How to Pass Prop Firm Challenges — Step-by-Step Guide & Transcript

[00:02] this video, I'm going to give you a lot of tips and tricks so that you can pass your prop firm challenges with ease. And this is coming from a mentor who has helped hundreds, if not thousands, of in students get funded. Right? Like all of

[00:16] these amazing results that you can see on the screen right here over and over again. So, I can tell you with all my heart that every single tip and trick right? So, yeah. Continue. You can see this goes on and on. We've got so many

[00:30] these tips and tricks where I'm about to equip you with. Okay, so this is the secret sauce right there. Now, a lot of traders think prop firm challenges are a test of strategy. They are not. A prop

[00:43] firm challenge is a rule-based game. So, that's how I define a prop firm It's simply a game. And if you win the game, that doesn't mean that you're a really understand the rules of that game. If you failed at the game, that

[00:57] also doesn't mean that you're [ __ ] at trading. You could be a good trader, but right? Because you don't understand the rules. Because you don't play by the And a lot of traders, they don't fail the prop firm challenge because their

[01:10] the prop firm challenge because their strategy sucks. They fail because they break the rules before their edge has enough time to play out. revenge trade, they size up emotionally,

[01:24] they hold their trading trades through news, they hit daily loss, they blow overall drawdown. All right? They start to break every single rule that the prop And that's why they fail. Right? Like they can have the most profitable

[01:37] trading strategy under the sun, but because they exceed the risk parameters, because they violate a certain rule, they fail. about making money. They are about making money without breaching the

[01:52] rules. That is the game. And once you understand that, your whole approach starts changing. Because now you stop thinking about how can I pass this as fast as possible, and you start thinking about how can I survive long

[02:06] enough, stay within the rules, and let my edge do the work. That is a much better question. So, my best piece of advice for you who challenge or is going to attempt a prop firm challenge is this.

[02:22] Prop firm challenges reward the boring traders, not the emotional one. That's it. Okay? So, once again, the big mistake right now is that a lot of traders, they try to rush the process. They are trying

[02:36] to get funded as soon as humanly possible. They see the 5% or 10% profit target, and now they immediately start thinking, I need to make that quickly. I need to make this challenge worth it. I need to get funded with the 100K. I need

[02:50] to get funded fast. And that urgency is what destroys them. That urgency is what creates frustration, is what creates nervousness, and that's what allows you to actually fail the challenge yourself.

[03:04] because of the fact that you were nervous, because of the fact that you were emotional, you unconsciously violate any one of challenge. Okay? Remember, the faster you try to

[03:18] win, the more likely you are to break the rules. So, ironically, the longer it the rules. So, ironically, the longer it takes for you to actually get funded. doing the boring stuff. The trader who stays consistent, who

[03:32] manages risk well, and keep his losses controlled would usually outperform the trader who keep trying to be a hero, keep on trying to get funded in 20 days so that he can post on his Instagram and flex to his friends that he got a funded

[03:47] Right? So, what actually matters here is this right here. These are the numbers that define the game itself. Okay, the profit target, the max daily loss, the max overall drawdown, the trading day, the

[04:01] through with you in a bit in part two of this lesson itself. These numbers are everything because they define the game. If you do not build your strategy around these numbers, then you are not really trading the challenge. You are just

[04:16] else's rule book. And that number ends well. Right, so what you want to do is to really understand the numbers and then structure your trading so that you can like game those numbers

[04:30] mathematically. If the profit target is this, and that's want to make sure that you adjust your risk parameters so that you do not violate your max daily loss, max overall drawdown, but still give

[04:43] your target. So once again, we're going to dive deeper into like the actual strategy in part two of this lesson itself. For now, let's let's just go back to the theory. Right, so what's the best strategy for

[04:55] passing then? It's this, very simple. Stay small, stay consistent, stay alive. I call these the three stays. Stay small, stay consistent, stay alive.

[05:07] should be risking small enough you. Your risk per trade should not be more than 1% per trade. Should not even be more than 0.5% per trade.

[05:21] And you want to focus on A and A+ setups only. Right, you only want to be fact that it's going to work out. You want to avoid all the random trades You don't want to force trades when the market conditions is not ideal, when the

[05:36] And you want to make sure that you protect your trading account, your trading rules at all costs. Because the goal here is not to hit the target in one day. The goal here is to hit the target without breaching the

[05:50] rules. Okay? And once again, that usually happens faster when you are when you stop trying to rush it. Remember, the goal is not to get funded. The goal is to get paid.

