have successfully passed a smaller challenge, you can then move on to a larger one and potentially receive more significant funding.

Don’t be in a Hurry

The prop firm challenge is not a race, and it is essential to take your time and not rush through it. Many traders fail the challenge because they try to meet the profit target too quickly and end up taking unnecessary risks. Remember, the prop firm is looking for traders who can consistently make profits over an extended period.

Take your time to analyze the market and only take trades that align with your strategy. Do not force trades or try to make up for any losses quickly. It is better to have a slow and steady approach rather than taking unnecessary risks and potentially failing the challenge.

Best Forex Prop Firm Trading Strategy for Beginners

As a beginner trader, it may be challenging to come up with a trading strategy that is suitable for the prop firm challenge. Here is a simple yet effective trading strategy that you can use to pass the challenge and potentially secure funding from a prop firm.

Strategy: Trend Following with Risk Management

This strategy involves following the trend in the market and using strict risk management rules to limit losses. Here are the steps to follow:

  • Identify the trend: Use technical analysis tools such as moving averages, trend lines, or indicators to identify the direction of the trend.
  • Entry: Wait for a pullback or retracement in the trend and enter a trade in the direction of the trend.
  • Stop loss: Place a stop loss below the recent swing low (for long trades) or above the recent swing high (for short trades).
  • Take profit: Set a profit target based on a risk-reward ratio of at least 1:2.
  • Risk management: Only risk a small percentage of your account (e.g., 1%) on each trade.

By following this simple strategy, you can take advantage of the market trends while limiting your risk. It is essential to backtest and practice this strategy before starting the prop firm challenge to ensure its effectiveness.


Passing a prop firm challenge requires a combination of skills, knowledge, and discipline. It is crucial to have a well-defined trading strategy, stick to the rules of the challenge, and not rush through it. Starting with a smaller challenge and using a simple yet effective trading strategy can increase your chances of success.

Remember, the prop firm challenge is not just about passing a test; it is an opportunity to prove your skills and potentially receive funding from a prop firm. So, take your time, be patient, and follow these tips to successfully pass the prop firm challenge and kickstart your trading career.

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How to Pass Prop Firm Challenge (2024)


How to pass a prop firm challenge fast? ›

Tips for Passing a Prop Firm Trading Challenge
  1. Understand the Rules of Engagement: ...
  2. Master Your Trading Strategy: ...
  3. Risk Management is Non-Negotiable: ...
  4. Leverage Your Analytical Skills: ...
  5. Stay Disciplined and Patient: ...
  6. Continuous Learning is the Key: ...
  7. Embrace Feedback and Adapt: ...
  8. Simulate Real Trading Conditions:
Feb 5, 2024

How many people fail prop firm challenges? ›

Around 10% pass

According to FTMO statistics, only about 10% of traders are able to pass the funded account challenge at any account level. This means approximately 90% of aspiring funded traders fail the evaluation and are unable to gain access to the firm's capital.

How to beat the FTMo challenge? ›

How to Pass the FTMO Challenge: Risk Reward Ratio 1:3. The first step in this system is to use a risk-reward ratio of 1:3. This means that for every trade you make, you should risk 1% of your account and target 3% of your account. For example, if you have a $10,000 account, you should risk $100 and target $300.

Is it easy to pass a funded account? ›

With the right preparation, realistic goals, risk management, and focus, you can successfully navigate this test and secure your place in the trading community. Keep in mind that success takes time, and don't be discouraged if you don't hit your goals right away.

How to pass prop firm evaluation? ›

Mastering Risk Management

Effective risk management is vital in trading evaluations. Many successful traders stress the need to protect your capital by adhering to risk limits and using stop-loss orders. Risk management demonstrates your responsibility as a trader and helps limit potential losses.

Are prop firm challenges worth it? ›

Participating in a Prop Firm Challenge can be a stepping stone to a successful trading career. The benefits, including improved skills, access to capital, and networking opportunities, make these challenges an attractive option for traders looking to advance in the industry.

What is the pass rate of prop firms? ›

According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?

What happens if you lose a prop firm challenge? ›

When you are trading with a prop firm, your losses are usually limited to the foregone risk of your challenge/account fee. You are generally not liable for the prop firm's lost funds.

Is FTMO hard to pass? ›

There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place.

What is the biggest FTMO payout? ›

Dariusz from the USA exceeded everyone's expectations and made his dreams come true. As our FTMO Trader with a maximum allocation, he beat the previous record payout of $500,180 thanks to his profit of $1,206,225, the biggest payout in the industry!

Can I pass FTMO challenge in one day? ›

The minimum time to complete an FTMO Challenge is 4 trading days.

How to easily pass prop firm challenge? ›

Follow Your Strategy 100%

One of the most crucial aspects of passing a prop firm challenge is having a well-defined trading strategy. A trading strategy is a set of rules that guide your decision-making process in the market. It includes entry and exit criteria, risk management rules, and trade management techniques.

How can I increase my chances of winning a competition? ›

Habits are important – get yourself into a regular comping routine. Use Google calendar notifications, phone alarms or even Post-it notes to remind yourself to listen out for radio comps, do daily instant wins, weekly Google searches or monthly checks of your favourite websites.

How long does it take to pass a prop firm challenge? ›

For most funded trading accounts, it takes around four to five months to pass the screening process or prop firm trading challenge, before funding will be allocated to a trader.

How to pass a 5K funded challenge? ›

By combining technical and fundamental analysis, maintaining a strong psychological and risk management approach, and staying adaptable, you can significantly enhance your chances of success in the 5K Funded Challenge. The final section will discuss common pitfalls in trading and how to avoid them.

How to pass the funded next challenge? ›

Traders are required to complete several trading objectives to pass the funding challenge for example, maintaining the drawdown limit, completing the profit target etc. If one of them is violated during the assessment, trader cannot proceed further and they lose their account.

What is the best strategy for a prop firm? ›

What are the best prop firm strategies? The best prop trading strategies include News Trading, Breakout Trading, Scalping, Position Trading, and Swing Trading.

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