These are the rules 90%+ of funded trader programs enforce. Knowing them before you pay an evaluation fee is the difference between passing and losing your entry fee unnecessarily.
Almost all prop firms enforce a daily loss limit, typically 4–5% of account balance. This resets at midnight (usually server time). Exceeding it terminates the evaluation or funded account for that day — in many cases, permanently.
Read rule context +Collapse −A hard floor on total account loss, usually 8–12% from the initial or peak balance. Breaching this rule at any point ends participation. Some firms use trailing drawdown, which rises with equity.
Read rule context +Collapse −Static drawdown is fixed from the starting balance. Trailing drawdown follows your equity peak — once you profit, your floor rises. Trailing drawdown is generally more challenging for swing traders holding overnight positions.
Read rule context +Collapse −Evaluations require reaching a minimum return (commonly 8–10% in Phase 1) before a funded account is awarded. Some firms add a secondary Phase 2 target before full funding.
Read rule context +Collapse −Many firms require a minimum number of active trading days before you can pass — usually 5 to 10 days. This prevents traders from risk-blitzing on one or two trades.
Read rule context +Collapse −Some firms cap the maximum profit you can make in a single day as a percentage of total target profit (e.g., no single day can account for more than 30% of your target). Always check for this before trading with size.
Read rule context +Collapse −Many firms prohibit holding positions during major economic releases (NFP, FOMC, CPI). Violations can result in trade removal or account termination. Check the firm's economic calendar policy.
Read rule context +Collapse −Some firms prohibit holding open positions over the weekend or overnight. This is especially common for firms that model risk on their end. Verify before trading swing strategies.
Read rule context +Collapse −Prop firms vary widely on supported instruments. Forex majors are universal; crypto, futures, and equities depend on the firm. Always confirm your trading universe before signing up.
Read rule context +Collapse −Many firms allow EAs with restrictions: no HFT, no latency arbitrage, no tick scalping. Some prohibit EAs entirely. Confirm in writing, as these rules change without notice.
Read rule context +Collapse −