YT YouTube2Text

YouTube2Text → Transcripts → Market Mechanics Ep 31: How to Pass Prop Firm Challenges

Market Mechanics Ep 31: How to Pass Prop Firm Challenges — Transcript

by Brad Goh (The Trading Geek) · 5,558 words · 843 segments · language en · Watch on YouTube

Open in transcriber Summarize with AI Download SRT/VTT

Full transcript

0:00How to pass prop firm challenges 101. In
0:02this video, I'm going to give you a lot
0:04of tips and tricks so that you can pass
0:06your prop firm challenges with ease. And
0:09this is coming from a mentor who has
0:12helped hundreds, if not thousands, of in
0:14students get funded. Right? Like all of
0:16these amazing results that you can see
0:18on the screen right here over and over
0:20again. So, I can tell you with all my
0:22heart that every single tip and trick
0:25I'm about to teach you today works. All
0:26right? So, yeah. Continue. You can see
0:28this goes on and on. We've got so many
0:30students who managed to get with all of
0:32these tips and tricks where I'm about to
0:34equip you with. Okay, so this is the
0:36secret sauce right there. Now, a lot of
0:38traders think prop firm challenges are a
0:40test of strategy. They are not. A prop
0:43firm challenge is a rule-based game. So,
0:45that's how I define a prop firm
0:47challenge.
0:48It's simply a game. And if you win the
0:50game, that doesn't mean that you're a
0:52good trader. It just means that you
0:53really understand the rules of that
0:55game. If you failed at the game, that
0:57also doesn't mean that you're at
0:58trading. You could be a good trader, but
1:01still fail the prop firm challenge. All
1:03right? Because you don't understand the
1:04rules. Because you don't play by the
1:06rules.
1:07And a lot of traders, they don't fail
1:09the prop firm challenge because their
1:10strategy sucks. They fail because they
1:14break the rules before their edge has
1:17enough time to play out.
1:20As a result, they overtrade, they
1:21revenge trade, they size up emotionally,
1:24they hold their trading trades through
1:26news, they hit daily loss, they blow
1:28overall drawdown. All right? They start
1:30to break every single rule that the prop
1:33firm challenge asks them not to break.
1:34And that's why they fail. Right? Like
1:36they can have the most profitable
1:37trading strategy under the sun,
1:40but because they exceed the risk
1:42parameters, because they violate a
1:44certain rule, they fail.
1:47So, prop firm challenges are not just
1:48about making money. They are about
1:50making money without breaching the
1:52rules. That is the game.
1:55And once you understand that, your whole
1:57approach starts changing. Because now
2:00you stop thinking about how can I pass
2:01this as fast as possible, and you start
2:04thinking about how can I survive long
2:06enough, stay within the rules, and let
2:09my edge do the work.
2:11That is a much better question.
2:14So, my best piece of advice for you who
2:17are trying to attempt a prop firm
2:18challenge or is going to attempt a prop
2:20firm challenge is this.
2:22Prop firm challenges reward the boring
2:24traders, not the emotional one.
2:27That's it.
2:28Okay? So, once again, the big mistake
2:32right now is that a lot of traders, they
2:34try to rush the process. They are trying
2:36to get funded as soon as humanly
2:38possible. They see the 5% or 10% profit
2:41target, and now they immediately start
2:43thinking, I need to make that quickly. I
2:45need to make this challenge worth it. I
2:47need to get funded with the 100K. I need
2:50to get funded fast.
2:51And that urgency is what destroys them.
2:54That urgency is what creates
2:57frustration, is what creates
2:59nervousness, and that's what allows you
3:02to actually fail the challenge yourself.
3:04So, it's like you know how to trade, but
3:06because of the fact that you were
3:07nervous, because of the fact that you
3:09were emotional,
3:11you unconsciously violate any one of
3:13those rules right here, and you fail the
3:14challenge.
3:16Okay? Remember, the faster you try to
3:18win, the more likely you are to break
3:20the rules. So, ironically, the longer it
3:23takes for you to actually get funded.
3:27So, you want to make sure that you're
3:29doing the boring stuff.
3:30The trader who stays consistent, who
3:33manages risk well, and keep his losses
3:35controlled would usually outperform the
