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Prop firm rules explained: drawdown, daily loss and consistency

Most failed prop challenges break a rule rather than run out of profit. The rules that matter most are the maximum drawdown (trailing or static), the daily loss limit, the consistency rule and limits on news trading and weekend holding. Each guide here works one rule through with numbers.

11 guides on rules explained

  1. Prop Firm Drawdown Explained: Daily Loss, Trailing and StaticThe same “6% max loss” can mean three very different rules. Learn to read a drawdown before it reads you.3 min read ·
  2. Prop Firm Payouts and Profit Split: How They Really WorkA headline split is only the first number. Eligibility, caps and timing decide what reaches your wallet.3 min read ·
  3. Prop Firm Consistency Rules Explained (With Examples)Consistency rules stop one lucky day from passing an evaluation. Here is the arithmetic and how to plan around it.2 min read ·
  4. Prop Firm News Trading Rules: Blackouts, CPI and FOMCMany prop firms limit trading around major economic releases. Here is how those rules work, why they exist and how to handle CPI and FOMC days either way.6 min read ·
  5. Prop Firm Weekend Holding Rules: Crypto 24/7 vs CFD ClosesWhether you may hold over the weekend depends on what you trade and where. Here is how the rules differ, and how to size for the weekend either way.5 min read ·
  6. Prop Firm Hedging and Copy Trading Rules: What Is AllowedHedging and copy trading are allowed in some forms and banned in others. The line usually runs between managing your own risk and gaming the evaluation.6 min read ·
  7. Prop Firm Leverage Explained: Why Size, Not Leverage, Sets Your RiskLeverage decides how much margin a position ties up. Your size and your stop decide what it can lose.6 min read ·
  8. Prop Firm Reset Explained: What Happens After a BreachA reset turns a breached challenge into a fresh attempt. The price, the timing and your state of mind decide whether it is worth it.5 min read ·
  9. Prop Firm Stop Loss Rules: Mandatory Stops and Why They MatterSome firms make a stop mandatory and many leave it to you, but every firm’s loss limits punish a trade that has none.6 min read ·
  10. Prop Firm Prohibited Strategies: Martingale, Grid, HFT and MoreMany prohibited strategies exploit the simulation, remove risk or replace the trader. Knowing which is which keeps a passed account payable.7 min read ·
  11. How Is Daily Drawdown Calculated? Balance, Equity and Reset TimesDaily drawdown depends on three choices: the baseline, what counts against it, and when the day resets.6 min read ·

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Educational content, not investment advice. QATS evaluations and Funded accounts are simulated; Live Funded is real capital by separate review, and payouts depend on eligibility, verification and the applicable agreement.