How to Pass a Challenge in 10 Days

Introduction

Hey everyone, quick gut check. If trading a prop evaluation feels like trying to parallel park a bus on a hill, take a breath. A prop firm challenge is simply a structured test to show that you can follow institutional-style risk controls while making responsible decisions. If you pass, you’ll usually manage a simulated funded account with a profit split without risking a large amount of your own money. Think of it as a driving test for traders: follow the rules, respect the limits, and you’re set.

Firms usually run these challenges on simulated platforms that use real-time market data. The fills, spreads, and slippage may differ slightly from live accounts, but the discipline, strategy, and data-driven thinking you build here are exactly what you’ll need later when trading real capital.

Prop Firm Challenge

A prop firm challenge measures four key abilities: achieving the profit target, staying within the daily loss limit, staying under the maximum drawdown, and maintaining a minimum number of trading days. Most firms use two stages: the Challenge (with a higher target) and the Verification (with a slightly lower target but the same risk rules).

Traders attempt these challenges primarily to gain access to capital, boost credibility, and scale their trading. Managing $50,000 or $100,000 with controlled risk can multiply your results faster than a small personal account if you respect the process.

How Prop Challenges Work (Step-by-Step)

Reputable firms set clear rules. You’ll typically see a 10% profit goal in Phase One with a 5% daily loss limit and an 8–10% maximum drawdown, followed by a 5% target in Verification. Minimum trading days are often required to ensure consistency.

Some firms also restrict trading during high-impact news or holding trades over weekends. They observe your behavior closely, looking for stable risk use, consistent position sizing, and adherence to a clear plan.

Pro tip: don’t think of the rules as obstacles; they’re guardrails that keep you on the road to success.

Two-Step vs One-Step vs Instant vs Free

• Two-Step Challenges: The standard format with a higher initial target and a lower verification target. Ideal for traders who prefer structure and refundable fees.
• One-Step Challenges: Quicker, but with tighter risk limits and higher fees. Suited to traders with refined, low-variance systems.
• Instant Funding Models: Offer immediate access to a simulated funded account after paying a higher fee. Expect less favorable payouts and additional conditions.
• Free Challenges: Let you practice without paying, but they usually offer smaller account sizes or tougher requirements.

Two-Step Challenges Explained

In the first phase, you aim for a target of around 8 to 10 percent without breaching daily or overall loss limits. In the second phase, the target often drops to about 5 percent, but the rules stay the same. This structure helps prove both profitability and discipline, showing that your strategy works consistently.

One-Step Challenges Explained

One-step challenges skip verification entirely. The advantage is speed, but the trade-off is stricter rules and higher costs. This setup is best for traders who already have a strong track record and thrive under pressure.

Instant Funding Models

Instant funding gives you access to a simulated funded account immediately after paying a higher fee. Payout ratios are often smaller, and firms may impose extra limits such as forced breaks or restricted drawdowns. This model appeals to experienced traders who prefer to skip evaluations.

Core Rules That Matter

• Profit Target: The required profit percentage, often 10 percent in Phase One and 5 percent in Phase Two.
• Maximum Daily Loss: The most you can lose in one trading day, often set at 5 percent.
• Maximum Drawdown: The overall loss limit, usually between 8 and 10 percent.
• Minimum Trading Days: A requirement to prevent passing through one lucky trade, typically at least four days per phase.

FTMO Example: Objectives & Time Rules

FTMO, one of the most recognized firms, uses a 10 percent target in the Challenge and a 5 percent target in Verification, with the same drawdown limits in both phases. The standout feature is that FTMO no longer enforces a strict time limit. Traders can take as long as they need as long as they remain active for at least four trading days in each phase. This change helps reduce unnecessary psychological pressure.

FTMO also notes that evaluations occur in simulated environments based on real market data. This transparency strengthens trader trust.

Demo vs Live Trading: What to Expect

Most prop firm evaluations take place on simulated accounts with live market data feeds. Some differences will appear compared to real brokerage executions, especially during fast moves. Spreads can widen, fills may lag, and volatility spikes can behave unpredictably. Understanding this helps manage expectations and prepare for live conditions.

Free vs Paid Challenges

Free challenges are ideal for practicing without risk. The trade-off is smaller account sizes and stricter requirements. Paid challenges usually unlock larger capital allocations, faster evaluations, and better payout terms. For committed traders, the investment often pays off in long-term growth.

Legitimacy & Trust

Before paying any fee, research the firm’s reputation, payout policies, and user feedback. Look for clear terms, verified payments, and responsive customer support. Regulators have begun scrutinizing certain firms, which highlights the importance of transparency. Always read the fine print and choose firms that are upfront about all rules and fees.

Key Passing Criteria Beyond Profit

Many traders assume success is purely about hitting the target, but firms also evaluate consistency, risk management, and professionalism. They want traders who display patience, follow rules, and avoid large emotional swings. Passing is about control, not luck.

Can You Pass in 10 Days?

