Topic
Prop trading
A funded account is a rulebook with money attached. Evaluations, payouts, resets and holding rules decide how much room a trader really has.
Prop firms sell evaluations, set loss limits, and pay out a share of the profit on accounts that pass. Every firm writes its own rules, so the numbers on these pages are hypothetical and the firm's rule page is always the final word.
The losing streak is the risk most evaluations are really testing. Size for the streak first, then read the payout and reset rules with that size in mind.
Futures and stock prop accounts measure size in different units, and overnight, weekend and news rules vary from firm to firm. Compare the rule page of any firm you consider with the hypothetical rule sets used here, and size every trade from the loss limit that applies to your account.
Viewpoints
All viewpoints →-
By the numbers
A Prop Firm Payout Comes Out of Your Drawdown CushionSize a payout request by the cushion it leaves above the loss floor, and cut your risk per trade after every withdrawal.
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House rules
Position Size for the Losing Streak You Have Not Had YetSize every trade from the drawdown limit and the losing run you have not had yet, since size alone decides whether the account survives it.
Walkthroughs
All walkthroughs →Dictionary
Full dictionary →- Minimum trading days
A prop firm evaluation rule requiring trades on a minimum number of separate days before the account can pass, whether or not the profit target has already been reached.
Courses, practice and tools
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Calculator
Losing Streak CalculatorWhat a run of losing trades does to an account at different risk levels, and how long a streak a drawdown limit survives.