Mastering Prop Firm Trading: Building the Right Strategy for Every Firm"

Daily News for Curious Minds

Be the smartest person in the room by reading 1440! Dive into 1440, where 4 million Americans find their daily, fact-based news fix. We navigate through 100+ sources to deliver a comprehensive roundup from every corner of the internet – politics, global events, business, and culture, all in a quick, 5-minute newsletter. It's completely free and devoid of bias or political influence, ensuring you get the facts straight. Subscribe to 1440 today.

Sign up now!

Tailor your trading plan to fit the specific rules of each prop firm and increase your chances of success

Trading with prop firms offers a unique opportunity to trade with large amounts of capital, but each firm has its own set of rules that you must master to be successful. It’s crucial to understand that you can’t force your usual strategy to fit every firm. Think of it as trying to fit a square peg into a round hole—it just doesn’t work. You need to tailor your strategy around the specific requirements of the prop firm you’re trading with.

Let’s break down how you can adjust your strategy depending on the type of risk parameters and drawdowns you’re dealing with.

. Trailing Drawdown: Focus on Expansion Phases

Trailing drawdowns are tricky because they tighten your available margin as your profits increase, putting pressure on you to avoid large losses. To succeed here, you need to build a strategy that focuses on identifying expansion phases in the market—those moments when price breaks out from consolidation and trends strongly in one direction.

• Entry Strategy: Find momentum-based entries as the price starts to expand.

• Exit Strategy: Define clear criteria for when the expansion phase ends and consolidation begins. Exiting early can prevent trailing drawdowns from eating into your profits.

Tip: Always have an exit strategy to prevent overstaying your welcome in a trade. Use 1 time framing to help avoid the trailin gdrawdown

2. End-of-Day Drawdown: Go for Low-Risk, High-Reward Trades

When dealing with an end-of-day drawdown requirement, where your losses are calculated at the end of each trading session, your strategy should prioritize long-term, low-risk, high-reward trades. This is where trend-following strategies shine.

• Ideal Approach: Look for strong trends in the market and enter trades with a high reward-to-risk ratio.

• Risk Management: Since your losses are only measured at the end of the day, avoid overtrading during volatile times. Focus on solid setups with defined entry and exit points.

Tip: Use trailing stop losses to lock in profits as the trend progresses. Look for key price levels, such as Fibonacci retracement zones or moving average crossovers, to guide your entry and exit.

3. Small Daily Loss Limits: Focus on Scalping Strategies

If you’re trading under a small daily loss limit, you can’t afford to take large risks. Instead, you’ll want to use a scalping strategy, where you aim to take small, frequent profits while keeping your risk per trade minimal.

• Entry Strategy: Pinpoint precise entries using my strategies and the phases of market structure.

Risk Management: Since the goal is to limit losses, risk a tiny percentage of your account per trade (must be below 10% of Drawdown). Your profits will be smaller, but you’ll win more often and keep your losses in check.

Bulenox: 90% Off: ENDS TONIGHT !!

Use the Code JKT90

• Option 1 accounts

• Active until 9/23

• Lifetime discount: Im Not Sure 

  To obtain a discount, click the image below or the button and use the Code👇.

Tick-Tick Trader Advantages

 Payouts when you want, how you want, from day 1

• Unrestricted payouts

• Withdrawals from the First Day

• End-of-day drawdown

• Has straight to funded account’s

Straight into funded accounts discount codes:  No evaluations! 

• VTFDIRECT10 - 10K Direct Swing -Save $25.00  

• VTFDIRECT25 - 25K Direct Account - Save $50.00  

• VTFDIRECT50 - 50K Direct Account - Save $100.00

Starting now, direct accounts daily loss limit breach does not fail the account! 

You can click the picture or the botton for the discount, must also use the code👇👇⬇️

Tip for my fellow traders

Join My Live Trading Sessions

I trade live every week with full transparency. You’ll see me execute, win, and—yes—even recover from bad trading weeks. Learn how a real trader adapts to the market and builds consistent profits.

If you’re serious about improving, join our active Discord community, where we support each other’s trading journey.

If your interested in crypto, check out these newsletters👇

Jered King