[06:03] So, getting funded is just stage one, right? Once you get funded, you still need to think about how to actually get paid. And not just get paid once, but get paid consistently from the market. So, you might as well use this challenge

[06:16] right here to build the right habits from the ground up. So, that eventually when you do get funded, when you do have the capital, you are able to like adhere it's already a habit, right? It's already part of your identity. Okay? So,

[06:29] traders, they tend to fail because they revenge trade after a loss, they over trade out of boredom, they ramp up their lot size after a few wins, they hold into dangerous news events,

[06:44] they give back the profits back to the market, they try to make up for lost and all of this is not a strategy problem. Like, the guy can trade, right? The guy has a good strategy. But, because he lack discipline, he's

[06:59] too emotional, he lack structure, he failed the challenge. I really believe that passing a prop firm challenge is less about finding a better setup and more about building better behavior.

[07:13] If you have the right behavior, you play by the rules, it's only a matter of time wrong behavior, you can have the best setup in the entire world, but you will still fail. Even if you do pass, you will not be able to maintain that funded

[07:27] account, you will not be able to extract payouts consistently from that funded account itself. So, yeah. It's all about just playing by Like I said, just like any game, you just got to understand the rules of the

[07:40] game, and as much as possible, try to game the rules of the game if you can, game the rules of the game if you can, but like you still have to follow them. Your real edge in a prop firm challenge is not just strategy. It's your ability

[07:53] to turn the prop firm rules into your own system. Because once the rules are clear, the game becomes so much more easier. Which means define a risk, respect the daily loss, respect the drawdown right

[08:08] here. Keep your trade count low, trade only your best session, avoid landmines like high impact news, and just let the challenge unfold over a series of controlled days.

[08:22] That is how you pass. Not by gambling, not by rushing, not by trying to be clever, but by being structured enough to let your edge compound without without breaking the rules and losing the account itself.

[08:42] of strategy, it's hard because of the rules. And your job is to turn those rules into a process that you can actually follow when emotions hit, on the line, you're going to feel nervous, you're going to feel

[08:55] you're going to feel fear, greed, all of those stuff right here. Which is why it's so important for you to have some form of guardrails that prevent you from making stupid mistakes, that prevent emotions from taking control over your

[09:09] decision making. Which brings us to the second part of this lesson. Knowing the prop firm rules is one thing. Actually following them in real time is another So now, what I want to do is to show you how to use Edge Flow to turn those prop

[09:24] firm rules into guardrails, so you stop relying on willpower and start trading the challenge with structure. To me, this is how you cheat at a prop firm challenge, by having guardrails that other traders do not have.

[09:37] So, with that being said, enjoy the lesson. This app lets you cheat at prop firm challenges. So, you pass them faster. Not by breaking the rules, the opposite, but by enforcing them. Now, before we talk about the game, right?

[09:51] Before we talk about how to pass a prop firm challenge faster, let's understand what the game actually is. So, a prop firm challenge isn't a test of how smart your strategy is. It's a test of whether you can follow rules under the pressure.

[10:06] So, let's quickly break down the rules that govern the game. Because once you understand these numbers, passing becomes way easier and you will stop failing for dumb reasons. So, for the sake of simplicity, I'm just

[10:18] going to show you in the example of a $200,000 funded account from FTMO. Right, so in order for you to get funded with 200k of them, you have to pay this refundable fee of like around 1k euros and you have

[10:32] to pass that challenge, which is comprised of two phases. Okay? So, once you pass those two phases, this is where you will get funded with 200k and you can trade with this large amount of trading capital.

[10:46] one. First of all, we got a profit target. This is the goal that you need to hit in order to pass each phase. So, for phase one, the first phase, you have to get a profit target of 10%. And then for the

[11:00] second phase, you have to get a profit target of 5%. target of 5%. So, you have to make 10% in the first phase and you have to make 5% in the second phase in order for you

[11:12] to actually get funded. Right, so in total, you have to make around like 15% together. Bear in mind that you're not trying to get there in one day. You are trying to hit it without breaking the loss rules,

[11:27] difficult. Right, because if you are just going to aim for 10%, you can just full port your account and just like over leverage, over size your trades and you can easily achieve that in like one trade. But the thing is

[11:40] you have the max loss rule. So the max daily loss, this is the maximum amount of money you are allowed to lose in a single day. So in this example is 5%, right? So if you hit this and you keep trading, you

[11:55] And this is the one rule that most traders breach because they start getting tilted, they start spiraling out of control, they start revenge trading and as result they lose way more than 5% on a any given day, right? For example,

