How to Pass Any Prop Firm Challenge in 2024
Getting funded by a prop firm is one of the smartest moves any ambitious trader can make today to upgrade their trading career Thanks to the many excellent opportunities offered by so many prop firms these days, passing a prop firm challenge is now the gateway to accessing funds and realizing your trading potential This article includes all the know-how, tips, and strategies that will guide you in passing these challenges and obtaining a funded account from top prop firms.
The Difference Between Trading for a Prop Firm and Trading Your Own Account
Prop trading isn’t just about trading with larger funds it requires a mindset shift. When you trade for a prop firm, you're accountable to strict guidelines While trading your account gives you flexibility, proprietary trading for a firm comes with rules to ensure you don’t take excessive risks. Most prop trading firms will enforce specific limits, such as daily drawdowns of 5% or a maximum of 10% for the challenge period These rules exist to test the trader's skills and ultimately help them grow into disciplined traders
Unlike trading your funds, prop trading firms allow you to focus solely on your strategy without worrying about capital restraints This way, firms can gauge your skills and consistency, ensuring you’re a trader who not only knows how to turn a profit but can also handle risk responsibly.
Hack #1: Trade Smaller to Avoid Hitting Your Drawdown Limit
The adrenaline rush of trading is undeniable, but when it comes to prop firm challenges, slow and steady truly wins the race One of the biggest pitfalls new prop traders face is trying to pass the challenge quickly. That pressure often leads to over-leveraging and blowing accounts When you’re aiming for a long-term trading program and a consistent profit-sharing structure, it’s crucial to stay in the game as long as possible
One tip I give every aspiring trader is to trade smaller. It might seem counterintuitive, especially if you’ve had success trading with larger sizes on your account But trading smaller with each position lowers your risk of hitting stop-losses too quickly Not only does it keep you from reaching your drawdown limit, but it also builds habits that will serve you well once you’re funded.
Hack #2: Use Higher Time Frames to Avoid Market Noise
In today’s fast-paced trading platforms, it’s easy to get caught up in minute-to-minute fluctuations, especially with the advanced tools available on platforms like MT5 or cTrader But one of the best-kept secrets to acing a prop firm challenge is sticking to higher time frames. Trading on the 1-hour or 4-hour chart can do wonders for cutting out market noise and staying focused on high-quality setups
Source: wwwctradercom
Traders who focus on lower time frames may experience some success, but in prop trading, this strategy usually creates more losses over time Experienced traders know that sticking to higher time frames increases the probability of profitable trades This level of discipline is precisely what prop trading firms want to see in a prop trader. Hola Prime offers one of the more flexible environments, allowing you to hold positions over weekends on their Prime plans, which gives traders the freedom to focus on higher time frames and larger trends without having to close positions prematurely
Hack #3: Practice Discipline Through Mindfulness Techniques
As any experienced trader can attest, trading success boils down much more to discipline than good technical skills Mindfulness practices are also on the rise among professional traders whose days are filled with stress and pressure Now imagine having an extended losing streak. One bad decision means missing the chance to get a funded account. Emotional control is what will get you through those moments and keep your head in the game
One technique I’ve found helpful and that’s widely recommended in high-stress fields is “box breathing ” It’s a simple, effective practice that helps calm the nervous system and keep your decision-making sharp:
1. Inhale for four seconds
2 Hold for four seconds
3 Exhale for four seconds
4. Hold on an empty breath for four seconds
It helps you remain level-headed during each trade and avoids emotional decisions that might lead to risk-taking behavior Some firms even provide facilities and strategies for mental preparation after training, understanding that a balanced mindset is essential for securing sustainable profits
What to Expect After Passing the Prop Firm Challenge
Passing a prop firm challenge is just the beginning of your prop trading journey For example, with firms like Hola Prime offering one-step and two-step challenges, weekend position holding on Prime plans, and the fastest payouts, the journey becomes even more rewarding If you pass, you’ll move on to a funded account, where profit sharing often begins. For example, Hola Prime offers traders up to 95% profit share without additional fees a strong incentive for disciplined, successful traders
Some Firms may have specific profit-split percentages based on performance metrics Some firms, like FTMO or Funding Pips, enforce waiting periods of 1-3 working days for profit withdrawals FTMO has a minimum 14-T period, while Hola Prime offers one week to request the first payout, and for Funding Pips it depends on the profit-split chosen These options allow you to pick a firm that aligns with your preferences
Key Metrics to Watch: Leverage, Payout Times, and More
Prop firms vary widely, not only in profit share but also in factors like leverage, payout speed, and fee structure For example, Hola Prime offers 100:1 leverage on their Pro account, giving traders more flexibility in managing their trades. Some firms, such as Funded Next, have specific leverage limits for their 1-step stellar challenge, for the other accounts, it is 100:1 Evaluating a firm’s leverage options will give you insight into whether their trading platform fits your trading style and goals
Additionally, consider fee structures While some companies like Hola Prime have no extra fees to use cTrader, Funded Next charges $10 for the same feature It is tiny stuff that adds up over time and may affect your profitability. If a prop trading firm doesn't reimburse fees or has no live chat support, the trader is left high and dry. These extra features may seem too minor, but then they can make all the difference when you are managing a funded account and looking to have a long-term relationship with a firm
Summing Up: The Road to Success in Prop Trading
In the world of proprietary trading, passing a prop firm challenge is your ticket to leveraging an institutional-grade funded account without risking your funds But passing isn’t just about knowing your technicals; it’s about proving you have what it takes to be an experienced trader It’s about discipline, strategic planning, and a commitment to growth
Armed with these hacks trading smaller, using higher time frames, and practicing discipline through mindfulness you’re well-prepared to take on even the strictest prop trading evaluation process Remember, it’s not just about picking the best prop trading firms It’s about finding a firm that suits your style, with its user-friendly conditions, withdrawal timelines, and responsive support
If you’re ready to tackle the prop trading challenge, look for a firm that not only offers favorable conditions but also shares your commitment to growth The right firm will offer a trading program that recognizes and rewards disciplined trading, setting you on a path toward sustainable success in the high-stakes world of prop trading
Embrace the challenge, make the most of these strategies, and, most importantly, remember that consistency and discipline are your best assets.
