A checklist before the first trade of a prop challenge

[FXS London Scalper]

Failing a challenge on day two because of a rule you knew but didn't check is a common story. A written checklist before the first trade helps.

• Daily loss limit: how is it measured, from balance or equity, at what time does the day reset, and in which time zone?
• Maximum drawdown: static or trailing?
• News rules: which events are restricted, how many minutes before and after?
• Weekend holding: allowed?
• Lot size limits per instrument?
• Minimum trading days?
• EA or copy-trading rules?
• Calendar time zone in your platform set correctly?

Then write your own stricter limits. A worked example: if the firm's daily limit is 5%, stop for the day at 3%. That leaves room for slippage on an open trade at the moment you hit your limit.

Print it, tick each line, and keep it for the length of the challenge. Firms update their rules, so recheck for each new account.

What would you add?

[Shadow Trader]

Worth adding one item that comes up a lot: what counts as a trading day. Some firms require a minimum number of days, but a day may only count if at least one trade is opened and closed within it, or if the trade meets a minimum size or holding time. A trader who opens a tiny position just to tick the box can find it doesn't count at all.

The time zone point on the list deserves extra emphasis too. The firm's daily reset is often set to the server time, which may not match your local clock or even your platform's display. A loss taken just before the reset and another just after can land in different days, or the same day, depending on which clock is used. It's worth writing the reset time down in your own local time and checking it once with a small test position before the challenge really starts.

Finally, the checklist is most useful if it is also used after the first trade, not only before it. Running through it again at the start of each day for the first week catches the misreadings while they are still cheap.