[12:10] on this trade they lose they might lose 2%. Next trade they lose another 2%. Now they're already down 4% but they start feeling this urge to make back the money they have lost. So they continue trading and then they lose another 2%. And then

[12:22] now they just lost the entire challenge. They just failed the entire challenge rule. Next is the max loss rule. This is the maximum you're allowed to lose on the account overall. So in this example

[12:37] itself, it's around 10%. So if you lose your 10% of your capital in total, right? Out of all the trades they have taken combined, you lose 10% this is where you fail the challenge. All right, so you want to be extremely

[12:52] careful, right? This is what we call the death line, right? Once you cross this line, boom, you're gone. And then you got the minimum trading days. Minimum trading days is the amount of days that you are required to trade

[13:06] in order for you to pass this challenge. Right? So some firms actually have this where you have to trade for a certain number of days. So this allows them to check whether you are just yellowing one day and then I just passing by luck,

[13:20] right? So in this example is four days, which means even if you hit the target early, right? Even if you make 10% in your phase one within like one day, you still have to take a bunch of trades for three more days in order for you to meet

[13:34] the minimum days requirement. And then we got the trading period. This is how long you have to complete the challenge. In this example, it's unlimited, right? Meaning there's no time pressure. You

[13:47] can trade it for as long as you want. You can take it at your own own time at your own pace. And as long as you get the 10% and 5% you'll be fine. You can pass the challenge, right? So, you can slow down, trade clean, and focus on not

[14:00] breaking rules. But on some prop firms, there might be some form of trading period, right? Where you have to pass and you have to get 10% or 5% within 30 and you have to get 10% or 5% within 30 days, within 60 days, right? So, yeah,

[14:13] the the rewards, right? The rewards is pretty much your profit split once you got funded. So, in this example, it's up to 90%, which means when you get funded with 200k and you start winning trades, you start making money on the account

[14:28] itself, you will get to keep most of the profits. You will get to keep up to 90% of the trading profits. And then the firm will take the remainder, right? Could be 10%, could be 5%, depending on

[14:40] Could be 10%, could be 5%, depending on once again the the percentage split. So, I fundamentally believe that prop firm challenges isn't hard because of strategy, it's hard because of the rules, right? It's hard because of these

[14:52] rules right here. It's difficult to try to pass, get this profit target, while simultaneously ensuring that you don't breach the max daily loss and the max loss rule. And I also ensuring that you actually meet the minimum trading days,

[15:05] hard. So, your job is to turn these numbers right here into guardrails. So, you don't breach them when emotions And that's what Edge Flow allows you to do, right? So, now

[15:20] let's do that, right? Let's set up our prop firm guardrails into Edge Flow, right? Let's build discipline into our execution system so that we actually meet these rules and we can actually pass with flying colors. This way, once

[15:33] again, you're not relying on willpower when you're angry, you're relying on a So, let's go to settings right now and let's go to trading preferences. This is So, obviously, we already have a lesson on how to set your guardrails properly,

[15:47] right? So, please go and check out that lesson if you haven't done so. In this lesson, I'm just going to show you the guardrails that you can set in order to faster, right? So, for max trades per day, I

[16:01] five trades a day. Okay, three to five trades, not too much. If you are risking 1% on any given a prop firm challenge, you're either risking 0.5% or 1%. I'm going to talk

[16:15] You want to make sure that you don't take too many trades on a day, right? trades on a day, you're going to breach your max daily loss easily, right? So, I would say if you're a scalper, you can set it to five, right? But, if you're

[16:31] more of an intraday trader, you can just set it to three, right? So, highly to fit your trading style, to fit your trading personality, to fit your trading And this is very useful because it really prevents you from overtrading. It

[16:45] prevents you from, you know, just incurring the the just breaching the max So, this is where I'll just be conservative and put three. Now, for the max daily loss, right? This is where you want to set it

[17:00] so that you have a little bit of buffer and you don't actually breach your trading rule, right? Breach your max daily loss rule. So, earlier on in the example I've showed you, the max daily loss for the prop firm challenge is 5%.

[17:13] So, if you put it at 5% right here, it's a little bit risky, right? So, you might want to put it at 4%. This way, when you hit 4% Edge Flow blocks you from trading. It prevents you from continuing trading. Right? And now you know that,

[17:26] okay, cool. Hands off, right? Or you can be even more safe, you can set it at like 2%. I personally like to set it at 2%. Right? So, if I'm trading a 100k account, I'm going to set it at $2,000. If I'm trading a 200k account like what

[17:39] you've just seen right here, this is where I set it at like $4,000. Right? So, that'll be 2% of my account. But like I said, 2% is good enough for me personally. If you want, you can set it to 4%, right?

