How do I design a prop firm challenge?

A design sequence:

1. Audience: new traders, experienced intraday traders or swing traders.
2. Structure: one-step, two-step or instant funding.
3. Loss limits: daily and overall, and whether any trail.
4. Objectives: profit target, minimum trading days, perhaps profitable days or consistency.
5. Behaviour rules: weekend holding, trading hours, lot limits, minimum hold time.
6. Model: estimate pass rates and payouts, adjust prices.
7. Write it up with worked examples.

Test the rules on real accounts before selling. In PropExecutor's visual rule builder you assemble a rule set from a catalogue, each rule with its exact calculation described, and attach it to one or more account types.

A worked starting point

A common first design for a one-step $25,000 challenge: 10% profit target, 5% daily loss limit, 8% to 10% static maximum loss, minimum three trading days, weekend holding allowed. From there, adjust one variable at a time and model the effect on pass rate and payouts before selling.

Test it yourself

Trade the challenge on a test account for a week before launch.