Prop Firm Rules That Change Everything
Prop firm evaluations have strict rules: maximum daily drawdown (usually 5%), maximum total drawdown (usually 10%), and a profit target (usually 8-10%). These constraints require a fundamentally different approach than personal account trading.
The Conservative Framework
Risk per trade: 0.5% maximum. This means you need 10 consecutive losses to hit daily drawdown. With a 60% win rate, the probability of 10 consecutive losses is 0.0001%. Trades per day: Maximum 2. Quality over quantity. Sessions: London and early New York only. No Asian, no NY PM.
Asset Selection
Trade only 1-2 assets you've thoroughly backtested. XAUUSD and EUR/USD are ideal for prop firms โ clean SMC structure, liquid, predictable session behavior. Avoid crypto (too volatile, weekend gaps) and indices (news-driven spikes) during evaluation.
The Daily Routine
Pre-session (30 min before London): Mark HTF bias, identify unmitigated OBs and FVGs, mark Asian range. Trading window: 08:00-16:00 GMT. Post-session: Journal all trades in your trade journal. Review what worked and what didn't.
Profit Target Math
8% target with 0.5% risk = need 16R total. With 2R average per winning trade and 60% win rate: expect 1.2R net per day (2 trades ร 60% ร 2R โ 2 trades ร 40% ร 1R). Timeline: approximately 13-14 trading days to reach target. Plan for 20 days to account for losing streaks.