[17:52] But I like 2%, right? Just to be safe. Okay? Because this is really the hard stop, right? They will block you from trading once you hit it. And this is also like the rule that causes most prop firm traders to fail.

[18:05] Next, you've got your max daily profit. Now, this is completely optional, right? You can choose to set a max daily profit or you don't have to, right? Like it's completely up to you. But I still recommend you to do it.

[18:18] one you need to get 10% to pass, right? And then on phase two you need to get 5% to pass. But that's for your entire period where you are attempting the prop firm challenge. This is max daily

[18:32] you want to aim for on a day-to-day basis. And once you hit the target, you stop trading to prevent yourself from giving your profits back to the market itself. So, you need 10% overall, right? But for your daily profit, you don't

[18:46] need to get 10% in one day, right? That's You don't want to be doing that, you're going to be over risking, you're going to be increasing the likelihood of failing the challenge. So, what I recommend you to put here is

[19:00] So, what I recommend you to put here is 1%. Okay? 1% of your trading account on So, in this case on a 200k account, Once you make $2,000 for the day, you stop trading for the day.

[19:14] bit aggressive and push a little bit more, you can go for 3%, right? Which is like around $6,000, right? Or even 5%, right? But you just want to make sure that you set a figure that makes sense to you. Okay, so in this example, I'm

[19:26] just going to set it to like just 1%, right? 1% a day. As time passes, this will add up, right? Like I said, the goal here is not to make the most amount of money on any given day. The goal here is to make sure that you

[19:39] don't give back the money that you actually make. Okay, so 1%. Once you hit it, stop trading, live to fight for another day. Next up, we got the risk per trade. Now, this is where it gets a little bit

[19:52] interesting, right? Because what you set here is going to increase or decrease the likelihood of you actually passing this prop firm challenge. I recommend you to set it at 0.5%.

[20:06] Okay, 0.5%. Because when you risk only 0.5% of your capital on any given trade, now you have more room to breathe. Now you have more buffer to play with, where you can take more losses

[20:19] and still stay in the game, right? So, 0.5% is a pretty good number for me. When I'm trying to attempt a prop firm challenge, I like to use a variable risk

[20:31] method, which means that I like to risk 0.5% on a A setup. But if I see a A+ setup, which means I have more conviction, more confidence, I could put

[20:43] I could actually increase my fixed risk per trade from 0.5% to 1%. Right? But you don't want to set it over here, right? You can manually bump it up to 1% for that one trade when you are

[20:57] trading in the trading platform. So, over here I'll just put 0.5%. Let me right? So, over here I've already set my risk per trade at 0.5% and today let's say I enter for a buy for EUR/USD and I want to place my stop loss at 1.17,

[21:13] okay? So, let's say. And obviously, Edge Flow will automatically calculate my lot then let's say I want to place my take profit at 1.19. So, this is where if it's a A setup, I

[21:27] will set it at 0.5%, right? But if if it's a A+ setup, I might want to set it to 1%, right? So, this is where I can press this unlock button and then just adjust my risk per trade to set it to 1. Right? And you can see my lot size

[21:39] literally just doubled. And this is where I can actually place And if it's a A+ setup, I'll risk 1% on this setup itself. Yeah, so this is what I'll recommend you to do. I'll recommend you to actually

[21:52] adjust the risk per trade manually to 1% when you see a A+ setup for the trade, rather than setting it in your guardrails, right? So, in your guardrails, just stick to 0.5%. Your default for risk per trade, it should be

[22:06] Most importantly, it have to be consistent, Because prop firms don't fail you because of one bad trade. They fail you because you start breaching your risk management rules. You start hitting

[22:22] their limits, right? They like to punish you for breaching risk management rules more than they punish a normal losing streak. So, be conservative, stick to 0.5%. Uh and the thing about A+ setups is that it's quite rare, right? A+

[22:35] they check off every single box. Once again, I did done the lesson covering how to define A+ setups, how to look for them. So, you can check that lesson out. But when they do appear, you they kind of earn the right to like

[22:47] slightly use a little bit more risk, right? Just 1%. Okay? So, yeah. Just stick to 0.5% and you'll be fine. Remember, consistency beats aggression. randomly, you you start to neglect your risk per trade. Sometimes you risk 0.5%

[23:03] sometimes you risk 2% sometimes you risk 5%. Now, your equity curve will also become random. Okay, there's like a direct correlation with your actions random. And when you do that, you're going to

