How to Pass Prop Firm Challenge: 4 Tips for Success (2024)

As a professional trader with over 10 years of experience, I have passed many Prop firm challenges and have developed a set of rules that I always follow to ensure my success. In this post, I’ll share with you these rules, so you can also pass Prop firm challenges and become a successful trader.

How to Pass Prop Firm Challenge: Tip #1: Follow Your Strategy 100%

The first and most important rule is to follow your strategy 100%. Whether you’re trading manually or with Robots, you must always follow the rules of the strategy you’ve selected. Even if you strongly believe that the market is moving in a particular direction, if your strategy says it’s time to buy, then buy. Following your strategy will help you avoid making emotional and fear-based decisions that can lead to losses.

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Tip #2: Start with a small challenge.

Many new traders start with high-cost challenges because they want to get funded with hundreds of thousands of dollars immediately. They hope to quit their day job and spend just a few hours trading to make a living from trading. However, Prop firm challenges aim to fund the best traders, and although their trading objectives may sound easy, they are not.

Recent research shows that between 80 to 99% of traders fail in trading. With the Prop Firm challenges, it’s not just about failing or winning. You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded.

It’s best to invest in a few challenges. Instead of purchasing a 200K FTMO Challenge, take five smaller 10K challenges. The smaller challenges would cost you less and you will have plenty of time to prove not to the FTMO but to yourself that you are ready for a bigger challenge. You can use the money earned from getting funded with a 10K challenge to pay for a bigger challenge.

The ultimate strategy here is to buy the 10K challenge just once, pass the challenge, pass the verification and get funded. The first rewards you withdraw, you can use to pay for a 200k Challenge. If this doesn’t happen on your first attempt, you can take another shot because you use just a small amount from the money you were about to lose on the 200k challenge.

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How to Pass Prop Firm Challenge: Tip #3: Don’t be in a hurry

Do not rush. Your goal shouldn’t be to try the expensive challenges as quickly as possible but rather to successfully complete the smaller challenges and prepare yourself properly. Most people fail because they rush through it.

Don’t be fooled by YouTubers who claim to pass FTMO challenges quickly. Passing FTMO challenges is not an easy task and it takes time. Take your time and do not rush through it. You have a whole month to complete it, which is usually more than 20 trading days. If you do not reach the 10% Target but you fulfill all the training objectives, you can usually ask for a free retake. The various influencers and YouTube content creators are just that. Content creators. Their goal is to get as many views as possible. They are not necessarily successful traders.

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Tip #4: The Challenge is just the start

Passing the challenge is just the beginning. You will still have to go through the verification process and get funded before you can start earning real money. That’s why you need a profitable trading strategy that will generate consistent results over time.

How to Pass Prop Firm Challenge: 4 Tips for Success (4)

Don’t let a few lucky trades make you overconfident. Instead, use the challenge as an opportunity to evaluate your risk and trading objectives, and work on improving and mastering your trading strategy. This will help you generate profits continuously, not just with a few lucky trades.

If you fail at first, don’t worry. You can always learn from your trading mistakes and make the necessary changes to become a better trader. Starting with a demo account or free trial can be a great way to practice without risking your own money.

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If you don’t have a trading strategy at all, you might want to check out the FTMO challenge Master Class. The ready-to-use strategy has helped many traders pass the challenge.

How to Pass Prop Firm Challenge: Final Thoughts

Remember, becoming a successful trader takes time and effort. But with the right mindset and strategy, you can achieve your goals. Good luck, and have a wonderful day!

How to Pass Prop Firm Challenge: 4 Tips for Success (2024)

FAQs

How to win prop firm competition? ›

Start with a Small Challenge

If you're new to prop trading challenges, consider starting with a smaller one. This allows you to gain experience and confidence without risking a significant amount of capital.

What are the odds of passing the prop firm challenge? ›

With the Prop Firm challenges, it's not just about failing or winning. You must be profitable and fulfill certain trading objectives which makes it even harder. Less than 1% of traders who attempt the challenge pass and get funded.

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 long should it take to pass a prop firm challenge? ›

In conclusion, it can take around 4-5 months to pass a prop firm trading challenge and become a funded trader. However, it can take much longer than that to become a profitable trader beforehand – which is a necessity.

What is the success rate of prop firm evaluation? ›

It is estimated that only 4% of Forex traders succeed with prop firm challenges, and only 1% of traders can generate profits consistently without violating any rules.

Are prop firm challenges worth it? ›

Benefits of Free Prop Firm Challenges

It's a fantastic way to gain valuable experience in a realistic trading environment before risking your own capital. Fast Track to Funded Account: Acing a free challenge can unlock the door to a funded prop firm account.

How many people pass funded accounts? ›

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 is the maximum loss in prop firm? ›

Check Your Prop Firm's Rules

For example, our funding accounts allow you a 5% total loss limit, before you breach the rules. This is fairly typical so whatever prop firm you're working with will have a maximum loss limit of between 2% and 10%. Once you are clear on the expectations, you can start crunching the numbers!

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. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.

How to pass prop firm evaluation? ›

By perfecting your trading plan, practicing consistently, mastering risk management, developing emotional discipline, keeping detailed records, and learning from your mistakes, you can significantly enhance your chances of success in these assessments.

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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