How-To Guides
Practical guides and glossary entries for prop traders. Everything from drawdown mechanics to choosing the right challenge type.
FEATURED GUIDE
IN-DEPTH EXPLAINER
Trailing Drawdown Explained — What It Is and How to Avoid Being Stopped Out
Learn about trailing drawdown, how it works, and strategies to avoid getting stopped out of prop trading challenges.
CHALLENGES
CHALLENGES
Two-Phase vs One-Phase Challenges — Which Is Right for You?
The differences between two-phase and one-phase challenges and which one suits your trading style.
CHALLENGES
How to Pass a Prop Challenge — Rules That Trip Traders Up
The most common mistakes traders make and how to avoid them.
DRAWDOWN
DRAWDOWN
Daily Drawdown vs Max Drawdown — Key Differences
Understand the crucial difference between daily drawdown and maximum drawdown in prop trading.
DRAWDOWN
Balance-Based vs Equity-Based Drawdown
Which type of drawdown works best for your trading style? Learn the pros and cons of each approach.
EVALUATION
EVALUATION
Two-Phase vs One-Phase Challenges — Which Is Right for You?
The differences between two-phase and one-phase challenges and which one suits your trading style.
FUNDING
FUNDING
Is Instant Funding Worth It? A Realistic Assessment
No evaluation phase sounds great, but the truth about instant funding programs.
INSTANT-FUNDING
INSTANT-FUNDING
Is Instant Funding Worth It? A Realistic Assessment
No evaluation phase sounds great, but the truth about instant funding programs.
RISK-MANAGEMENT
RISK-MANAGEMENT
1. Expected Value and Risk Management
Why It Matters If risk is not controlled, failure in a prop firm challenge is almost guaranteed—regardless of…
RISK-MANAGEMENT
Daily Drawdown vs Max Drawdown — Key Differences
Understand the crucial difference between daily drawdown and maximum drawdown in prop trading.
RISK-MANAGEMENT
How to Calculate Your Safe Lot Size
A practical formula for determining the right lot size based on your account balance and risk tolerance.
TRADING-STRATEGY
TRADING-STRATEGY
How to Calculate Your Safe Lot Size
A practical formula for determining the right lot size based on your account balance and risk tolerance.
TRADING-STRATEGY
How to Pass a Prop Challenge — Rules That Trip Traders Up
The most common mistakes traders make and how to avoid them.