[23:16] But, if you keep your risk consistent, right? Always sticking to 0.5% you can out. Next up, we've got your trading window, right? So, for a trading window, you only want to set your best session window, right? So, on data, based on

[23:32] historical performance, what is the time window that you tend to perform the best in? So, for me personally, based on my data, I figured out that my trades tend to work out really really

[23:45] well during the London Q-Zone. Right? So, that is somewhere within like 7:00 a.m. UTC to around 10:00 a.m. UTC. Which means that during this window, right? During these 3 hours, I tend to see the most small trading opportunities

[23:59] and when I do enter for those trades itself, those trades tend to play out within this time window. Right? So, I'll advise you to like, once again, based on data, right? Not based on guesswork or emotions, based on data, find out the

[24:12] time that you tend to trade perform the best in, right? Put a start time here, put an end time here and just click save changes. And when you do that, now you have just set up guardrails.

[24:24] guardrails in jail while you are trading. Your max trades per day, your trading window, your max loss, your max profit and also whether you are actually

[24:36] always appear right here. If you actually end up, you know, violating your trading rules. Okay, so, now that our core guardrails are set, there's one accounts and it has nothing to do with strategy.

[24:50] And that is news. Okay, that is news, your economic news. On Edge4, we actually an ability, right, to block trading before and after high impact news. The reason why you want to block trading before high and after high

[25:05] impact news is because when high impact news comes out, the spread start blowing out of proportion. Slippage starts spiking. And then, there's a lot of market manipulation where price goes up, down

[25:18] 100 pips, and price at both sides grab all the available liquidity. And if you trade during news, you are essentially gambling. either restrict trading around news, which means if you trade around news,

[25:32] Or they will punish you for getting clipped by that insane volatility that actually appeared during news. Right, so highly recommend you not to trade news. Just come on to news on

[25:46] Edge4 itself, and you can actually block trading before and after high impact news. I would recommend you to set it to 15 minute before and after high impact news. Right, this way you can really like just stay away from trading

[25:59] during that unpredictable pre- period where there's insane amounts of volatility. All right, we have turned the prop firm rules into guardrails. So, blocked. But, people still fail because of a few

[26:13] But, people still fail because of a few predictable behavioral patterns. So now, let me show you the most common ones and the exact Edge4 fix for each. First of all, revenge trading, right? This is the fastest way to blow a

[26:26] challenge. You take one loss, you start getting emotional, you start trying to make it back immediately. Edge4 fixes that with the max daily loss hard stop, right, the guardrail that we have literally just said.

[26:39] And if you still feel triggered, I would highly recommend you to go straight into our sanctuary feature to reset your nervous system, to get back into mental equilibrium before you do something stupid.

[26:53] Next is overtrading. Most traders don't fail because of one bad trade. They fail because they take too many low-quality trades. They prioritize activity over making money.

[27:06] day and a shorter trading window. So, you're only trading your best hours and you're only trading your best setups. Next is holding into high-impact news, right? News volatility. Like I said

[27:21] earlier on, news is where spreads start widening, slippage start happening, and lot of like unpredictable volatility during news. And Edge Flow fixes this with news blocking and allows you to plan in

[27:35] advance on the economic calendar. You know exactly what days have high-impact news and you can trade around it. Next is risk spikes after win, right? couple of trades, start feeling euphoric, start feeling invincible, you

[27:49] bad loss. And then that one bad loss into one big loss. And then that one big loss wipe out your entire progress. You know, you could be like just 1% away from the profit target, but then you lose.

[28:03] emotional. Then and then you lose another trade. And then now you just to square one. You're back to 0% and then eventually you even go all the way down and breach your max loss rule, right? Because you

[28:15] kept trading after the initial loss. So, Edge Flow fixes this with fixed risk tiers, right? Allows you to take stick to a consistent risk per trade every trade, and we also track your consistency. So, you stay boring and

[28:30] And giving back profits, right? We all know the feeling of you making money, you keep trading, and you donate it back to the market. The market doesn't need donate it back to the market because you're so kind.

[28:43] Edge Flow fixes this with a profit target stop and the habit of closing a session once you've hit your daily goal. That's it for this lesson itself, right? Remember, passing a prop firm challenges really simple. It's just like a game.

[28:56] game, and you practice it, eventually you're just going to get good at the game. So, don't break the trading rules, stay consistent, and let your edge compound. Edge flow, get it? Let your

[29:09] Most people fail because they rely on willpower, and willpower disappears the And with Edge Flow, we've turned your prop firm rules into a system. So, discipline becomes automatic, and passing becomes inevitable.