Which rules should a prop firm challenge have?

Quick answer

Most challenges combine a profit target, a daily loss limit, a maximum loss limit and minimum trading days. Common additions are a trailing drawdown, a consistency rule, lot size or position limits, weekend holding restrictions and news trading restrictions. Fewer, clearer rules usually produce fewer disputes.

Detailed answer

The core four:

  • Profit target: for example 8% to 10% for a one-step challenge.
  • Daily loss limit: commonly around 4% to 5%.
  • Maximum loss limit: commonly around 8% to 10%.
  • Minimum trading days: a few distinct days with trades.

Frequent additions:

  • Trailing drawdown instead of, or alongside, a static maximum loss.
  • Consistency: no single day dominates profit.
  • Exposure limits: maximum lots or open positions.
  • Timing: weekend holding, trading hours.

The percentages above are common market patterns, not recommendations. PropExecutor's Starter plan includes the core rules (profit target, daily loss, max loss and related essentials); Basic adds the advanced catalogue, including trailing drawdown and consistency.

Adding rules carefully

Each extra rule is another thing a trader can break and another source of disputes. Add a rule only when it addresses a specific risk you have seen or expect, such as weekend gaps or very short trades, and explain why it exists on your rules page.

Keep the core consistent

Use the same core four across all account sizes, so traders moving between sizes know what to expect.

PropExecutor team · Updated

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