How We Pass Prop Firm Challenges
When it comes to passing prop firm challenges, you must first understand the rules for each evaluation to help you design a strategy accordingly.
Some prop firms have rules regarding daily drawdown limit, and types of strategies that are prohibited. For example some prop firms allow news trading, holding over the weekends, hedging, etc.. while others don’t.
Once you understand the rules in place for each evaluation, you can then start designing a strategy for passing your challenge and getting you funded.
Let’s use an example of a prop firm known as FTMO. They allow a daily drawdown limit of 5% with a profit target of 10%. They also allow you to trade through the news and hold over the weekends. Furthermore, they don’t put a time limit on how long it takes for you to pass the challenge. This means you can achieve small profits, day by day to eventually reach you profit target goal while keeping risk at a minimal.
By knowing the rules, it then just comes down to how fast you want to pass the challenge. For many traders, they seek to pass their challenges fast which ultimately leads them to failure. Trading isn’t about fast, but rather waiting for low risk setups and only trading when the odds are in your favor.
The reason why passing prop firm challenges is such an obstacle for most traders, is because of the fact they let their emotions and fantasies control their decision making process. A lot of traders that get involved in trading or seek to pass challenges have the idea of getting rich quick. These ideas or fantasies, lead them to many mistakes in passing their prop firm challenge.
If you want to pass prop firm challenges and get funded, you need to have the right mindset. You don’t get involved in trading to get your money right. You already need to have your money right to begin with. Those that seek to get rich quick from passing challenges and receiving high payouts, tend to either fail or have many failed challenges before they finally see the realization of a decent size payout.
Based on my experience, I think the best way to pass prop firm challenges is to design a strategy based on the rules permitted and then have that strategy programmed into an automated trading system known as a trading algorithm. These trading algorithms can be installed into trading platforms such as MetaTrader 4 or MetaTrader 5.
By having a fully automated strategy that you designed specifically for passing the challenge, helps to increase your odds of success.
The way we approach passing prop firm challenges is by using our own proprietary trading algos that have been back-tested an optimized and have a proven track record of success.
In conclusion, if you want to pass your prop firm challenge, consider getting your strategy based on the rules of the evaluation programmed into an automated trading bot. This will not only free you from the stress the of the market but also significantly increase your odds of success in passing your prop firm challenge.