Yes, it’s possible. A disciplined trader with a consistent system and solid risk management can achieve the target within 10 days. However, rushing usually leads to breaking rules. Consistency beats speed every time.

Step-by-Step 10-Day Success Plan

Day 1–2: Know the Rules
Write down every rule including loss limits, drawdowns, and prohibited practices. Keep this checklist visible at your desk.

Day 3–4: Use a Proven Strategy
Only use strategies that you have tested and refined. Your setups should have clear entry and exit criteria and a favorable risk-to-reward ratio.

Day 5: Apply Strict Risk Management
Risk between 0.5 and 1 percent per trade. Always set stop-losses and realistic targets. If you lose two or three trades in a row, stop for the day.

Day 6: Journal and Review
Record your reasoning, emotions, and performance after every trade. Use this data to identify strengths and weaknesses.

Day 7: Adapt to Market Conditions
Check an economic calendar each morning and reduce risk during volatile periods or news events.

Day 8: Focus on Consistency
Consistency does not mean trading daily. It means sticking to your plan and waiting for quality setups.

Day 9: Evaluate and Adjust
At the end of the day, analyze your win rate and risk-to-reward ratio. Make only small, logical adjustments.

Day 10: Protect Your Progress
If you are close to your goal, reduce trade size and focus on preservation. Finishing safely is more important than finishing fast.

Risk Management That Works

For a $50,000 account with a 5 percent daily loss limit, you should risk no more than $250 to $500 per trade. For a $100,000 account, risk between $500 and $1,000. A simple rule is to stop after three consecutive losses in a day. This method helps protect both your capital and your mindset.

Choosing the Right Firm (Checklist)

• Transparent rules and objectives
• Clear payout schedules
• Reasonable time limits
• Honest communication and quick support
• Realistic drawdown structures
• Solid reputation supported by verified reviews

Common Mistakes That End Challenges

Overtrading, ignoring risk limits, moving stops, and trading emotionally are among the fastest ways to fail. Stick to your plan, respect the rules, and accept small losses as part of the process.

Tools & Resources You’ll Actually Use

• Charting Platforms: TradingView, MetaTrader
• Journaling Tools: Edgewonk, TraderVue
• Calendars: Economic news calendars to manage event risk
• Notes and Screenshots: Keep records of setups, emotions, and lessons

Using technology properly gives structure to your process and helps you grow faster.

Scaling Plans & Long-Term Growth

Many firms offer scaling plans that allow traders to manage larger capital as they show consistency. Build a profit buffer before scaling and always maintain enough room under drawdown limits to prevent unnecessary stress.

Trade During News or Not?

If a firm allows trading during news events, use smaller position sizes and tight stops. If it prohibits news trading, wait for calmer markets. The key is respecting the rule set you agreed to.

Overnight & Weekend Holding Rules

When holding positions overnight or over weekends, always factor in gap risk. Reduce size or hedge accordingly. Protecting capital is always the top priority.

Verification: What Firms Look For Beyond Profit

Firms monitor position size consistency, healthy risk-to-reward ratios, and the absence of oversized trades that carry the entire profit. They prefer steady, disciplined trading patterns that can be repeated at scale.

A Realistic Payout Mindset

Think long-term. Instead of aiming to double an account in one month, aim to withdraw a steady percentage of profits while keeping enough margin to protect against drawdown. Stability earns trust and longevity.

FAQ

Is a prop firm challenge legit?
Yes, legitimate firms are transparent about their rules, payout methods, and trading conditions. Always research before joining.

Does FTMO really have no time limit?
Yes. FTMO allows unlimited time to complete each stage, provided you trade at least four days per phase.

Are prop firm accounts real or demo?
Evaluations are simulated with live market data, which ensures a realistic but controlled trading environment.

Can I pass in 10 days?
Yes, if you apply consistent strategies, follow risk limits, and stay disciplined.

What’s a safe per-trade risk?
Between 0.5 and 1 percent of account size per trade.

Should I trade news?
Only if allowed by the firm and only with reduced risk.

Action Plan Template (Copy/Paste)

• Review rules and news before trading
• Define your setups and entry conditions
• Record all trades with emotional notes
• Stop after two or three consecutive losses
• End each day by reviewing key metrics

Mini-Glossary

• Maximum Daily Loss: The most you can lose in one trading day.
• Maximum Drawdown: The largest total loss you can sustain before failure.
• Trailing vs Static Drawdown: Trailing drawdown moves with equity increases, while static remains fixed.
• Verification: The second phase of most two-step challenges, usually with lower targets.

Conclusion: Your Funded Future

You don’t need a secret indicator or divine intervention to pass a prop firm challenge. You need a solid plan, small consistent risks, and discipline. The prop firm challenge is not just about gaining access to a funded account; it’s about proving that you can protect and grow capital responsibly.

Call to Action: Ready to take your next step? Start with a free practice challenge or review FTMO’s official rules, then apply the 10-day plan above and get started.