Trading Strategy: How to Overcome Prop Firm Challenges
- virgiliozamparo
- Apr 17
- 2 min read
To overcome the challenges of prop firms and reach the payout, it is essential to adopt a trading strategy that balances risk and return, respecting the drawdown and profit target criteria. Below are the most effective strategies:
Sniper Strategy
Strategy Description : Focused on selective, high-impact operations.
Main Features :
- Targeted operations to reduce the risk of drawdown.
- Risk/reward ratio ideally 1:3 or higher to avoid market traps.
How to Apply :
- Analyze key levels on H4 and Daily timeframes.
- Wait for confirmation patterns using volume and price action.
- Use strategic stop losses and limit your risk to a maximum of 1% per trade.
High Probability Scalping
Strategy Description : Quick approach with multiple small trades.
Main Features :
- Rapid accumulation of small victories.
- Reduced exposure to avoid prolonged drawdowns.
- Greater flexibility after the removal of the 3-minute limit on PTA.
How to Apply :
- Use indicators like VWAP, EMA and order flow.
- Set small targets (5-15 pips) with limited risk.
- Limit the maximum number of daily trades to avoid emotional mistakes.
Intraday Trading Based on Breakouts and False Breakouts
Strategy Description : Ideal for those who prefer quick daily operations.
Main Features :
- Exploit impulsive movements to quickly reach the profit target.
- Reduce the need to hold open positions for days to minimize the risk of adverse news.
How to Apply :
- Identify liquidity areas on H1 and M15 timeframes.
- Enter on confirmed breakouts with volume and momentum.
- Avoid trading during high-impact events such as NFP, CPI and FOMC.
Trend Following with Deep Pullbacks
Strategy Description : Suitable for patient traders who wish to avoid sudden market movements.
Main Features :
- Identifying long-term trends with pullback opportunities.
- Approach that favors advanced technical analysis to capture significant movements.
How to Apply :
- Monitor trends and wait for retracement before entering.
- Use momentum indicators to confirm the start of the trend.
Comments