If you’re thinking about taking on a futures prop firm challenge, stop for a second and ask yourself: am I ready? Not just emotionally hyped or looking to “make it” overnight – but genuinely, consistently profitable in a way that you can hold and grow an account long term.
Ask yourself:
- Am I consistent enough to take on a challenge?
- Do I have a solid trading plan and strategy?
- Do I have a clear risk management plan?
- Am I mentally prepared?
If you have any hesitation, now is the time to step back. Focus on becoming consistently profitable and mastering your emotional discipline. However, if your answer is a confident “yes” to all of these, then let’s discuss how you can give yourself the best possible chance of passing a futures prop firm challenge.
Why Trade Futures in the First Place?
Futures have their pros and cons, like anything in trading – but for many, the pros far outweigh the cons.
The Pros
- Everyone gets the same price. Unlike CFDs, where brokers can quote different prices, futures are traded on a centralised exchange. No shady price discrepancies here.
- There are no wide spreads. You’re trading directly at the bid and ask, which often makes it cheaper to enter and exit positions compared to CFD or forex brokers.
- Challenge fees are usually lower. Futures prop firm evaluations often cost less than their forex counterparts.
The Cons
- You can’t hold overnight. All positions need to be closed before the session ends, so swing trading is off the table.
- Contracts don’t last forever. Futures come with expiry dates, which means you’ll need to manage rollovers. It’s not rocket science, but you can’t ignore it either.
Choosing the Right Futures Prop Firm
There are several reputable futures prop firms out there. Some of the most well-known include:
- TopStep – arguably the most recognised and respected name in the game.
- Top One Futures – newer but gaining traction.
- Tradeify – also becoming more popular among traders.
Most of these firms use platforms like NinjaTrader, Tradeovate, and Project X. Be sure you’re comfortable with them before starting a challenge, they’re quite different from MetaTrader. If you’re familiar with TradingView, Project X will most likely feel like home as it uses TradingView charts. There’s nothing worse than struggling with unfamiliar software when real money is at stake.
Understanding Mini and Micro Futures Contracts
Futures trading isn’t one-size-fits-all, you can pick different contract sizes depending on how much risk and capital you want to take on. The two options are Mini and Micro contracts, and the difference between them is pretty straightforward.
Mini contracts, like the E-mini S&P 500, are the go-to for many traders. Each contract moves $50 for every point the index changes. So if the S&P jumps 10 points, that’s $500 in your pocket per contract.
Micro contracts shrink that risk down to a tenth. With a Micro E-mini S&P 500, you’re looking at $5 per point instead of $50. The same 10-point move would earn you $50, way easier to handle if you’re easing into the market.
Stick to micros during your challenge, they offer more flexibility and make it easier to scale up or down. Minis are better suited for those with a large buffer and strong risk management. One wrong move with minis can wipe your account if you’re not careful.
How to Pass the Challenge
This is the part most people overthink, or worse – ignore completely.
Here’s a simple but solid roadmap:
- Start small, begin with 1–2 micro contracts. Yes, it’s slow. Yes, it’s boring. That’s the point.
- Stick to one market, don’t hop around between NQ, ES, Gold, Oil or Cattle. Pick one and get to know its behaviour. Each market has its own rhythm – learn it.
- Build a buffer, once you’re up $500 or so, then (and only then) consider scaling to 3 micros. When you hit $1,000, scale to 4, 5 and so on. Don’t jump to big size just because you had one good day.
- Respect the rules, every firm has different daily loss limits, max drawdown, and rules about consistency. Understand them inside and out. One silly mistake can wipe out a week of solid trading.
Mindset and Discipline Matter More Than Strategy
Most people fail the challenge not because they’re bad traders, but because they lack discipline. They jump in the markets just because they need to be in a trade. They overtrade. They revenge trade. They let one red day spiral out of control.
Some golden rules:
- Focus and don’t get distracted by other traders or listen to random opinions online.
- Tune out the noise, only pay attention to macro news that truly impacts the futures market – like important economic data releases.
- Journal your trades, know why you entered, what you saw, and what you could’ve done better. This alone can tighten your edge massively.
- Take time off. If you’ve had a bad day, clear your head, walk away, the markets will be there tomorrow.
- Avoid ego traps, having a good day or passing a challenge isn’t about showing off. It’s about proving to yourself (and the firm) that you can follow rules, manage risk and be able to hold and grow an account long term.
Final Thoughts
Passing a futures prop firm challenge isn’t easy – but it’s absolutely doable if you approach it with patience, discipline, and a clear plan.
You don’t need to be the best trader in the world. You just need to:
- Be consistent
- Protect your capital
- Follow the rules
- Scale smart, not fast
Treat it like a business – because it is. You’re proving you can manage someone else’s capital responsibly. Trade with that level of respect and focus, and you’ll be well on your way to getting funded.
Good luck trader!