How to Get Funded
in a Prop Firm: Step-by-Step Guide

Why most traders fail

Getting funded account prop firm guide in a prop firm is the dream of thousands of traders. Accessing capital of 50,000$, 100,000$ or even 150,000$ without risking your own savings is an extraordinary opportunity. But reality is brutal: between 80 and 90% of traders fail their first challenge.

This figure should not discourage you. It should alert you to the importance of preparation. After accompanying hundreds of traders on their journey to funded, I have identified a recurring pattern: those who fail jump in too quickly, without a tested strategy, without a risk management plan, and often without even understanding the challenge rules.

Those who succeed, on the other hand, share common characteristics: they have backtested their strategy, they respect strict risk management, and they approach the challenge like an exam they have already revised — not as an experimentation ground.

In this comprehensive guide, I will detail step by step how to pass your prop firm challenge and get funded. Whether you're a beginner or have already failed one or more challenges, this guide will give you all the keys to succeed. If you're a complete beginner, I recommend first reading our complete prop firm guide for beginners.

1. Understanding how a prop firm works

Before rushing headlong into a prop firm challenge guide, it is essential to understand how a prop firm works (proprietary trading firm). The principle is simple: the prop firm provides you capital to trade, and in exchange, takes a percentage of your profits.

The evaluation process

To access the capital, you must first pass a challenge (also called evaluation). It's a test that evaluates your ability to generate profits while respecting strict risk management rules. Here's what you generally need to comply with:

• Profit target: reach a gain percentage (generally 6 to 8% depending on the prop firm)
• Maximum drawdown: do not exceed a maximum authorized loss (trailing, EOD or static)
• Minimum trading days: often 5 to 10 days minimum
• Possible restrictions: allowed instruments, trading hours, max position size

The allocated capital

Accounts generally range from 25,000$ to 250,000$. The larger the capital, the higher the challenge cost, but the rules remain proportionally identical. The choice of amount depends on your experience and your trading strategy.

The drawdown: the most important rule

The drawdown is the #1 cause of elimination. There are several types:

2. Preparing before launching the challenge

Challenge success is decided before even buying the evaluation. If you skip this step, you're literally throwing your money out the window. Here are the three pillars of preparation.

Backtesting: your foundation

Before trading live, you must have backtested your strategy on a minimum of 100 trades. Backtesting consists of applying your strategy on historical data to verify it is profitable. You must know:

• Your win rate — ideally above 45%
• Your average risk/reward ratio — minimum 1:1.5, ideally 1:2 or more
• Your maximum historical drawdown — must be less than 50% of the drawdown allowed by the prop firm
• Your maximum consecutive losing trades — to calibrate your position size

The demo period: the moment of truth

Backtesting is theory. Demo trading is practice. You must trade in real conditions (with the same rules as a challenge) for minimum 2 to 3 months. This is not negotiable.

During this period, note everything in a trading journal: your entries, your exits, your emotions, your mistakes. It's this journal that will allow you to correct your weaknesses before risking real money.

The written trading plan

Your plan must be written down in black and white and cover every aspect of your trading:

• Entry conditions: what signals trigger a trade (support/resistance, breakout, rejection, etc.)
• Exit conditions: where to place the stop loss and take profit
• Position sizing: how many contracts per trade, based on what calculation
• Trading hours: when you trade and when you do NOT trade
• Stop rules: after how many losses you stop your session
• Days to avoid: FOMC, NFP, CPI and other major announcements

3. Choosing the right prop firm and account

Not all prop firms are equal, and the choice of account type can make the difference between success and failure. Here's how to choose intelligently.

Account types at Phidias Propfirm

At Phidias Propfirm, one of the prop firms most appreciated by the French-speaking community, you have a choice between several plans:

For a first challenge, I strongly recommend the Static plan: the fixed drawdown is much easier to manage than the trailing. You don't have to worry about your drawdown threshold rising with your gains, which considerably reduces stress. To explore this topic further, see our OTP vs Evaluation comparison.

OTP vs Evaluation: which model to choose?

Phidias offers two payment models:

• Evaluation (monthly subscription): you pay each month as long as you're in evaluation. Cheaper at the start, but costly if you take time.
• OTP (One Time Payment): you pay only once, no recurring fees. More expensive at the start, but no time-related stress.

My advice: if you are confident in your preparation and you think you'll get funded in less than a month, the classic evaluation is enough. If you prefer trading without time pressure, the OTP is a smarter investment in the long run.

What capital to start with?

For a first challenge, a 50,000$ account is the sweet spot. It offers enough margin for comfortable risk management (500$ risk per trade at 1%) without being too expensive. Avoid starting directly on a 150K$: the psychological pressure will be too strong.

4. Risk management during the challenge

Risk management is the #1 skill that determines whether you get funded or not. It's not your strategy, it's not your technical analysis — it's your risk management. For a detailed guide on this topic, see our complete prop firm risk management guide.

