How to Pass a Prop Firm Challenge

A practical approach focused on rules, risk control, and consistency. Passing is less about finding perfect entries and more about not breaking drawdown limits.

1. Read the Rules First

• Daily loss limit (usually 3–5%)
• Maximum overall loss (usually 8–10%)
• Profit target and minimum trading days
• News trading restrictions
• Third-party signal / copy trading policy

See the comparison on our Prop Firm hub.

2. Position Sizing on Challenge Accounts

Challenge accounts are not the place to risk 2%. Use 0.25–0.5% risk per trade until you are consistently profitable and well inside the drawdown limits.

Calculate size with the Position Size Calculator.

3. Daily Drawdown Discipline

• Set a personal daily stop (e.g., 2%) before the firm’s official limit
• If you hit it, close the platform for the day
• Never increase size after a loss to “make it back”

4. Discord Signals and Prop Accounts

5. After Passing

The funded phase has the same risk rules. Continue the same position sizing. Do not suddenly increase risk because the account is “not your money.”