Prop firms
How to pass a prop firm challenge
A prop challenge is not a test of how much you can make. It is a test of whether you can make enough without ever breaking a loss limit. Here is the plan, with the numbers.
Prop firms make money when traders fail, and the rules are written so that one bad day is enough. The good news: the rules are public, the math is simple, and a trader with a reasonable strategy can plan around every limit before placing the first trade.
Every firm writes its rules differently and changes them from time to time. The numbers below use FTMO's 2-Step program as an example, as published on its site on 24 October 2026. Check your own firm's rules before you start.
What the challenge actually tests
A typical two-phase challenge on a $100,000 account looks like this (FTMO 2-Step):
| Rule | Phase 1 | Phase 2 |
|---|---|---|
| Profit target | 10% = $10,000 | 5% = $5,000 |
| Maximum daily loss | 5% = $5,000 | 5% = $5,000 |
| Maximum loss | 10% = $10,000 | 10% = $10,000 |
| Minimum trading days | 4 | 4 |
Look at the first row and the third row together. You have to gain 10% while never falling 10% below the start, and never losing 5% in a single day. Open trades count toward both loss limits. The daily loss limit guide explains exactly how firms measure them.
The math of passing
Express everything in risk units, where 1R is the amount you risk per trade.
At 0.5% per trade, 1R is $500 on a $100,000 account:
- the 10% target is 20R
- the 5% daily limit is 10R
- the 10% maximum loss is 20R
Now suppose your strategy wins half its trades, with winners twice the size of losers. On average each trade earns (0.5 × 2R) − (0.5 × 1R) = 0.5R. Reaching 20R takes about 40 trades. At two trades a day, that is four weeks.
That is slow, and that's fine. With 0.5% risk, a losing streak of ten trades costs about 5%. That's painful but far from the maximum loss, and spread over several days it never comes near the daily limit. At 2% per trade, the same streak costs about 18% and the challenge is over.
A risk plan with numbers
For a $100,000 challenge with a 5% daily limit and a 10% maximum loss:
| Rule | Example | Why |
|---|---|---|
| Risk per trade | 0.5% = $500 | 20 losses before the maximum loss |
| Personal daily limit | 2% = $2,000 | Less than half of the firm's daily limit |
| Trades per day | 3 | Stops overtrading on bad days |
| Stop after | 2 losses in a row | The third trade after two losses is where revenge starts |
| Pause after each trade | 15 minutes | Time to reset before the next decision |
| Personal "review" line | −5% overall | Stop, review the journal, cut risk to 0.25% |
Phase 2 has a smaller target. That is not a reason to risk more. Keep the same plan, and keep it on the funded account too: the loss limits don't go away when you pass.
The mistakes that fail most challenges
- Oversizing near the target. At +8% with a week left, it is tempting to take one big trade to finish. That trade is where many challenges end.
- Revenge after a loss. A quick second trade, a bit bigger, then a third. See revenge trading.
- Forgetting floating losses. A trade carried overnight brings its open loss into the new day and shrinks your daily room before you start.
- Correlated trades. Long EURUSD, GBPUSD and AUDUSD at 0.5% each is really one 1.5% bet on the dollar.
- News spikes. Slippage on high-impact news can push a loss well past the stop. Check the calendar and stay flat when your firm's rules or your plan say so.
- Changing the plan mid-challenge. Raising risk after a bad week turns a slow pass into a fast fail.
A routine for every trading day
Before the session:
- Write down today's numbers: your room left today in dollars, risk per trade in dollars, and today's trade cap.
- Check the time your firm's day resets, in your own time zone.
- Check the news calendar for the next few hours.
After each trade, log it. After two losses in a row, stop for the day. When you hit your personal daily limit, close the platform.
Make the plan impossible to break
Every item in that plan is easy on a calm day and hard on the day it matters. RavandFX turns the plan into rules on your MetaTrader 5 chart:
- the lot size of every trade comes from your risk per trade;
- your daily loss limit, profit target and trade cap are enforced, and reaching the loss limit closes your trades and stops new ones until the next day;
- a pause runs after every trade.
The rules are locked into your licence, so you can't loosen them in the middle of a bad day. Set them below your firm's limits, open every trade through the panel, and practise the whole plan first in the free simulator. More on the prop firm risk manager.
Sources
Common questions
How long does it take to pass a prop firm challenge?
There is no fixed answer. With 0.5% risk per trade and a strategy that earns about half a risk unit per trade on average, a 10% target takes around 40 trades. Many firms no longer set a time limit, so a patient pace costs nothing.
What risk per trade should I use in a prop challenge?
Many traders use 0.25% to 1%, and 0.5% is a common choice. It leaves room for a normal losing streak far away from a 5% daily limit and a 10% maximum loss.
Can I use an EA or a trade manager in a prop challenge?
Most firms allow trade managers and risk tools, but rules on Expert Advisors differ between firms and programs. Read your firm's rules before you start, and ask support if anything is unclear.
What is the most common reason traders fail?
Breaking the daily or maximum loss limit, usually after oversizing to recover a loss or to reach the target faster. The strategy is rarely the problem; the risk on the worst day is.