The 1% rule per trade

This is the fundamental rule: never risk more than 1% of your capital per trade. On a 50,000$ account, this represents 500$ maximum risk per position. This rule allows you to easily absorb 5 to 8 consecutive losses without endangering your challenge.

Concretely, to calculate your position size:

• Determine your stop loss in ticks/points
• Calculate the value of this stop in dollars
• Adjust the number of contracts so as not to exceed 1% risk

Example on ES (E-mini S&P 500): if your stop is at 10 points (= 500$/contract) and your max risk is 500$, you trade 1 contract. If your stop is at 5 points (= 250$/contract), you can take 2 contracts.

The daily loss limit

Beyond risk per trade, set yourself a daily loss limit of 1 to 1.5%. As soon as you reach this limit, you close your platform. No discussion, no "one more trade". This rule protects you from revenge trading, the most destructive mistake.

Drawdown management

The minimum risk/reward ratio

Aim for a minimum ratio of 1:1.5, ideally 1:2. This means that for every dollar risked, you target 1.50$ to 2$ in gain. With a 1:2 ratio, even a 40% win rate makes you profitable. It's mathematical.

5. The ideal trading strategy to get funded

A prop firm challenge is not the time to experiment with a new strategy. You must use what you already master. That said, here are the approaches that work best to pass a prop firm challenge.

Scalping and day trading: the queen strategies

Scalping (trades of a few seconds to a few minutes) and day trading (intraday trades closed before the end of the session) are the strategies most suited to challenges. Why?

• No overnight risk (positions closed each day)
• Total control over each trade
• Sufficient number of opportunities to reach the target
• Allows respecting the minimum number of trading days

Instruments to favor: ES and NQ

In futures, two instruments dominate:

• E-mini S&P 500 (ES): the most liquid, tight spreads, predictable movements. Ideal for beginners. 1 tick = 12.50$.
• E-mini Nasdaq 100 (NQ): more volatile than ES, offers wider movements. More potential gain but also more risk. 1 tick = 5$.

My advice: start with the ES to familiarize yourself, then integrate the NQ once you master risk management. Don't trade more than 2 instruments simultaneously during a challenge — concentration is key.

Optimal trading hours

Timing is crucial. Here are the most profitable windows (Paris time):

• 3:30 PM – 5:00 PM: opening of the American session. High volatility, many opportunities. This is often where the best trades happen.
• 5:00 PM – 8:00 PM: active American session. Directional moves, well-defined trends.
• 8:30 PM – 10:00 PM: end of US session. To be avoided for beginners, volatility often declining.

Setups that work

No need for complicated strategies. The most effective setups to get funded are:

• Support/Resistance: bounces on key levels with confirmation
• Market Profile (POC, Value Area): returns to value zones
• Volume Profile: identification of high activity zones
• VWAP: bounces and deviations from the volume-weighted average price
• Range breakouts: breakouts of consolidations with volume

The essential is to master 2 to 3 setups maximum and execute them with rigor. A trader who perfectly knows 2 setups will always surpass one who uses 10 approximately.

6. Managing the psychology of the challenge

Psychology represents 80% of the success of a challenge. You can have the best strategy in the world — if you don't manage your emotions, you will fail.

Patience: your best weapon

The 6% target can be reached by making 0.3 to 0.5% per day. This means that in 12 to 20 trading days, you get funded. No need for 2% per day breakthroughs. Consistency always beats one-off performance.

Set yourself a modest and realistic daily target. Once reached, stop trading. Securing 250$ per day on a 50K$ is much smarter than aiming for 1,000$ and risking losing everything.

Discipline: follow the plan, not your emotions

Before each trade, ask yourself these three questions:

1. Is this trade in my plan? (if no, don't take the trade)
2. Is my stop loss placed? (if no, don't take the trade)
3. Is my risk less than 1%? (if no, reduce your position)

If the answer to these three questions is yes, execute the trade and let it live. If a single answer is no, move on to the next.

Revenge trading: your worst enemy

Revenge trading means trading to "make it back" after a loss. It's the most destructive behavior in trading, and it's the #1 cause of challenge failure. When you lose a trade, your brain immediately wants to recover the money. It increases size, takes poor quality trades, ignores the plan.

The anti-revenge trading rule:

• After 1 loss: 15-minute pause
• After 2 consecutive losses: minimum 1-hour pause
• After 3 consecutive losses or -1.5% on the day: immediate stop of the session

De-dramatize the stakes

Remember: you only risk the challenge price (a few dozen to a few hundred euros). You're not risking your apartment, your savings, your family. If you fail, you can start again. This perspective de-dramatizes the stakes and frees up your trading. With the LUCAS code that offers up to -80% at Phidias, the cost of a challenge is derisory compared to the capital you can get.

