Trading-Strategy Tips for Prop Firms
Remember, trading through prop firms is not the same as trading a personal account. The way firms are designed needs to be kept in mind when you trade. For example, remember that the account’s max drawdown follows you until the account’s starting balance, and most of us tend to risk a biiiiit more than we should with firms ($300 on a $2000 max drawdown is 15%, lol).
The following is extremely unfavorable for evaluations and the initial growth of a funded account
Very low-risk high-reward approaches like a 1:10 risk:reward (there’s a dedicated r:r section below this)
Consistency rules might make this not viable, plus there might not be enough drawdown in the account to sustain a high amount of losses before a very large win. Although, MyFundedFutures has no consistency rule or minimum trading day rule for their evaluations, lol. So, I guess this can work if you go with them. Use code Iman for the highest discount!
Most payout policies favor consistency in a trading strategy, like Topstep’s requirement of 5 winning trading days to qualify for a payout (a winning day being +$200 or more). The starter accounts with MyFundedFutures have a similar rule, but TradeDay and the expert accounts through MyFundedFutures do not. More about those three firms on this page here.
So, because of the initial drawdown and structure to firms, a higher win rate approach is clearly favored. Again, all of this doesn’t matter after you get out of the initial drawdown. But, what if you are a newer trader or at a spot where you aren’t 100% sure about everything that has to do with your approach? Hey there, that’s what I made this website for.
If you:
Have ANY (!!!) questions about trading strategies
Are wondering what to use, how to learn trading, or/and how to find your edge
Want to know what works and what doesn’t
…and so much more, then PLEASE watch this video below. I made it FOR YOU!!!
Let me help you, damnit
Prohibited trading practices with prop firms
Bet you didn’t expect that one. Maybe you did. Each firm has rules on scalping as well as some prohibited trading practices. I’ll save you some time; if it wouldn’t work on a live account, the firm probably won’t allow it. Evaluations are done on a sim account. Because of this, there are certain banned strategies that work on sim but not in a real account, like gaming the bid-ask spread in sim. You’re like, what does that mean? Don’t worry about it (I don’t know). Seriously though, each firm has clear stances on at what point scalping (high frequency short trades) becomes not-okay. My payouts have involved scalping and not scalping, but remember… you can always email support from a firm with your exact questions to find out if a certain trading strategy is allowed (including the holding time, profit targets, etc.).
If you need information about risk:reward ratios, which are actually very helpful, then I STRONGLY recommend watching this video (even if you’re not a newer trader)
Awesome, great job, so which firms are best?
MyFundedFutures (starter) for the most affordable AND best firm - link (best discount coupon = Iman)
MyFundedFutures (expert) for aggressive payout strategies - link (best discount coupon = Iman)
But, that’s missing a ton of information, so click on these cool buttons below for more
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.