Don’t be one of the people that is denied funding for breaking a rule that was stated on the front page of the firm’s website. It’s sad yet completely preventable. This page will cover most of the basics of prop firm evaluations, but always make sure to read the rules for each individual firm.

First, the 3 major rules to check for

1) THE CONSISTENCY RULE

Almost all firms have a consistency rule. I’ll use TradeDay for this example. They have a 30% consistency rule, which means that “No single day’s profit should exceed 30% of the profit target.” On the 10k account pictured here, 30% of the profit target is $300, so don’t make more than that in 1 day!

You won’t fail the evaluation if you have a $400 day, but it means that the total profit target would extend until $400 becomes 30% of the target. So, your new profit target would be $1,334! DON’T DO THAT! Check for this, because firms have different consistency rules. Topstep’s is 50%, while MyFundedFutures doesn’t even have one. We’ll get to that in a bit though. Remember, you can intentionally lose some trades if you ever go over the consistency threshold.

2) MINIMUM TRADING DAYS

This one varies a LOT among firms, and it can easily result in funding being denied if not followed properly. To go along with TradeDay’s 30% consistency rule, they also have a 7-minimum-trading-days rule. You have to trade (like you normally do) for at least 7 trading days. If you make $250 4 days in a row to hit the $1000 profit target, you can’t just take a breakeven .03 second trade on each of the last 3 days. I never really dealt with this rule, since passing the evaluation with them (which I livestreamed all of) took almost a whole month. I’ve seen some leniency with this rule, but don’t push it.

MyFundedFutures doesn’t have a minimum trading day rule or a consistency rule, which is highly unusual. Technically, you can pass the evaluation in one day. Click here for my link to them, and code Iman is always the highest discount.

3) THE BIG ONE: “NEWS”

All the time, you’ll hear about someone failing an evaluation because: 1) they accidentally took a trade during a red-folder / tier-1 news event and their account was wiped in .1 seconds, or 2) they actually think gambling news events is a viable strategy. Use Forexfactory.com to avoid trading during these red-folder news events, and check the policy of the firm you’re using. Some allow holding through these events if you’ve been in a trade for a certain amount of time before that, but most do not allow any positions to be open. Take a look at the exact moment a CPI report comes out on the Nasdaq if you don’t understand why firms have rules about “trading the news.”

Prop firm evaluation lessons, rules, tips, how it works, and everything else

You’ve learned 3 of the most important rules, so now let’s cover the basics. Below is everything (explained by me) for what is currently the best 50k account in the industry. This is the best drawdown to profit target EOD-drawdown 50k-account, and also by the far the most affordable for funding due to having no activation fee. Clicking the image takes you to their site using my link, and remember that code Iman is always set to the highest available discount. They are already cheap, so big sales are super rare.

Remember, I have a dedicated page for max drawdown and the different drawdown systems here. This is crucial to understand, because it’s not quite as simple as it sounds. If it didn’t sound simple to begin with, then you definitely should read that page.

As long as you follow the rules, then you will get funded once you hit that profit target. Don’t rush; the firms that I am showing you on this website allow you to take as much time as you need to pass the evaluation. If you’re wondering about which firms to use, go here and see a complete comparison between the best ones. I’ll give you a shortened version down below.

Next, let’s cover the actual trading part! Click the button below or the text in the bottom right to go there.

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RISK AND AFFILIATE DISCLOSURE - Never risk money you can’t afford to lose!

Futures, foreign currency and options trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. Most traders do not succeed. The links on this site are primarily affiliate links, which financially supports me at no extra cost to you. I partnered with multiple firms, because I don’t see 1 firm that has it all. Not being exclusive to one firm also helps to reduce bias, because I’m partnering with the firms that I think are the best.

Prop Firm Evaluation Rules to Look Out for!