How to Pass the Forex Prop Firm Challenge

Passing a forex prop firm challenge is no rocket science, and it is neither a cake walk. If you do simple things in the right way, you can get through. Let’s discuss what all you have to take into consideration and do right to pass a prop firm challenge.

1. Choose the Right Prop Firm: 

To pass the prop firm challenge, you first have to choose the right prop firm. If you go ahead with a prop firm whose challenge conditions are super hard even for the top traders, there are very less chances that you will be able to pass the challenge. Hence, choose a firm that has trader-friendly rules. A 10% profit target and a 8% to 10% maximum loss limit can be considered as reasonable.

2. Choose the Right Challenge: 

There are different types of challenges offered by prop firms, like 1-step challenge and 2-step challenge. You should choose a challenge that aligns well with your experience. In 2-step challenges, you have to meet the profit requirements twice, though the profit requirement in the second phase is usually less. If you are a consistent performer, then you can go ahead with the 2-step challenge, else 1-step challenge can be the best bet for you.

3. Get Familiar with the Challenge Rules: 

As much as it is important to choose the right challenge, it is equally important to get familiar with the challenge rules. You should be absolutely aware of what is allowed and what is not. In some challenges, news trading, weekend holding, and other things are allowed, and in some, they are not. If you end up violating the terms of the challenge, you may end up getting your account terminated.

4. Get Familiar with Trading Platform: 

Different prop firms offer different trading platforms, and it is a must to get yourself familiar with the trading platform before you start your challenge; otherwise, you may end up missing on trades that need timely execution. If you are comfortable and familiar with the trading platform, you can take advantage of advanced order types.

5. Develop a Trading Strategy: 

The most important step and key to pass prop firm challenge. While creating your trading strategy, you have to take into consideration the challenge rules, the profit you need to make, and the daily and maximum loss limits. You also need to consider your risk-taking ability and set targets accordingly. At last, it is not only about creating the trading strategy but sticking to it. If you end up doing emotional trading when some trades go adverse, your trading strategy will not work, no matter how effective it is. Hence, the best way to pass the prop firm challenge is to create a tested strategy and stick to it.

6. Stay Disciplined: 

As we talked above, as much as it is important to do the right things, it is equally important not to do the wrong things, like emotional trading, overtrading, and more. In the world of trading, discipline is non-negotiable, and it can either make or break your trading career. 

7. Review and Adjust: 

The last step is to evaluate your strategy and see what is working and what’s not. This should be a part of your strategy to set aside a time to review your strategy and its performance. If there is a need, adjust your strategy and align with your goals.