Rules

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Trading Rules at PropXP

At PropXP, we firmly believe that disciplined trading is fundamental to consistent and long-term success. To this end, we have clear-cut rules, flexible and transparent in intent, devised to keep traders on track to maximize their opportunities for success. Our rules ensure a fair trading environment and provide a structured framework to meet the PropXP challenge requirements. Below is a breakdown of the critical rules every trader must adhere to:

Daily Drawdown Limit

PropXP generously allows for a daily drawdown limit of up to 5% of the account balance. This rule will keep traders within a safe risk to their account and limit losses while building responsible and thoughtful trading strategies. This 5% daily drawdown aligns with the most widely accepted risk management strategies.

No High Watermark

Unlike many firms utilizing a High Watermark rule—which keeps track of the highest account balance achieved and resets the drawdown calculation accordingly—PropXP doesn't enforce a High Watermark. Your max drawdown derives from your starting balance, giving you more breathing room to work through those inevitable trading ups and downs.

Maximum Overall Drawdown

We cap our Challenges at a 10% maximum overall drawdown. Compared to many other prop trading firms, this setting gives you more opportunity to recover from potentially losing trades. With this broader drawdown,
it is easier to be in balance with risk management, even in highly volatile markets.

Leverage

PropXP gives traders up to 1:100 leverage. This provides flexibility to various trading styles, allowing traders to capitalize on even the tiniest market move without overexposing themselves to unnecessary risk. Leverage can be individually set depending on what asset class is traded, ensuring that an appropriate risk for each market is achieved.

Challenge Rules

Leverage

At PropXP, leverage for our challenges is set at 1:100, mirroring the most prevalent current trading conditions.

Active Days

Our 1-Step challenges call for a minimum active period of seven days.

Challenge Duration

Nobody likes forced restraints on their trading, so at PropXP, our challenges don't expire.

Profit Target

The profit target for the PropXP 1-Step challenges is set at a very achievable 20%.

Maximum Drawdown

The maximum drawdown is set at 9%, which aligns with conservative risk management policies.

Daily Drawdown

The daily drawdown limit is set according to our risk management standards to ensure disciplined trading.

Prohibited Trading Practices

Copy Trading

Copy trading between your accounts on PropXP is permitted. However, you are not allowed to copy from any external account that is not yours.

News Trading

While news trading is considered a high-risk strategy, it is permitted in the PropXP system. Please be aware of the risk involved should you decide to employ this strategy.

Hedging

The practice of opening simultaneous positions in both the sell and buy directions on two separate accounts (Hedging) is prohibited.

High-Frequency Trading (HFT)

PropXP prohibits using computer software and trading algorithms to execute large numbers of trades in fractions of a second to take advantage of pricing deficiencies (HFT).

System Errors

PropXP prohibits trading strategies that exploit platform glitches, interruptions to date feeds, execution delays, or any other system error.

Consistency

We designed our challenges to test your trading strategies and risk-management skills. For example, achieving a challenge goal in one large trade and not executing any further trades contradicts our consistency rules.

Gap Trading

Trading strategies that exploit pricing gaps around major economic news or at market opening hours (Gap Trading) are prohibited on PropXP.

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