Prop Firm Challenge Calculator
Plan your prop firm challenge with daily targets, risk per trade, and trades needed at various RR ratios.
Prop Firm Challenge Calculator
Calculator
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Formula: Daily Target = (Account × Profit Target %) / Trading Days | Risk Amount = Account × Risk %
Worked example — $267/day target | 4 winning trades at 1% risk with 2:1 RR
Formula
Daily Target = (Account × Profit Target %) / Trading Days | Risk Amount = Account × Risk %
The daily target divides the total profit target evenly across available trading days. Risk per trade is calculated as a percentage of the account. Trades needed is determined by dividing the target amount by the profit per winning trade (risk amount × RR ratio). This helps you plan a realistic path to passing your challenge.
Worked Examples
Example 1: $100K FTMO Challenge Plan
Problem:$100,000 account, 8% profit target, 5% daily loss, 10% total drawdown, 30 days.
Solution:Target = $100,000 × 8% = $8,000 Daily Target = $8,000 / 30 = $266.67 (0.27%/day) Max Daily Loss = $5,000 At 1% risk ($1,000/trade) with 2:1 RR: Profit per win = $2,000, Trades needed = 4 winners
Result:$267/day target | 4 winning trades at 1% risk with 2:1 RR
Example 2: $50K Account — Conservative Plan
Problem:$50,000 account, 8% target, 5% daily, 10% drawdown, 30 days.
Solution:Target = $4,000 | Daily Target = $133.33 At 0.5% risk ($250/trade) with 3:1 RR: Profit per win = $750 Trades needed = ⌈$4,000 / $750⌉ = 6 winning trades
Result:$133/day target | 6 winning trades at 0.5% risk with 3:1 RR
Frequently Asked Questions
What is a prop firm challenge?
A proprietary trading firm (prop firm) challenge is an evaluation process where traders must demonstrate their skills by meeting profit targets while adhering to strict risk management rules. Traders typically pay a fee to take the challenge, trade on a simulated account, and if they pass by reaching the profit target without violating drawdown limits, they receive a funded account to trade real capital. Popular prop firms include FTMO, MyFundedFX, The Funded Trader, and many others. Challenges usually have two phases and specific rules about daily loss limits, total drawdown, and minimum trading days.
What are typical prop firm challenge rules?
Typical rules include: Profit target of 8-10% in Phase 1 and 5% in Phase 2. Maximum daily loss of 5% of initial balance. Maximum total drawdown of 8-12% of initial balance. Minimum trading days of 4-5 days. No holding trades over weekends (varies by firm). No news trading within certain windows. Time limits range from 30 days to unlimited. Account sizes typically range from $10,000 to $200,000. Some firms have scaling plans that increase your account size after consistent profitability.
How should I plan my daily targets for a prop firm challenge?
Divide your profit target evenly across trading days as a guideline, but do not force trades to meet daily targets. For example, on a $100,000 account with an 8% target over 30 days: daily target = $8,000 / 30 = $267/day or 0.267%. However, some days will be better than others. A better approach: aim for 0.5-1% on high-probability setup days and take no trades on low-quality days. Front-load your effort — try to reach 50% of the target in the first half so you can trade conservatively in the second half. Never increase risk to catch up.
What risk per trade should I use in a prop firm challenge?
Most successful prop firm traders risk 0.5-1% per trade during challenges. At 1% risk on a $100,000 account, you risk $1,000 per trade. With a 2:1 RR ratio, each winner nets $2,000, meaning you need 4 winning trades to hit an 8% target. At 0.5% risk, you have more room for losses but need more winning trades. Never risk 2%+ per trade in a challenge — a few losses and you are too close to the drawdown limit. The key is consistency: steady small gains compound faster than boom-and-bust cycles.
What is the pass rate for prop firm challenges?
There is no audited industry figure, because pass rates are self-reported and each firm defines the number differently, so treat any single percentage you see quoted with caution. What is consistent across firms is the ranking of failure causes: breaching the daily loss limit is the most common, followed by breaching total drawdown, with running out of time on the profit target third. Traders who use disciplined risk management and accept small consistent gains fail far less often. Check the specific firm's own published statistics and rulebook rather than relying on a headline number. Preparation, practice on demo accounts, and a proven strategy are essential before attempting a challenge.
What is the difference between Phase 1 and Phase 2 of a prop firm challenge?
Most prop firms use a two-phase evaluation. Phase 1 typically has a higher profit target, usually eight to ten percent, with a time limit of thirty days. Phase 2 has a reduced profit target of around five percent with the same drawdown rules but sometimes a longer time window of sixty days. The drawdown limits remain consistent across both phases. Some firms allow unlimited time for each phase. Passing both phases demonstrates that a trader can consistently generate profits while managing risk effectively.
How does the reward-to-risk ratio affect the number of trades needed?
The reward-to-risk ratio dramatically reduces the number of winning trades required to pass. At a one-to-one ratio with one percent risk per trade, you need eight winners to hit an eight percent target. At two-to-one, you only need four winners. At three-to-one, just three winning trades can pass the challenge. Higher ratios mean fewer trades, which reduces exposure to the market and lowers the chance of hitting drawdown limits. However, higher reward-to-risk setups typically have lower win rates, so the key is finding a balance.
Should I trade every day during a prop firm challenge?
Most prop firm challenges require a minimum number of trading days, typically four to five, but there is no requirement to trade every single day. Selective trading on high-quality setup days tends to outperform forced daily trading. Many successful challenge traders only trade ten to fifteen of the thirty available days, focusing on the best opportunities. Overtrading is one of the leading causes of challenge failure because it increases commission costs and exposure to random market noise.
What instruments are best for prop firm challenges?
The best instruments depend on your trading strategy and experience. Major forex pairs like EUR/USD and GBP/USD offer tight spreads and high liquidity, making them popular choices. Gold (XAU/USD) provides larger moves but requires careful position sizing due to higher volatility. US indices like the S&P 500 and Nasdaq 100 offer clean trends during New York sessions. Avoid exotic pairs or illiquid instruments during challenges because wider spreads and erratic price action increase slippage risk and can trigger drawdown limits unexpectedly.
What is the difference between a static and a trailing drawdown limit?
A static limit is measured from the starting balance, so on a $100,000 account with a 10 percent rule the floor stays at $90,000 for the whole challenge. A trailing limit follows your equity or balance high-water mark instead: push the account to $115,000 and the floor rises to $103,500, so a slide back to $103,000 breaches the rule even though you are still $3,000 above the starting balance. Firms differ on the detail, some trailing ten percent of the new high and others trailing a fixed dollar amount equal to ten percent of the starting balance, so check which version applies before sizing trades, because a trailing floor punishes giving profit back.
References
Reviewed for accuracy by Daniel Agrici, Founder & Lead Developer · Editorial policy
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