Start Here

New to prop firms? Read this before you spend a dollar.

Most traders fail their first evaluation for reasons that have nothing to do with reading a chart. They picked a firm whose drawdown structure didn't match how they trade. They bought an account size they couldn't risk-manage. They hit the profit target and got the payout denied on a consistency rule they never read.

This page is the short version of what to do instead.


Step 1 — Understand what you're buying

A prop firm evaluation is not an investment. It is a paid test with rules, and the rules are the product. Before you buy one, you need to know three things about it:

  • The drawdown type. Trailing drawdown follows your account's peak balance upward, which means an unrealized profit you give back can end your account. End-of-day trailing only moves at the close. Static doesn't move at all. This one variable decides whether your style survives.
  • The profit target. Usually 6-10% of account size. A higher target means more days in the evaluation, which means more chances to break a rule.
  • The consistency rule. Many firms cap how much of your total profit can come from a single day. You can hit the target and still be denied.

Step 2 — Pick the firm that matches your style, not the cheapest one

If you scalp and take profits quickly, trailing drawdown will hurt you less than it hurts someone holding for a bigger target. If you hold through drawdown, a static daily loss limit is far more forgiving. Cost is the last variable, not the first.

The 2026 prop firm comparison lays the major firms out side by side.

Step 3 — Have a rule set before you have an account

An evaluation will expose whether you have a system or a habit. If your entries change based on how the last trade went, the eval will find that out with your money. Get the rules written down first — entry trigger, stop placement, target, position size, and the conditions where you don't trade at all.

Step 4 — Treat the eval as a risk test

The evaluation does not reward good trading. It rewards not breaking rules. A daily profit target, a daily max loss, and a hard cap on the number of trades you're allowed will get you further than a better entry will.


Where to go next


Risk disclaimer: Futures trading involves substantial risk of loss and is not suitable for every investor. Nothing on this page is investment advice, a recommendation to trade, or a solicitation to buy or sell any instrument. No result is guaranteed.