Topic
Prop Trading
Trading a funded account means trading under a rule book: drawdown floors, daily loss limits and consistency rules, each worked through on a hypothetical account.
Every prop firm writes its drawdown, daily loss and consistency rules a little differently. The differences decide who passes. Work each example on its hypothetical rule set, then find the matching line in your own firm's terms before you rely on the result.
The consistency calculator shows whether your best day breaks a percentage rule and how much total profit you would need for it to pass.
The case study follows two traders through the same hypothetical evaluation, one who hits the target early with a single large day and one who gets there slowly, and shows why the slower path passed. The daily loss plan turns the firm's limit into a personal limit set well inside it, and the comparison with your own account adds up what a run of evaluation fees buys against the same money traded in a small account of your own.
Strategies
Checklist
Prop Firm Daily Loss Plan: Stop Yourself Before the Firm DoesSet a personal daily limit at half the firm's and stop there, because the firm's limit is the line that ends the account.
Case study
Prop Firm Case Study: Same Evaluation, Opposite EndingsPlan a prop firm evaluation around the consistency rule from day one, because one big early day makes every later day carry more weight.
Guides
Definitions
- End-of-day drawdown
A drawdown limit whose floor moves up only with the account's closing balance each day, as against an intraday trailing drawdown that follows the highest balance reached during the session.
Calculators
- Prop Firm Consistency Calculator
Whether your best day breaks a consistency rule, and the total profit you need for it to pass.