TRADING GUIDE
Passing a prop firm challenge: protect the account first.
A funded account is won by not losing it. Challenges are usually lost to a loss limit, not to a lack of profit. Here is the risk plan that keeps you in the game long enough to reach the target.
The short answer
Risk a small fixed share of the account on each trade (often 0.5% to 1%), stop for the day well before the daily loss limit, put a stop on every trade, and reach the profit target through a series of controlled gains — not one big trade.
How a prop firm challenge works
A prop firm usually gives you a funded account once you have shown, in an evaluation, that you can make money while respecting its risk rules. The rules vary from firm to firm, but they usually look like this:
- A profit target, often around 8% to 10% in the first phase and 5% in the second.
- A daily loss limit, often around 5% of the account.
- A maximum drawdown, often around 10% of the account.
- Sometimes a minimum number of trading days or rules on news and weekends.
Read your firm's rules line by line: they decide everything else.
Why most traders fail
- Positions too large: two or three losses in a row are enough to hit the daily limit.
- No stop on the trade: one move against you and the drawdown is gone.
- Revenge trading: after a loss, you trade more and bigger to win it back the same day.
- Giving back gains: a trade well in profit closes at a loss because nothing secured the gain.
- Trading too much: every average setup taken eats into the loss budget.
A risk plan that respects the rules
Example on a 100,000 account with a daily loss limit of 5% (5,000) and a maximum drawdown of 10% (10,000):
| Risk per trade | Amount | Full losses to reach the daily limit | To reach the max drawdown |
|---|---|---|---|
| 0.5% | 500 | 10 | 20 |
| 1% | 1,000 | 5 | 10 |
| 2% | 2,000 | 2.5 | 5 |
At 0.5% per trade, a bad day rarely ends the challenge. Add your own daily stop at half the firm's limit (2.5% here): once it is reached, you stop for the day.
How Ticks helps you on a challenge
- The loss is known before you enter: every strategy comes with its stop, so you size the trade to your risk plan.
- Gains are secured as the trade runs: from the first level crossed, each level is secured with a padlock: a trade in profit no longer turns into a loss.
- Fewer, better trades: AI confidence, win rate and risk / reward help you keep only the setups worth your loss budget.
- A suggested position size in % of your buying power, to adapt to your account.
- Notifications at every step: new strategy, entry, each level, exit — no need to stare at the charts.
Ticks places no orders and connects to no account: you see the plan and execute it yourself on your prop firm's platform. See the notifications guide.
The checklist before each trade
- The stop is known, and the loss at the stop fits my risk per trade.
- My daily loss budget still allows this trade.
- The risk / reward is worth it.
- I have not reached my own daily stop.
- I know where I will get out — at the stop, on a secured level or at the exit decided by Genius AI.
Questions about prop firm challenges
What is a prop firm?
A proprietary trading firm that funds traders. After an evaluation (the challenge), it usually gives you a funded account and shares the profits with you, provided you respect its risk rules.
How much should I risk per trade on a challenge?
Often 0.5% to 1% of the account. At that level, several losses in a row stay well inside the daily loss limit and the maximum drawdown.
What happens if I hit the daily loss limit?
With most firms, the challenge is failed at once. That is why a personal daily stop, set well before the firm's limit, is so useful.
Can I use Ticks with my prop firm?
Yes. Ticks shows each strategy with its stop, levels and exit, and notifies you at every step. You place the orders yourself on your prop firm's platform: Ticks connects to no account.
Which markets does Ticks cover?
Crypto, forex, indices, commodities, stocks, ETFs and futures. Crypto is free for life; the other markets open with All Markets, with 7 days free.
