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01 Jan 2025

How to Prepare for a Prop Firm Evaluation

1. Understand the Evaluation Rules
Study the firm’s requirements, such as profit targets, drawdown limits, trading days, and allowed trading styles.
Clarify any ambiguous terms to avoid accidental violations.

2. Develop a Solid Trading Plan
Create a plan outlining your entry and exit strategies, risk management, and daily goals.
Ensure your plan aligns with the firm’s rules, especially regarding risk limits.

3. Master Risk Management
Use proper position sizing to stay within drawdown limits.
Never risk more than 1-2% of the account on a single trade.

4. Focus on Consistency
Aim for steady profits rather than taking excessive risks to hit targets quickly.
Maintain a consistent strategy that aligns with your trading strengths.

5. Backtest and Practice
Backtest your strategy to ensure its reliability over time.
Use demo accounts or simulated evaluations to build confidence.

6. Choose the Right Trading Hours
Trade during high-volatility sessions that suit your strategy, such as the London or New York sessions.
Avoid overtrading during slow market conditions.

7. Stay Disciplined and Patient
Stick to your plan and avoid impulsive trades.
Don’t rush to meet targets; focus on following the rules.

8. Embrace Psychology
Manage emotions like greed or fear, which can derail your performance.
Take breaks to maintain mental clarity and avoid burnout.

9. Monitor and Review Your Trades
Keep a trading journal to review your performance.
Analyze mistakes and refine your approach daily.

10. Be Prepared for Challenges
Accept that you may not pass on your first attempt and use failures as learning experiences.
Stay persistent and continuously improve your skills.

By staying disciplined and well-prepared, you can increase your chances of passing a prop firm evaluation and securing a funded account.

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