You’ve secured a prop firm funded account, passed the evaluation, and even started scaling up. But staying funded is a whole different game. Prop trading comes with a unique set of rules that, if ignored, can result in the loss of your account—no matter how skilled you are.
In this blog, we’ll explore the key rules prop traders must follow, focusing on platforms like Apex Trader Funding. Following these guidelines not only protects your capital but ensures long-term success in the prop trading world.
Why Rules Matter in Prop Trading
Prop firms like Apex Trader Funding provide you with capital to trade. In return, they expect you to trade responsibly. These rules help:
● Minimize risk to the firm’s funds
● Create structure for traders
● Encourage sustainable, long-term profits
Even a single rule violation can disqualify a trader—so understanding and respecting the rules is essential.
1. Daily Loss Limit
One of the most common account killers is exceeding the daily loss limit. Apex and other futures prop firms clearly define the maximum amount you can lose in a day.
Tip: Stop trading once you're near the limit. A red day is better than a reset fee.
2. Trailing Drawdown
Unlike a static drawdown, a trailing drawdown follows your account equity. For example, if your account hits $53,000, and the trailing drawdown is $2,500, your minimum equity can’t drop below $50,500.
Tip: Don’t push too hard once you've hit new highs. Reduce risk to preserve gains.
3. No Overnight Holding (Unless Permitted)
Many prop firms disallow holding trades overnight. Apex typically enforces a close-of-day cutoff. Violating this rule can instantly void your funded account.
Tip: Set alarms or automatic closeouts to ensure positions are flat by the required time.
4. Minimum Trading Days
To promote consistency, firms often require a minimum number of active trading days. Apex, for instance, may need five trading days even if you hit your profit target early.
Tip: Spread your trades out. stock market analysis to complete the target in a day or two.
5. Use Approved Platforms Only
You must trade using the firm-approved platforms like Rithmic, Tradovate, or NinjaTrader. Using unapproved software can result in invalid trades or disqualification.
6. No High-Frequency Trading (HFT)
Most prop firms, including Apex, prohibit algorithmic or high-frequency trading unless specified. This ensures fairness and helps evaluate genuine trader performance.
Tip: Read the terms carefully before implementing any automated strategies.
7. Consistency is Key
Inconsistent trading patterns—such as making all profits in a single trade—can trigger a red flag. Some firms require proportional daily profits to gauge consistency.
Tip: Aim for steady progress, not lottery wins.
8. Respect Account Scaling Rules
As you grow your capital, there are rules about how quickly and by how much you can increase your position sizes. Jumping too fast can breach risk limits.
Tip: Follow a written scaling plan (see Blog 4) and increase size gradually.
9. Avoid Trading During News Events
Some prop firms restrict trading during major news events due to volatility. Make sure you know which events are blacklisted.
Tip: Use an economic calendar like Forex Factory or Myfxbook to stay informed.
10. Communication with Support
If something goes wrong—platform error, order issue, or internet outage—communicate it immediately. Apex offers support channels that can help resolve disputes before they escalate.
Tip: Always keep a log of your trades and screenshots of any technical issues.
What Happens If stock market analysis Break a Rule?
Consequences vary, but typically include:
● Loss of funded account
● Evaluation reset (with fee)
● Disqualification from future participation
Some platforms offer reset options or grace periods, but don’t rely on them. Prevention is always cheaper than recovery.
Apex Trader Funding: Transparency in Rules
What sets Apex Trader Funding apart is their clarity. Their rulebook is:
● Easy to access
● Frequently updated
● Transparent about expectations
They even offer reset discounts and evaluation promos to encourage traders to keep trying, while still maintaining professional standards.
Final Thoughts
Trading for a prop firm funded account is a privilege that comes with responsibility. Respect the rules, treat your account like a business, and you’ll unlock long-term earning potential.
Whether you're working with Apex Trader Funding or any of the top futures prop firms, the key to success isn’t just passing the evaluation—it’s staying funded and growing sustainably.
Next up, we’ll explore performance tracking tools and journaling techniques to sharpen your edge and maintain peak performance as a prop trader.