How to Pass a Prop Firm Challenge: FTMO, FundedNext, 5%ers & More

How to Pass a Forex Prop Firm Challenge in 2025 – Complete Guide

📘 Introduction: The Fastest Route to Big Capital

Forex prop firms are the gateway to serious trading without needing $10K+ in your own account. If you can prove you’re skilled and disciplined, firms like FTMO, The 5%ers, and FundedNext will fund you with $10K to $400K.

But here’s the catch:
Over 85% of traders fail the challenge phase — not because they’re bad traders, but because they don’t treat it like a business.

This guide will teach you exactly how to pass a prop firm challenge in 2025, with battle-tested tips used by funded traders at Blue Bull Forex Hub.

🏢 1. Understand the Prop Firm Models

Each prop firm has slightly different rules. But most offer one of these models:

🔹 2-Step Evaluation (e.g., FTMO, FundedNext Stelar/Lite)

• Phase 1: 10% profit

• Phase 2: 5% profit

• Daily Drawdown: 5% | Max Drawdown: 10%

• Payout starts after funding

🔸 1-Step or Instant Funding (e.g., The 5%ers, FundedNext Stelar)

• Lower targets (5–8%)

• Higher cost or lower split

• Some firms pay even during the challenge phase

📌 Choose your model based on your trading style, account size, and risk comfort.

⚖️ 2. Know the Rules Like Your Life Depends On It

Before even placing your first trade, memorize these:

⚠️ Failing the challenge doesn’t mean you’re a bad trader — it just means you didn’t respect the rules.

🧠 3. Build a Challenge-Ready Mindset

The prop firm challenge is 80% discipline, 20% strategy. If you don’t control your emotions, revenge trades, and greed — even great setups won’t save you.

🔐 Challenge Mentality:

• Think like a risk manager, not a gambler

• Focus on capital protection first

• One trade can disqualify you, so wait for quality

• Don’t chase daily targets. Stick to the process.

🎯 Passing the challenge is about survival — not speed.

📈 4. Choose a Strategy That Matches the Rules

Your normal strategy might be too aggressive for a prop account. You need a setup that offers:

✅ High-probability entries
✅ Tight risk-to-reward (1:2 minimum)
✅ Consistency over time
✅ Clear structure and confluences

🔍 Recommended Approach: Smart Money Concepts (SMC)

SMC helps traders:

• Trade with institutional flow

• Use tight stop-losses with high R:R

• Avoid retail traps (fake breakouts, false trendlines)

At Blue Bull Forex Hub, our mentorship uses:

• CHoCH + OB entries

• FVG confirmation

• Session-based timing (London/NY overlap)

• Minimum 1:3 R:R with max 2 trades/day

📊 5. Design a Trading Plan Specific to the Challenge

Every prop firm trader needs a pre-written challenge plan with clear limits and setups.

Your Plan Should Include:

• ✅ Max risk per trade: 0.5–1%

• ✅ Max trades per day: 1–3

• ✅ Daily loss cap: 3%

• ✅ Setup checklist: e.g. liquidity sweep + CHoCH + OB

• ✅ No-trade days (to reset or review)

📌 This turns you from a trader into a professional risk operator.

💡 6. Smart Risk Management Wins Challenges

Risking too much is the #1 reason traders fail.

Golden Risk Rules:

• Start with 0.5% per trade — only go to 1% with confidence

• Avoid overlapping trades or correlated pairs (e.g., XAUUSD + GBPUSD)

• Use trailing SL or partial profits when in a drawdown

• Skip news releases unless you’re advanced

🎯 Your only goal is to reach the target — not to double the account.

🧾 7. Journal Every Trade for Accountability

Log each trade with:

• Setup taken

• Timeframe

• Entry/SL/TP

• R:R

• Mistakes

• Screenshot

• Confidence level (1–10)

Review your journal daily and weekly. If your emotions spike, pause and revisit your plan.

🧠 8. Psychological Traps to Avoid

🔄 9. What If You Fail the Challenge?

It’s okay. Most do on their first attempt.

👉 Use your journal to analyze:

• Were you disciplined?

• Did you follow your plan?

• Was your strategy sound?

Wait 1–2 weeks, reset mentally, and go again with the data in hand.

🟢 10. How Blue Bull Forex Hub Prepares You to Pass

Our funded traders get access to:

• ✅ 1-on-1 Prop Firm Prep Coaching

• ✅ Weekly Challenge Review Sessions

• ✅ High-Probability SMC Setups

• ✅ Risk and equity management plans

• ✅ Trading journals, dashboards, and trade checklists

If you’re ready to get funded, don’t go in alone — let our structure guide your success.

📘 Join our Crash Course
🎯 Enroll in Mentorship
👥 Book a Prop Challenge Strategy Call Now

👉 [Chat with us on WhatsApp]

🔎 FAQs

Q: What is the easiest prop firm to pass in 2025?
A: The 5%ers or FundedNext Express offer lower targets and relaxed rules, but all require discipline and planning.

Q: How long does it take to pass a challenge?
A: 10–30 days, depending on the firm and how often you trade. It’s better to go slow and steady.

Q: Can I use EAs or bots during the challenge?
A: Most firms prohibit EAs unless they’re pre-approved. Manual trading is safer and more transparent.

Q: What happens after I pass the challenge?
A: You’ll receive a live funded account and start receiving payouts (usually every 2 weeks to 1 month).