All courses🛡️ Risk · Level 5.1
💼 Prop Firm Mastery
How prop firms work, how to pass the challenge, the drawdown discipline that wins payouts, and the path from funded to consistent income.
6 lessons ~27 min read
010203040506
What a prop firm is (and why it exists)
Identify the firm’s revenue model and what it implies about alignment Explain what "funded" usually means structurally and why the rules are strict Treat the fee as an option on capital whose value depends on a pass probability Choose a firm whose rules fit your measured drawdown rather than the cheapest
Challenge rules decoded
Distinguish the profit target as a deadline from the drawdown as a wall Identify consistency, news, weekend and lot-size rules buried in the terms Convert the profit target into R and test feasibility against your expectancy Explain why time limits induce the behaviour that breaches drawdown
Prop risk discipline — the drawdown math
Distinguish static from trailing drawdown and calculate the difference Check whether a trail runs on equity or balance and whether it ever stops Compare your worst historical drawdown against the rule before paying Adjust risk, profit-taking and overnight exposure under a trailing rule
From funded to consistent payout
Explain why the funded account is psychologically harder than the challenge Keep risk percentage unchanged after passing, and explain why Withdraw early and regularly to limit counterparty exposure Model monthly income including a normal losing month before relying on it
The daily loss limit is a clock, not a wall
Explain why the daily limit is usually measured on equity, including open trades Identify the exact moment a floating loss becomes a rule breach Compute your remaining daily allowance at any point in the session Set a personal stop-for-the-day well inside the firm’s limit
Reading a rulebook in twenty minutes
Apply a fixed checklist to any firm’s terms in a single sitting Find the clauses that are usually placed outside the main rules page Compare two firms on the terms that actually matter to your style Decide against a firm on documentation quality alone
Final challenge
Answer all 12 questions. You need 10 of 12 correct to unlock the certificate — 2 can be wrong. Retakes are unlimited, so take your time.