3:37trader who keep trying to be a hero,
3:39keep on trying to get funded in 20 days
3:43so that he can post on his Instagram and
3:45flex to his friends that he got a funded
3:47certificate.
3:49Right? So,
3:50what actually matters here is this right
3:52here. These are the numbers that define
3:55the game itself. Okay, the profit
3:57target, the max daily loss, the max
3:59overall drawdown, the trading day, the
4:01time limit, all of which I'm going to go
4:02through with you in a bit in part two of
4:04this lesson itself. These numbers are
4:07everything because they define the game.
4:10If you do not build your strategy around
4:12these numbers, then you are not really
4:13trading the challenge. You are just
4:16trading your emotions inside someone
4:17else's rule book.
4:19And that number ends well.
4:22Right, so what you want to do is to
4:23really understand the numbers and then
4:26structure your trading
4:28so that you can like game those numbers
4:30mathematically.
4:32If the profit target is this, and that's
4:34what you should be aiming for, then you
4:35want to make sure that you adjust your
4:37risk parameters so that you do not
4:39violate your max daily loss, max
4:41overall drawdown, but still give
4:43yourself enough room to actually hit
4:45your target.
4:46So once again, we're going to dive
4:48deeper into like the actual strategy in
4:50part two of this lesson itself. For now,
4:51let's let's just go back to the theory.
4:53Right, so what's the best strategy for
4:55passing then? It's this, very simple.
4:58Stay small, stay consistent, stay alive.
5:02I call these the three stays. Stay
5:04small, stay consistent, stay alive.
5:07What this essentially means is that you
5:09should be
5:10risking small enough
5:13that normal losing streaks do not kill
5:14you.
5:15Your risk per trade should not be more
5:17than 1% per trade. Should not even be
5:18more than 0.5% per trade.
5:21And you want to focus on A and A+ setups
5:23only. Right, you only want to be
5:26taking the setups where you know for a
5:28fact that it's going to work out.
5:29You want to avoid all the random trades
5:31that is outside of a trade plan.
5:33You don't want to force trades when the
5:34market conditions is not ideal, when the
5:36price is just chopping around.
5:38And you want to make sure that you
5:39protect your trading account, your
5:42trading rules at all costs.
5:44Because the goal here is not to hit the
5:46target in one day. The goal here is to
5:49hit the target without breaching the
5:50rules.
5:52Okay? And once again, that usually
5:54happens faster when you are when you
5:56stop trying to rush it.
5:58Remember, the goal is not to get funded.
6:01The goal is to get paid.
6:03So, getting funded is just stage one,
6:06right? Once you get funded, you still
6:07need to think about how to actually get
6:09paid. And not just get paid once, but
6:11get paid consistently from the market.
6:14So, you might as well use this challenge
6:16right here to build the right habits
6:18from the ground up. So, that eventually
6:20when you do get funded, when you do have
6:22the capital, you are able to like adhere
6:24to your risk parameters because
6:26it's already a habit, right? It's
6:27already part of your identity. Okay? So,
6:29yeah. Like I said, a lot of retail
6:31traders, they tend to fail because they
6:32revenge trade after a loss, they over
6:35trade out of boredom, they
6:39ramp up their lot size after a few wins,
6:42they hold into dangerous news events,
6:44they give back the profits back to the
6:46market, they try to make up for lost
6:48time,
6:49and all of this is not a strategy
6:51problem. Like, the guy can trade, right?
6:54The guy has a good strategy.
6:56But, because he lack discipline, he's
7:00too emotional, he lack structure, he
7:02failed the challenge.
7:05So, yeah.
7:06I really believe that passing a prop
7:07firm challenge is less about finding a
7:09better setup and more about building
7:12better behavior.
7:14If you have the right behavior, you play
7:16by the rules, it's only a matter of time
7:18until you pass. But, if you have the
7:20wrong behavior, you can have the best
7:21setup in the entire world, but you will
7:23still fail. Even if you do pass, you
7:25will not be able to maintain that funded
7:27account, you will not be able to extract
