Prop Firm Rules, Explained
Every prop firm hides the same rules behind different names. We translate the rulebook — so you know what will actually get your account closed.
Looking for an A–Z list? Jump to the glossary.
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Consistency Rule
consistency · 30% rule · 40% rule · best-day rule
A consistency rule caps how much of your total profit can come from a single trading day, typically thirty to fifty percent. Prop firms use it to discourage all-or-nothing trades and reward steady performance. Break the threshold at payout time and the firm may delay, reduce, or void your withdrawal entirely.
EA Allowance
EA rules · bot rules · automated trading policy · copy trading rules
EA allowance describes which expert advisors, automated bots, or copy-trading tools a prop firm permits on funded accounts. Most firms ban high-frequency, latency-arbitrage, tick-scalping, and shared commercial EAs while allowing custom indicators or risk-management bots. Always confirm specific software with support before deploying it, since unauthorized automation can void profits.
Minimum Trading Days
min trading days · MTD · active trading days
A minimum trading days rule requires you to place at least one qualifying trade on a set number of separate days before passing or withdrawing. Most firms ask for three to ten days, ensuring evaluations reflect process not a single lucky session. Skipping days delays payouts even when the profit target is met.
News Trading Ban
news ban · high-impact news restriction · no news trading
A news trading ban restricts opening or closing positions around high-impact economic releases such as nonfarm payrolls, CPI, or rate decisions. Firms enforce buffers of two to five minutes before and after the print to limit slippage exploitation. Violations typically void any profit on the trade and may breach the funded account.
Profit Target
profit goal · challenge target · evaluation target
A profit target is the percentage gain you must reach in an evaluation phase to advance or get funded. Most one-step challenges set targets between eight and ten percent, two-step models five to ten percent per phase. Hitting it without breaking any other rule unlocks the next stage or funded status immediately.
Static Drawdown
static DD · balance-based drawdown · fixed drawdown
A static drawdown is a fixed maximum loss measured from your starting balance, not from any later high. Unlike a trailing limit, it never moves up as you become profitable, so your buffer can only grow. Most traders prefer static rules because they make risk planning predictable and reward consistent, long-horizon performance.