Proprietary trading firms have made financial markets accessible to newbie traders by offering skilled traders access to massive volumes of capital. They dont have to risk their own money and yet can generate profit out of it. Aspiring traders must pass a prop firm challenge to initiate the trading process with these prop trading firms. Mostly, it is in a one-step or multi-step evaluation process. Successfully passing prop firm challenges can significantly advance your trading career.
This guide will explore how to pass the one-step evaluation in prop firms. We’ll delve into essential trading strategies, profit targets, risk management techniques, and practical tips to help you successfully pass and maximise your earnings.
The One-Step Challenge
This is a single-step challenge that each prop firm designs using its criteria and rules. The basic aim of this test is to evaluate or assess the skills of a trader. If he passes the trial, he will only be considered eligible for the funded account. As this is a single-step/phase trial, its profit targets are not massive. At the same time, the drawdown limits are also limited. The traders have to not only follow the rules and regulations set by the company but also need to showcase exceptional performance in the given period. The main goal is to generate a certain percentage of the total profit.
Maximising Profits in the Challenge
Here are some ways you can make your journey during the evaluation process with the Prop Firms super smooth and swift while showcasing exemplary performance:Â
- Learn The Rules and RegulationsÂ
The first step towards showcasing exceptional performance in this challenge is to clearly understand all the rules and regulations set by the prop firm. Without going through them in detail, generating profit on the demo account is impossible. The main rules that you should be well aware of include the profit target (The % of the profit you need to generate on the initial amount), maximum drawdown limit (The overall loss limit that you can endure and the daily loss limit), the period within which you need to manage the profit generation.Â
Once you correctly follow the rules set by the One step challenge prop firm, your chances of showcasing exemplary performance and generating the required profit will increase exponentially.Â
- Know The Evaluation Process
Though the basic framework of all one-step challenges is the same, you must still understand your chosen firm’s evaluation process. Once familiar with the process, you should jump at the opportunity to participate in a trial. Otherwise, it will just be a disqualification, adding negative reviews to your profile.Â
- Develop A Plan/ Strategy
Like any other activity in life, the one-step challenge requires a well-prepared strategy to make things work. You can’t expect to achieve the necessary results without a proper plan. Your trading style and strategy should be well-aligned with your plan. Whether a swing or day trader, you should always have a robust approach to playing a good game in the market.Â
The plan must include a well-crafted risk management strategy. This strategy ensures that you do not end up with extensive losses but have a proper way to avoid them. It also ensures that the traders can stick to the risk limits set by the prop firm. If you want to achieve the profit targets without compromising on risk management, keep a solid plan in mind.Â
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Keep Track of Actions
You must keep track of all your trade actions and the profit you generate. Even if you lose, you must journal it appropriately. This will help you track your performance and switch to a better strategy.
Final Thoughts
A good plan, approach, and solid ambition are the keys to maximising profit in the one-step challenge by prop firms. Understanding every rule of the prop trading firm is necessary as it will help you avoid future misunderstandings. Alongside this, manually or through any online trading platform, properly journaling your trade activities would also help you make informed decisions. With time, you will learn to make the right choices in this volatile market. Avoiding emotional trading, and managing emotions help traders stick to their strategies and make profits without faltering.