How I Pass Prop Firm Challenges in 2024
Prop trading has changed a lot in the last couple of years. If you’re an experienced prop trader, you probably noticed how prop trading firms' rules, expectations, and overall environment have shifted since 2022 Strategies that once resulted in passing challenges now need careful tweaking to fit these new structures. I’ve been trading prop firm accounts for two decades, adapting my methods to this evolving landscape, and right now, I’m running a challenge with Hola Prime After years in the game, it’s clear that Hola Prime has emerged as a powerhouse in prop trading firms
In this blog, I will help you understand my strategies for passing these challenges in 2024 This revolves around my journey in the prop firm space so far with my previous prop firms I will also explain what is working for me at the moment concerning risk management, new firm policies, and trade scaling and how I do it. I will also discuss why according to me Hola Prime set the industry’s gold standard
The Evolution of Prop Trading Challenges
In the past, prop trading firms offered high leverage, flexible risk tolerances, and relatively straightforward challenge phases While that made it easier for aspiring traders to build capital quickly, it also attracted high-risk strategies and sometimes reckless trading Prop firms have since shifted their approach, balancing risk and sustainability. For example, today’s prop firms, including Hola Prime, limit large one-time risks, pushing traders to focus on steady and consistent profits
Currently, most reputable firms require traders to use lower leverage, and they monitor trades more closely for signs of “gambling.” This shift requires a careful approach: you can no longer expect to pass a challenge with high-risk, short-term trades. Now, it’s all about consistency, well-planned entries, and calculated risk
Why I Trust Hola Prime as a Prop Trading Powerhouse
As an experienced trader, I am very cautious about where to spend my time and money. After my accounts were shut down by the less stable firms, I went to more reliable firms Hola Prime stands out because of transparent trading conditions and a clear fee structure with an impressive 95% profit split with no additional fees. They also have an innovative one-step challenge and a weekend holding policy for their Prime account that gives flexibility exactly what serious traders require
With Hola Prime, payouts are also refreshingly fast. Instead of waiting for days, you can access profits in as little as one hour, which keeps the momentum going Their commitment to transparency, including daily price reports and real-time live chat support, also ensures I know exactly where I stand in each trade Payouts are also quite quick with Hola Prime. Once the payout is requested, they process it within an hour! This is just so important when you want to stay in the loop of your profits and get quick access to them as well Their transparency in terms of Daily Price Transparency reports is also commendable. Along with this, they ensure real-time live chat support.
The Key Differences Between 2023 and 2024 in Prop Trading Challenges:
The changes in prop trading challenge over the last year are quite huge In 2023, my strategy would be taking higher-risk trades that would risk 3-5% per trade merely so I might pass challenges much quicker Most prop firms are now very strict in monitoring large risks Many trading firms, including FTMO or Hola Prime, have structured the whole risk policy around smaller deals, which makes them advocate the longer survival of accounts.
If you’re wondering why this change, it’s because prop firms have grown smarter, discouraging high-risk plays and promoting a more calculated, disciplined style Risking 1% per trade has become the new norm, with a clear emphasis on a more structured approach. While I used to be more aggressive with challenges, I now utilize a disciplined, gradual scaling method to hit targets faster without exceeding risk limits
My Step-by-Step Strategy for Passing Challenges in 2024
● Risk Management at 1%: With the recent changes, I’ve shifted my approach to risk management, using a 1% risk per trade. This conservative strategy allows room to recover from potential losses and build gradually For me, maintaining consistency and capital preservation is essential, especially since many prop firms no longer favor traders using high lot sizes
● Trade Scaling Strategy: To accelerate profit generation, I use a scaling method Here’s the breakdown: after entering a trade and if the setup is still valid while in drawdown, I add another position. The second entry is only 0.5% or less, so the maximum risk doesn’t exceed 1 5% This strategy works particularly well when aiming for higher targets, like a 1:3 risk-to-reward ratio, doubling returns without doubling the risk
● Using Short-Term Targets: Achieving short-term profit targets keeps me in the momentum of passing the challenge phase For example, my target per trade is usually only 10 pips with a reward-to-risk ratio of 1:3, which will give me a 3% gain if the trade hits the target. This allows me to focus on small wins that add up and compound quickly
● Trading Style Adjustments: I have shunned all-in aggressive trading styles and have gravitated toward day trading and light swing trading in today's prop trading environment to fit into what firms like the taking of lower, planned risk
● Patience and Discipline: The most crucial element I’ve found is patience. Prop firms want to see you pass with discipline, not recklessness As tempting as it may be to push for rapid profits, it’s far more effective to play the long game, achieving profitability over consistent, measured trades.
Adapting to the New Prop Firm Climate
While 2023 allowed for more flexibility, the current prop firm climate prioritizes stable, repeatable trading patterns. This is particularly true for new entrants and prop trading veterans alike who want sustainable results One of my recent trades in GBP/USD, for example, highlights how I approach these trades
After a 10-pip stop loss and a 30-pip target, I entered around a strategic price level. The price drew down by 7 pips initially, at which point I scaled in with the same lot size However, instead of risking further, I maintained my planned stop, preserving my overall account risk at 1.5%.
This scaling approach only works if the trade setup remains valid during the drawdown phase. By minimizing initial risk and carefully doubling down only when necessary, I can turn small advantages into substantial progress toward my profit target
Hola Prime: The Hero of Prop Firms in 2024
Unlike many other prop firms, Hola Prime’s one-step challenge simplifies the process No need to complete multi-phase evaluations; just meet the target, and you’re in Hola Prime also excels with its industry-leading 95% profit split at zero cost, and for U S traders, it’s a significant advantage that Hola Prime accepts clients from the States without hesitation. These are benefits that set them apart, especially for aspiring traders who need a prop trading firm that prioritizes their success
Tips for Aspiring Traders
For those looking to pass their first prop firm challenge, here are a few key takeaways from my experience:
● Focus on Risk Management: Start with 1% risk per trade and increase gradually Do not be tempted to rush towards targets by taking larger than sustainable risks
● Select the Right Prop Firm: Look for firms like Hola Prime that have favorable conditions, quick payout processing, and transparent policies.
● Trade with Consistency: Passing challenges isn’t about winning big every trade; it’s about steady progress
● Learn from Setbacks: Use every setback as a learning opportunity. In my experience, each loss refined my strategy and honed my patience
Concluding Thoughts
Prop trading has evolved, but with the right mindset, it remains a lucrative pathway To pass prop firm challenges in 2024, you’ll need discipline, a well-rounded approach to risk, and a commitment to smart scaling tactics. With firms like Hola Prime leading the way in transparency and fair profit-sharing, prop trading is more accessible than ever to serious traders
Whether you’re new to prop trading or an experienced trader, staying up-to-date on best practices is key. By adopting a cautious, adaptive trading style and choosing firms that put traders first, you can continue building your success in this industry.