WHY RULES MATTER MORE THAN STRATEGY
Many traders spend months perfecting their strategy but spend 20 minutes reading the prop firm rules. This is backwards. A great strategy executed inside firm rules builds a funded career. A great strategy executed outside firm rules = instant disqualification.
This guide covers every major rule type you'll encounter across all futures and forex prop firms.
RULE 1 — PROFIT TARGET
The minimum profit you must achieve to pass the evaluation phase. This is always expressed as a percentage of your starting account balance.
| Account Size | Typical Target (8%) | Example Firms |
|---|---|---|
| $25,000 | $2,000 | Alpha Futures, Bulenox |
| $50,000 | $4,000 | Apex, Topstep |
| $100,000 | $8,000 | FTMO, FundingPips |
Targets range from 6% to 10% across different firms and plan types. Lower targets are easier to achieve but often come with stricter drawdown rules.
RULE 2 — MAX DRAWDOWN (TRAILING VS STATIC)
The maximum amount your account can lose before disqualification. There are two types:
Static Drawdown
Your loss limit is fixed from your starting balance. A 10% static drawdown on $100K means you can never go below $90K — regardless of how much profit you make. More common at forex prop firms (FTMO, FundingPips).
Trailing Drawdown
Your loss limit follows your account balance upward. If you grow from $50K to $55K, your floor moves from $47.5K to $52.5K. More common at futures prop firms (Apex, Topstep, Alpha Futures).
RULE 3 — DAILY LOSS LIMIT
The maximum amount you can lose in a single trading day. If you hit this limit, you must stop trading for the day — even if it's 9:35 AM.
- Typical range: 2-5% of account balance
- Some firms: No daily loss limit (check our compare table and filter "No DLL")
- The daily limit is separate from the max drawdown — hitting the daily limit one day doesn't disqualify you
RULE 4 — CONSISTENCY RULE
This rule prevents traders from passing on one lucky day. The most common version: no single trading day can represent more than 30% of your total profits.
Example: You've made $3,000 total in your evaluation. The consistency rule means no single day can show more than $900 profit ($3,000 × 30%). If you make $1,200 on one day, that day now represents 40% — rule violation.
RULE 5 — MINIMUM TRADING DAYS
Some firms require a minimum number of trading days before you can pass — typically 3-10 days. At Apex, you need 7 profitable days. This prevents traders from getting lucky on 1-2 big days and passing without demonstrating consistent skill.
RULE 6 — NEWS TRADING RESTRICTIONS
Many firms prohibit trading within 2 minutes before and after high-impact economic events (NFP, CPI, Fed rate decisions, etc.). Violating this rule causes automatic disqualification at some firms.
Check the economic calendar before every session. Our AI Journal has a built-in News tab for this purpose.
RULE 7 — OVERNIGHT AND WEEKEND HOLDS
- Overnight holds: Most firms allow holding positions overnight. Some plans/firms require flat end of day.
- Weekend holds: Most futures firms require flat by Friday close. Forex firms are more flexible.
- Always check your specific plan — not just the firm's general policy.
TRACK YOUR RULE COMPLIANCE AUTOMATICALLY
The Free AI Journal has a built-in Consistency Rule Tracker and daily drawdown monitor.
GET FREE JOURNAL → ❓ ASK MANIA HELP CENTER