What is a Prop Firm Challenge?
A prop firm challenge is a test that traders must complete before receiving virtual funding or profits from a prop firm like The Talented Trader. These challenges typically have one, two, or three phases of evaluation before a trader can receive their funded forex accounts and withdraw profits based on the profit split of the prop firm. For instance, The Talented Trader has 3 different prop firm models each with its profit split agreement with the trader and the firm once funded. The evaluation phase is guided by strict rules in relation to the account size you purchase. The Daily Drawdown ensures you don't lose more than a fixed percentage of your equity in a single day. The Maximum drawdown ensures you don't fail your evaluation phase by losing a fixed percentage of the overall account size over time. If you can successfully hit those profit targets without breaching these rules plus other trading rules for each firm then trading a funded account should be an easy challenge for you!How to Pass Prop Firm Challenge
Risk Management is the lifeblood of this vessel. You need to master this and master your impulse control when trading. Set predetermined account risk parameters per trade. If you’re a novice trade risk only 0.5% of your account size per trade. If you’re a seasoned trader, risk anywhere from 1-2% per trade. Most importantly stay consistent in these risk parameters from your evaluation phase (1-step, 2-step, 3-step or instant funding) to your funded phases. This is key to pass prop firm challenge with TTT.
Another key observation based on statistics are traders never often hold the trade they executed to Take Profit or Stop Loss. Statistically, you will either sell for bigger losses or take smaller profits. Here’s another statistic for you, most funded traders who successfully pass prop firm accounts always let their traders either smash Take Profit (TP) or Stop Loss (SL). Is it not Ironic how simple it is to pass your prop firm account regardless of your trading strategy?
This goes without saying, once you perfect the art of risk management, then you will need to practise your trading strategy. You should know what time frames you are comfortable trading: Weekly, Daily, 4 Hourly for your swing traders, or 1H, 15m, 1m for your day traders plus when to enter a trade. This article will not teach you trading strategies but has now given you a glimpse of some statistics of most forex funded traders when it boils down to risk management. If you're patient, have a solid trading plan, know the rules inside and out, and manage your risks well, you can overcome prop firm challenges. Hopefully, with this guide, you know how to pass prop firm challenges with The Talented Trader. Remember, emotions can derail your success, leading to poor risk management and blown trading accounts. Stay disciplined, and you'll increase your chances of becoming a funded trader with The Talented Trader. Finally, if you're patient, have a solid trading plan, know the rules inside and out, and are good at managing your risks, you should be able to overcome prop firm challenges. Hopefully, you understand How To Pass Prop Firm Account challenges. Nevertheless, traders frequently succumb to their emotions to expedite their success, resulting in the abandonment of risk management and the catastrophic blowing of their trading accounts. Stay cool, follow the plan and success will follow!
What are you waiting for? 10x your capital and 10x your profits with The Talented Trader! Gain access to capital up to $2 Million. Register your email ID on: https://clientzone.thetalentedtraders.com/en/user/login Follow us on all our social handles to get up to date information on free challenge account give aways, promo codes and much more: Frequently Asked Questions (FAQs):
How to pass Prop firm Challenges?
Master the art of risk management, then practice your trading strategy. It’s that simple, either let your trades hit Stop Loss or Smash Take Profit.
What should you risk per trade?
Risk only between 0.5% account size per trade if you are a beginner and if you are a professional risk between 1% to 2% per account size per trade.
What trading strategy do most funded traders have?
There is no clear answer to this question nor should you be looking to find an answer for this. Just study Price Action for the instrument you trade and observe the markets before you come to your own conclusion on how Market Makers affect the volatility in Price Action.
