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How to Prepare Your Challenge

25 min readComplete strategic guide

Preparation is 70% of your success. A prop firm challenge isn't just a trading test, it's a test of discipline, risk management and psychology. This guide will give you all the keys to maximize your chances of success on the first try.

Traders who succeed in their challenge on the first attempt have one thing in common:they prepared meticulously. Here's how to do the same.

Mental and Psychological Preparation

1. Develop the Right Mindset

Goal: Pass, don't impress

Aim for the minimum required (8-10%), not exceptional performance

Traders who fail often aim for 20-30% instead of 10%

Extreme patience

You have 30-60 days, use them all if necessary

Not rushing = 80% more chances to succeed

Emotional detachment

It's a demo account, not your personal money

Treat each trade as an exercise, not an investment

2. Stress and Pressure Management

Relaxation Techniques

  • • 10 min meditation before trading
  • • 4-7-8 breathing between trades
  • • Regular breaks every 2 hours
  • • Daily physical exercise

Routine Anti-Stress

  • • Trading at the same hours
  • • Environnement calme
  • • No excessive caffeine
  • • Emotional trading journal

⚠️ Warning: 90% of failures are due to emotional decisions. If you feel frustration rising, STOP trading for the day.

Technical Preparation

1. Platform Configuration

MetaTrader 4/5 (Forex)

  • ✓ Install all your favorite indicators
  • ✓ Configure chart templates
  • ✓ Set up hotkeys for quick orders
  • ✓ Enable price alerts
  • ✓ Install a risk management EA

NinjaTrader/Tradovate (Futures)

  • ✓ Configure ATM strategies
  • ✓ Set DOM settings
  • ✓ Install volume profile indicators
  • ✓ Configure workspaces
  • ✓ Test data feed connection

💡 Take Profit Trader offers the Tradovate platform for futures trading!

2. Backtesting and Validation

100+

Minimum trades

60%

Minimum win rate

1:1.5

Minimum Risk/Reward

Validation Checklist:

Strategy tested on minimum 3 months of data
100% mechanical entry/exit rules
Stop loss defined before each trade
Maximum 3 trades per day
Maximum risk 1% per trade
Profit factor > 1.5
Maximum drawdown < 5%

Trading Plan for the Challenge

Conservative Strategy (Recommended)

Phase 1 (30 jours)

Target:8-10%
Profit/day:0.3-0.5%
Risk/trade:0.5%
Trades/day:1-2 max
R:R minimum:1:2

Phase 2 (60 jours)

Target:5%
Profit/day:0.1-0.2%
Risk/trade:0.25%
Trades/day:1 max
R:R minimum:1:3

✅ Advantages: 95% success rate, minimal stress, large margin of error

Sample Week 1 Calendar

DaySessionTargetAction
MondayLondon/NY+0.5%1-2 trades max
TuesdayLondon+0.3%1 quality trade
WednesdayNY0%Observation only
ThursdayLondon/NY+0.5%1-2 trades max
FridayLondon+0.2%1 trade, close all
Weekly Total+1.5%5-6 trades

Strict Risk Management

The 10 Golden Rules

🔴Never more than 1% risk per trade
🔴Stop loss BEFORE entering position
🟡No trading during major news
🔴Maximum 2% risk per day
🔴No revenge trading after a loss
🟡Close all positions on Friday
🔴No martingale or averaging down
🟡Stick to the plan, no improvisation
🟡Trading journal mandatory
🔴Stop trading after 2 consecutive losses

Quick Position Size Calculation

Simple Formula:

Position Size = (Account × Risk%) / (Stop Loss in pips × Pip Value)

Forex Example (10K account)

  • • Risk: 1% = $100
  • • Stop: 20 pips
  • • Pip value: $1 (mini lot)
  • → Position: 0.5 lots

Futures Example (50K account)

  • • Risk: 0.5% = $250
  • • Stop: 10 ticks
  • • Tick value: $12.50 (ES)
  • → Position: 2 contracts

⭐ With Take Profit Trader, trade up to 20 contracts on a 150K account!

15 Fatal Errors to Avoid

Starting the challenge on the same day as purchase

Almost guaranteed failure

Trading without a detailed written plan

Almost guaranteed failure

Aiming for 20% instead of 10%

Increasing size after a loss

Almost guaranteed failure

Trading all pairs/instruments

Ignoring consistency rules

Trading during economic announcements

Moving stop loss in the negative

Almost guaranteed failure

Opening multiple simultaneous positions

Not keeping a trading journal

Copying other traders' trades

Changing strategy mid-course

Trading when tired or emotional

Almost guaranteed failure

Neglecting daily drawdown

Almost guaranteed failure

Rushing phase 2

Ultimate Checklist Before Starting

Preparation (1 week before)

Strategy backtested on 100+ trades
Written and printed trading plan
Position calculator configured
Platform tested and configured
Trading hours defined
Quiet trading space prepared

D-Day

Well rested (minimum 8h sleep)
No external stress (work, family)
Economic calendar checked
Daily objectives noted
Risk parameters configured
Clear and positive mindset

Each Trade

Setup validated according to plan
Risk/Reward calculated (min 1:2)
Stop loss placed before entry
Position size verified
No negative emotions
Screenshot for journal

📚 Essential Resources and Tools

Free Tools

  • TradingView: Technical analysis
  • Myfxbook: Track record
  • Forex Factory: Economic calendar
  • Babypips: Position size calculator
  • FXStreet: Real-time news

Support Communities

  • • Official Discord of your prop firm
  • • Reddit r/FundedTraders
  • • Telegram prop firm groups
  • • Specialized YouTube channels
  • • ForexFactory forums

Templates and Documents

Trading Plan Template

Word/PDF Document

Excel Journal

Automatic tracking

Risk Calculator

Spreadsheet

Optimal Preparation Timeline

J-30

1 Month Before

Develop and backtest your strategy. Minimum 100 historical trades.

J-14

2 Weeks Before

Trading on demo account with the SAME rules as the challenge.

J-7

1 Week Before

Finalize the plan, configure platform, review the rules.

J-1

Challenge Eve

Complete rest, no trading, mental preparation, early bedtime.

Ready to Dominate Your Challenge?

Use our tools to maximize your chances of success