Prop firm rules are the foundation of funded trading. Understanding them properly is the difference between keeping your account and losing it on Day 1.
Core Rules to Master
- Daily Drawdown: The maximum loss allowed in a single 24-hour period.
- Maximum Drawdown: The total total loss allowed on the account's starting balance.
- Consistency Rules: Some firms restrict "lucky trades" by requiring steady performance without single trades dominating profits.
- News Trading: Many firms restrict trading during high-impact events like NFP or FOMC.
- Minimum Trading Days: Ensures you didn't just get lucky in one trade, but can repeat results.
Final Verdict
These rules are not designed to stop you from winning; they are designed to ensure long-term sustainability for both the firm and the trader. Master the rulebook before you master the chart.