How to Pass a Prop Firm Challenge: Key Principles
Passing a prop firm challenge isn’t easy. Each firm has its own set of rules, and breaking them can result in penalties according to their policies. But did you know there are proven methods to overcome these challenges?
I successfully passed my prop firm challenges by using backtested strategies, which you can access here. However, even without these strategies, you can still improve your chances of passing by following these essential principles:
1. Think Like a Robot
A robot doesn’t have emotions—it simply follows a set of instructions designed to achieve a goal. When programmed to clean a house, a robot will sweep with a broom, mop with a mop, and follow the most effective methods. Apply the same logic to trading: stick to a strategy that aligns with the current market conditions and avoid emotional decision-making.
2. Control Your Emotions
Trading is a constant battle between buyers and sellers, where both sides aim to profit—but no one wins all the time. Losses are a natural part of the process. When you encounter a loss, don’t chase the market impulsively in an attempt to recover immediately. This often leads to bigger losses. Instead, understand that losses are part of the journey toward becoming a consistently profitable trader.
3. Create a Trading Plan
Many traders, both beginners and experienced, struggle with defining a clear trading plan. But what is a trading plan, and why is it important? A trading plan serves as your personal guide in the markets, outlining your strategy, risk management, and execution rules. There’s no one-size-fits-all template—every trader’s plan is unique. Here’s a screenshot of a simple trading plan that helped me pass my prop firm challenge.
If you’re interested in learning the exact strategies I used to pass my challenges efficiently, you can check them out here.