Rules Guides

Prop Firm Rules Guides

Plain-English guides to the rules that most often catch traders out in funded trading evaluations and funded accounts.

GuideWhy it matters
Drawdown rules explainedDrawdown is usually the account-killer. Understand how it is calculated.
Trailing drawdownExplains why open profit can still create failure risk.
Static vs trailing drawdownHelps compare simpler fixed limits against moving limits.
Daily loss limitDaily equity limits can fail an account before max drawdown does.
Payout rulesPassing is not the same as being eligible to withdraw.
Payout bufferSome firms require profits above a safety buffer before withdrawal.
Consistency rulesA big winning day can delay passing or payout eligibility.
Profit targetShows how target size interacts with risk limits.
Minimum trading daysPrevents passing or payout too quickly on some accounts.
News trading rulesImportant for volatility and event-driven strategies.
Copy trading rulesMany firms restrict mirrored, group or third-party strategies.
Platform and data feesExtra costs can change the true price of an account.
Evaluation vs funded accountRules may change after passing.
Contract limitsPosition limits can stop a strategy scaling as expected.