Funded accounts: how prop firm challenges work

What a funded account is and how the firm gets paid, the loss rules with real numbers, why most people fail, and how to size so a normal losing streak cannot end the challenge.

Module 14 of 26, in the stage "Risk, testing and funded accounts". 4 lessons.

Lessons

1. What a funded account is, and how the firm gets paidExplain what you buy when you pay for a prop firm challenge, and where the firm’s money comes from. 10 min.
2. The rules, with numbers: daily loss and maximum lossWork out the loss line for the day and for the whole account, and see how a trailing limit shrinks your room. 12 min.
3. Why most people fail: the target pulls, the limits pushCompare risk per trade with the daily loss budget, and see how many losses in a row each size can take. 12 min.
4. Sizing so a normal losing streak cannot end the challengeSet a risk per trade and a personal daily stop from the challenge rules, before the first trade. 10 min.

Concepts covered

• Drawdown
• Position sizing

Keep going

• Previous module: How much to risk, and surviving losing streaks
• Next module: Testing an idea honestly before you use it
• All 26 modules and 157 lessons
• Open the first lesson in the course

General information only. It doesn't consider your objectives, finances or needs. Tickfloor holds no financial services licence and never places trades.