The Prop Challenge Hamster Wheel

Don’t become a victim

So… online prop firms.

Love em or hate em they play a key part in the trading ecosystem.

I’ve been quite open about my thoughts about these firms.

I reckon they are a useful tool for many traders stuck between that phase of getting traction, but not yet consistent.

You don’t want to waste your time on a demo, but you aren’t yet ready to risk your hard-earned capital in any meaningful amount.

The online prop firms give you a chance to exercise discipline, try out new strategies and ideas, without the risk to your capital, but with some decent upside.

Once you get dialled in and profitable, you can take your £10k, £30k, £50k payout and then shift to trading your own account.

(You tend to be playing with your own risk capital anyway past a certain point with prop firms, they just give you more leverage… but that’s a conversation for another time.)

Right, but the problem can come with that middle zone.

Not yet profitable, but showing spells of good trading.

Passing some challenges, failing some live accounts, retrying, getting somewhere, and then back to square one.

This is the prop challenge hamster wheel.

The challenges are cheap enough for you not to really care right?… $50 here, $85 there. And so the temptation to keep going and going is strong.

You’re ambitious, and there’s no way you are giving up.

But, here’s the thing.

If you’re not careful you can be ploughing $000’s into these challenges, with not much to show for it.

And the worst part?

You feel like a big failure every time you fail and have to start at square one.

There’s only so much of that you can take.

Is spending a few grand on these challenges better than blowing up a 6 figure account?


But, if you find yourself repeating challenge after challenge and not really getting anywhere, maybe it’s time for a rethink.

Perhaps it’s better to throw a few grand into a CFD/SB/Futures broker and trade super small. (Pepperstone is one option, but there are other great brokers out there.)

Trade your style, keep things small, and learn as you trade.

Yeah you lose the ‘opportunity’ to trade millions, but you can dial in your strategy, trade on your own terms, and always go back to the prop firms if you think you have something that would work under their restrictions and rules.

Everyone’s different of course, but it’s something to consider.

There’s no right or wrong way to progress, find what works for you.

But don’t be afraid to pivot…

We’re all stubborn, ambitious individuals, but that doesn’t mean doing the same thing again and again. A side step, a back step or two is sometimes all you need to make a leap forward…