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[How-to] [How-to] Passing a prop firm challenge with numbers
Most people fail a challenge by touching the loss limit while rushing the target. Turn the rules into numbers and the urge to force it disappears.
1. Turn the rules into your numbers ($10,000 account, 5% daily, 10% max)
- Daily limit $500 → set your own daily limit at half, $250
- Risk per trade ≈ 1/3 of your daily limit → $80–$100 (0.8–1% of the account)
- Now three losses in a row in one day won't knock you out
2. How many trades to the target?
- Target +8% = $800. With an average win of +$150 (1.5 reward:risk), that's about 6 net winning trades
- At a 50% win rate, roughly 12–15 trades. No need to finish in a few days (especially with no time limit)
3. Behaviors that fail challenges
- Sizing up the day after a loss to win it back
- Entering at news time (often banned, and slippage easily breaks a limit)
- Holding Friday night positions over the weekend (Monday gaps)
- Forgetting the floating loss of open positions when the daily limit is equity-based
4. Using an EA for a challenge
- First check whether the firm allows EAs and whether it bans commercial EAs (same trades as everyone else)
- Martingale and grid EAs are the natural enemies of daily loss limits
- Add a switch that turns the EA off for the day once the daily loss reaches half the limit
5. Before you start
- ☐ When does the daily limit reset (server midnight? your local time?)
- ☐ Is the max limit static or trailing?
- ☐ Banned instruments, banned hours, minimum trading days
- ☐ Payout terms (minimum, frequency, time to first payout)
- ☐ Years in business and payout history (see [Prop firm] in Reviews)
The goal isn't to pass in one go — it's not to fail. As long as you respect the loss limits, the chances keep coming.
