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.
