In this video:
00:37 – How to pass a Prop Firm Challenge.
00:56 – #1 – Don’t open a Prop firm account right now.
01:45 – #2 – You need a proven and easy to trade strategy.
03:05 – #3 – Trade your own real money account.
04:27 – #4 – Use a VPS and Trade Copier software.
05:54 – #5 – Choose the prop firm account type that suits you.
06:55 – Blueberry Markets as a Forex Broker.
07:10 – Our new look website is now live at www.TheForexTradingCoach.com
Today, I’m going to give you my top five tips so that you can easily pass a prop firm challenge. This is a really important video if you’re wanting to make money through trading the forex market. Let’s get into that more right now.
Hey there Traders! This is Andrew Mitchem here, the owner of The Forex Trading Coach with video and podcast number 628.
How to pass a Prop Firm Challenge.
Outside again here today on an absolutely stunning autumn day here in Nelson in New Zealand. And the topic of today’s video and podcast is all about how to easily pass a prop firm challenge. I’m going to give you my five top tips.
Now, the first one’s going to really surprise you, because you’re going to be expecting me to talk about some of which prop firms or trading strategy. But my number one top tip to easily pass a prop firm challenge is not to open a prop firm account.
Not for now. Certainly, by the end of this, you’re going to know why and when you should do so.
#1 – Don’t open a Prop firm account right now.
But my number one tip, honestly for now, is do not waste your time. Do not waste your money. Do not pay the prop firm. And if you do that now, if you start now, you’re going to lose confidence. You’re going to lose money. You’re going to waste your time. If you hold off, you are going to pass a prop firm challenge in the end.
But if you start straight away, you’re almost certainly going to end up losing your money and failing. So my number one tip is do not open a prop firm challenge right now.
#2 – You need a proven and easy to trade strategy.
My number two tip is, of course, you do need a good strategy. And now the strategy needs to be something that’s proven. Proven across different markets, different trading conditions, different time frame charts.
It needs to be something that aligns with you. Whether it’s the time that you can trade, the time of day, the amount of time it requires, does it actually fit with you? Do you understand exactly what the strategy and the logic is? So that’s really important. But also the key to passing a prop firm challenge, once you know what you’re doing, is not to hit the drawdown level.
So you need to be really sure that the strategy and the way that you trade meets their drawdown criteria. So you need to trade with really low risk per trade and have very low drawdowns, and you need consistency in your profitable trades as well. So it’s not just about here’s a wonderful strategy. It needs to be something, you know, if you hit like a 5% drawdown in a day or so because you’re risking too much while you’re going to fail the prop firm challenge, regardless of how good your strategy is.
So you need to really focus on reducing risk per trade and knowing what you’re doing, and when to take the trade and how to keep that risk low.
#3 – Trade your own real money account.
So third thing would be once you have that strategy in place, you need to get on to a live account of your own money. It needs to be your real money, your live account. It doesn’t need to be big, but it needs to be a live account.
And the reason is, is that the psychological change between a demo and the live is huge. Now, it doesn’t need to be a massive account. I said it could be like a few thousand dollars, but it just needs to be real money. You need to bring emotions into your trading. You know, when you have losing trades, you’re going to, you know, it’s going to hurt.
When you have winning trades, you’re going to feel fantastic. So you’ve got to understand those emotions. But also you’ve got to try and control those emotions so that those drawdowns and those losing trades and those highs from the winning trades become almost neutralized. And I wouldn’t suggest you go to a demo because a demo doesn’t mean anything and demo doesn’t teach you the psychological side of making or losing real money, your money.
So tip number three get on to a live account. You then need to also prove that with your live account, you can become consistent. Now you also need to keep that drawdown very low and treat it though it’s a bigger account as well. So show up, be consistent, keep your drawdowns very, very low. And so prove to yourself first on your money that you can trade properly.
#4 – Use a VPS and Trade Copier software.
The fourth thing you should then do is seek out a virtual server and trade copier software. Now, the reason I say that is because it then makes trading one account or multiple prop firm accounts, whether they be on the demo stage or a live account, different account sizes, different denominations. It makes it very, very easy. Now you think about this in terms of the reality of trading.
You’re out there trading your, let’s say, 2, 3, 4 or $5000 account live and you’re saying, well, I’m doing okay. I’ve passed Andrew’s tip number three and it’s all good. The trouble is, if you then start on a $100,000 demo or $100,000 live account with a prop firm, that’s a massive change in your mental approach.
So you don’t want to be trading directly on that prop firm account. What I suggest you do is you trade your life master account still, and you have those trades copied behind the scenes automatically onto your prop firm account or prop firm accounts. You know, just imagine you’ve got five prop firm accounts open. You don’t want to be trading every single one of them individually, placing trades, calculating risk lot sizes, entering stops, moving positions, all that type of thing.
You don’t want to do that. Trade your one small live account properly, knowing that behind the scenes it’s getting copied through a trade copier software and a virtual server onto your prop firm account or accounts. Behind the scenes makes life so much easier.
#5 – Choose the prop firm account type that suits you.
And then finally, my fifth top tip, once you’ve done all those and you’ve mastered stage one before, is you do then of course go on to a prop firm account.
Now, there are various prop firm accounts out there. And like all things in life, some are better than the worse than others. Some will allow you to go on to one demo and then straight onto live once you pass the demo, some have two stage challenges, some allow you to go straight to live. You really need to figure out what is best for you in terms of the account size, how many accounts you’re going to go through, which prop firms you’re going to go through, etc. like that.
I can certainly give you some ideas and suggestions, but really, once you know how to trade, you then need to decide which prop firm account and company you are willing to go with.
So those are my five top tips there. And you do all that and you can then start to easy pass prop firm accounts, quite comfortably, like we have so many of our clients doing on a regular basis.
Blueberry Markets as a Forex Broker.
If you’re out there looking for a good broker, I can highly recommend Blueberry Markets. They have a they also have their own prop firm company as well, Blueberry Funded. But have a look at Blueberry Markets throughout there looking for a good broker.
Our new look website is now live at www.TheForexTradingCoach.com
And lastly, have a look at our new website, TheForexTradingCoach.com. Our new look website has now gone live. Hope you like the changes and improvements with modernized everything made it a little bit more, sort of, cool looking, you know, it’s more efficient, more information on there, easier to navigate and just a little bit sort of modernized. It kind of needed it. And now it’s had that facelift. So, hopefully you like that.
And, if you’d like to join us, of course, you’ll find the joining link on that website. And joining us and learning how to trade properly first is also going to be your shortcut to passing a prop firm challenge, because we have so many people that trade prop firm successfully, because of the way that we do trade and our strategy and the support that we have and the help and longevity and proven strategy across multiple markets and, and such a long time within the markets, you know, we celebrate our 17th birthday, this year in May 2026, in a few months time.
So that’s it for now. Prop firms are a great way. They’re a great option of making money. But, honestly, look at point number one, the best thing you can do to start with if you don’t have the other points sorted, is do not open that prop firm account just for now. Get points two, three and four sorted and then go to the live account or the demo account with a prop firm.
This is Andrew Mitchem here at The Forex Trading Coach. I see you this time next week. Bye for now!
Episode Title: #628: Before You Buy a Prop Firm Account, Watch This