Best Prop Firm Trading Strategies
High-probability setups adapted to prop firm constraints: risk caps, min days, and consistency rules.
Breakout with retest
Trade confirmed breaks of key S/R with a retest and momentum confirmation. Keep fixed risk and avoid news windows.
- Entry: retest of broken level with rejection wick or volume spike.
- SL: beyond structure; TP partials at range extremes.
- Avoid: low-liquidity hours; tighten risk near target.
Trend pullback
Join an established trend on a measured pullback to a dynamic level (MA/VWAP) or structure.
- Entry: confirmation candle after pullback, aligned with higher TF bias.
- SL: behind swing; trail after HH/HL forms.
- Stick to max trades/day; skip chop days.
Mean reversion to VWAP
Fade overextensions back to VWAP/POC during range-bound sessions; requires discipline with SL and partials.
- Entry: exhaustion at extremes + failure to continue.
- SL: past the extreme; take partials at VWAP.
- Avoid: trending sessions and news spikes.
Execution & risk rules
- Cap risk: 0.25–0.5% per trade; 0.5–1% per day.
- Max 2–3 trades/day; stop after daily cap hit.
- Journal every trade to refine edge and avoid repeats.
Strategy selection matrix
Match sessions and volatility to a strategy:
- Asia: mean reversion, smaller targets, tighter risk.
- London open: breakout/retest with momentum filters.
- New York: trend pullbacks and continuation after data digestion.
Backtest → forward test → deploy
- Backtest 100+ trades; log R:R, win rate, MAE/MFE.
- Forward test 30–50 trades on demo with prop‑style rules.
- Deploy with reduced risk; scale after clean weeks.
Common mistakes by strategy
- Breakouts: chasing without retest; trading inside ranges.
- Pullbacks: entering before confirmation; ignoring HTF trend shifts.
- Mean reversion: fading strong trends; skipping hard stops.
FAQ
Which strategy is best to pass fast?
The one matching your data and schedule. Consistency beats speed; avoid oversized bets.
Can I mix strategies?
Yes, but limit to 1–2 well‑defined playbooks to keep risk and execution clean.
How to manage trades under min day rules?
Aim for singles and doubles; partial TP and reduced risk preserve equity and satisfy activity requirements.