7. Fatal mistakes to avoid

After accompanying hundreds of traders, here are the 7 mistakes that kill challenges. Avoid them and you will already have a considerable advantage over the majority. For a dedicated article on this topic, see our guide on the most common mistakes of traders in prop firms.

Mistake #1: Jumping in without preparation

It's the most frequent mistake. Buying a challenge after watching a motivational YouTube video, without having backtested the strategy or traded in demo. Result: elimination in a few days. Solution: minimum 3 months of demo preparation.

Mistake #2: Risking more than 2% per trade

Some traders risk 3, 5 or even 10% per trade hoping to reach the target quickly. It only takes 2-3 losses to be eliminated. Solution: never more than 1% per trade, 1.5% per day.

Mistake #3: Revenge trading

Wanting to "make it back" after a loss by increasing size or taking impulsive trades. It's the death spiral. Solution: 2 consecutive losses rule = session stop.

Mistake #4: Ignoring challenge rules

Not reading the conditions in detail and getting eliminated for a rule you didn't know (max position size, closing hours, forbidden instruments). Solution: read EVERYTHING, print the rules, and re-read them each week.

Mistake #5: Trading without stop loss

"I monitor manually" is the most dangerous phrase in trading. A flash crash, a surprise announcement, and your challenge is over in seconds. Solution: physical stop loss (in the platform) on EVERY trade, no exception.

Mistake #6: Increasing size after gains

You're at +3%, you feel invincible, you double your position. A single losing trade erases several days of gains. Solution: keep exactly the same position size throughout the challenge.

Mistake #7: Wanting to go too fast

Impatience pushes to overtrade and take excessive risks. Reaching 6% in 3 days is possible but extremely risky. Solution: aim for 0.3 to 0.5% per day and take your time. The challenge won't disappear.

8. After the challenge — the funded account

Congratulations, you passed your challenge! But the work isn't over. The funded account (also called live account) has its own rules and requirements. Here's what you need to know to keep your account and maximize your income.

Funded account rules

Once funded, you trade with real capital from the prop firm. The rules are generally:

• Drawdown: always present, sometimes different from the challenge. Check carefully.
• No profit target: you no longer have a target to reach, only a drawdown to respect
• Position size: generally identical or slightly different from the challenge
• Consistency rules: some prop firms verify that you trade consistently (no day at +5,000$ and nothing the rest of the month)

The payout system (profit withdrawal)

Payouts are the moment when you recover your gains. Here's how it generally works:

• Frequency: monthly or bi-monthly depending on the prop firm
• Split: you generally keep between 80 and 90% of your profits (the rest goes to the prop firm)
• First payout: often after 10-14 days minimum trading
• Methods: bank transfer, PayPal, crypto depending on the prop firm

Scaling: increasing your capital

Most prop firms offer a scaling program: if you are regularly profitable, your capital is increased. For example, after 3 months of consistent profitability, your 50K$ account can move to 75K$, then 100K$, etc.

This is where the long-term strategy makes full sense. By combining multiple funded accounts and benefiting from scaling, some traders generate five-figure monthly income without having invested more than the price of a few challenges.

The pitfalls of the funded account

Paradoxically, many traders lose their funded account after obtaining it. Why?

• Relaxation of discipline: once funded, you feel "arrived" and neglect risk management
• Increase in size: now that it's "real", you want to win more, faster
• Payout pressure: the desire to withdraw money pushes to take risks

The key: trade your funded account exactly like your challenge. Same size, same strategy, same discipline. Funded is not the finish line — it's the start of a career.

9. Frequently Asked Questions

How much does a prop firm challenge cost?

The price varies according to account size and prop firm. At Phidias Propfirm, challenges start at a few dozen euros for a 25K$ account. With the LUCAS code, you benefit from up to -80%, which makes the initial investment very accessible. It's an exceptional risk/reward ratio when you compare it to the capital you can get.

Can you get funded as a complete beginner?

Technically yes, but in practice, it's very risky. A complete beginner should first spend minimum 6 months learning trading (training, demo, backtesting) before attempting a challenge. Rushing means burning money unnecessarily. Start with our complete beginner guide.

What happens if I fail the challenge?

You lose the cost of the challenge, that's all. You can immediately buy a new evaluation if you wish. However, before starting again, take the time to analyze why you failed: drawdown exceeded? Bad risk management? Discipline issue? Correct the problem before reinvesting.

How long to reach the 6% target?

With a daily target of 0.3 to 0.5%, it takes 12 to 20 trading days. Don't put time pressure on yourself. Most challenges have no time limit (especially in OTP), so take the time you need. Better to get funded in 30 days than to be eliminated in 5.

Can I have multiple funded accounts at the same time?

Yes, most prop firms allow multiple simultaneous funded accounts. It's even a recommended strategy to diversify your income. Some professional traders manage 3 to 5 funded accounts in parallel, which allows them to achieve significant monthly income.