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

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

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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.

Read more:

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How to Pass Prop Firm Challenge (2024)


How to Pass 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.

Is it difficult to pass 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.

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 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.

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.

How to pass 10k prop firm challenge? ›

To pass this trading account challenge and secure the position of a prop-funded trader, it is crucial to have an in-depth understanding of the financial markets and the potential to make profitable trades while managing risks effectively.

Which prop firm is the best? ›

The most popular prop trading firms and funded programmes
  • Axi Select.
  • FTMO.
  • The Forex Funder.
  • E8 Markets.
  • True Forex Funds.
  • The 5%ers.
  • Funded Next.

Which is the cheapest prop firm? ›

Best cheap forex prop firms
  • FTMO: evaluations starting at $399.
  • TopStepTrader: Challenges starting at $375.
  • T4tCapital: Flexible evaluation options starting at $299.
  • Funded Trading Plus: Starting at $25.
  • Earn2Trade: $99 Mini challenge.
  • True Trading Group: $49 evaluation with a $25,000 virtual account.
Feb 27, 2024

How many people pass prop challenges? ›

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?

How to pass a prop firm test? ›

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

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.

What is the best prop firm for 5K? ›

Funding Pips leads the pack as one of the best crypto prop trading firms, offering a highly competitive entry price of $32 for a 5K trading capital account. The firm, operating from the United Arab Emirates, utilizes the MetaTrader 5 (MT5) platform and partners with BlackBull Markets.

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!

How many people pass funded accounts? ›

5-15% pass rate

Across account levels, probably only around 5-15% of traders ultimately pass funded account evaluations at firms like FTMO and pass verification phases to trade with investor capital.

Is the FTMO challenge hard? ›

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.

Is it hard to get funded by a prop firm? ›

Becoming a funded trader with a prop firm involves showcasing your trading skills and adherence to risk management during an evaluation process. While the difficulty can vary, it's achievable with consistency, dedication, and a solid trading approach.

How to pass the funded account challenge? ›

You need to have a solid understanding of how to manage risk in order to succeed. This involves setting stop losses, using leverage appropriately, and having a solid understanding of market trends. Keep in mind that the goal is not to make a quick profit, but to sustainably grow your account over time.

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