7:29payouts consistently from that funded
7:31account itself.
7:33So, yeah. It's all about just playing by
7:35the rules, to be honest with you. Right?
7:36Like I said, just like any game, you
7:38just got to understand the rules of the
7:40game, and as much as possible, try to
7:43game the rules of the game if you can,
7:44but like you still have to follow them.
7:48Right? So, yeah.
7:50Your real edge in a prop firm challenge
7:51is not just strategy. It's your ability
7:54to turn the prop firm rules into your
7:55own system.
7:57Because once the rules are clear, the
7:59game becomes so much more easier.
8:02Which means define a risk, respect the
8:05daily loss, respect the drawdown right
8:08here.
8:10Keep your trade count low, trade only
8:13your best session, avoid landmines like
8:16high impact news, and just let the
8:18challenge unfold over a series of
8:21controlled days.
8:22That is how you pass. Not by gambling,
8:25not by rushing, not by trying to be
8:28clever, but by being structured enough
8:31to let your edge compound without
8:33self-sabotage,
8:35without breaking the rules and losing
8:36the account itself.
8:40So, yeah. Just to sum up everything,
8:42prop firm challenge isn't hard because
8:43of strategy, it's hard because of the
8:45rules. And your job is to turn those
8:47rules into a process that you can
8:49actually follow when emotions hit,
8:51because it's going to hit, right?
8:52Because when your hard-earned money is
8:53on the line, you're going to feel
8:54nervous, you're going to feel
8:55frustrated, you're going to feel anger,
8:56you're going to feel fear, greed, all of
8:58those stuff right here. Which is why
8:59it's so important for you to have some
9:02form of guardrails that prevent you from
9:05making stupid mistakes, that prevent
9:07emotions from taking control over your
9:09decision making. Which brings us to the
9:12second part of this lesson. Knowing the
9:14prop firm rules is one thing. Actually
9:17following them in real time is another
9:19thing.
9:20So now, what I want to do is to show you
9:22how to use Edge Flow to turn those prop
9:24firm rules into guardrails, so you stop
9:27relying on willpower and start trading
9:29the challenge with structure.
9:31To me, this is how you cheat at a prop
9:33firm challenge, by having guardrails
9:35that other traders do not have.
9:37So, with that being said, enjoy the
9:39lesson. This app lets you cheat at prop
9:41firm challenges. So, you pass them
9:43faster. Not by breaking the rules, the
9:46opposite, but by enforcing them. Now,
9:49before we talk about the game, right?
9:51Before we talk about how to pass a prop
9:52firm challenge faster, let's understand
9:55what the game actually is. So, a prop
9:58firm challenge isn't a test of how smart
10:00your strategy is. It's a test of whether
10:03you can follow rules under the pressure.
10:06So, let's quickly break down the rules
10:08that govern the game. Because once you
10:10understand these numbers, passing
10:12becomes way easier and you will stop
10:14failing for dumb reasons.
10:16So, for the sake of simplicity, I'm just
10:18going to show you in the example of a
10:20$200,000
10:22funded account from FTMO. Right, so in
10:25order for you to get funded with 200k of
10:28them, you have to pay this refundable
10:30fee of like around 1k euros and you have
10:32to pass that challenge, which is
10:35comprised of two phases. Okay? So, once
10:38you pass those two phases, this is where
10:40you will get funded with 200k and you
10:42can trade with this large amount of
10:44trading capital.
10:46So, let's break down the rule one by
10:48one.
10:49First of all, we got a profit target.
10:51This is the goal that you need to hit in
10:53order to pass each phase. So, for phase
10:56one, the first phase, you have to get a
10:58profit target of 10%. And then for the
11:00second phase, you have to get a profit
11:02target of 5%.
11:05So, you have to make 10%
11:08in the first phase and you have to make
11:105% in the second phase in order for you
11:13to actually get funded. Right, so in
11:15total, you have to make around like 15%
11:17if you're combining both of them
11:18together.
11:20Bear in mind that you're not trying to
11:21get there in one day. You are trying to
11:24hit it without breaking the loss rules,
11:27which is what makes it kind of
11:28difficult. Right, because if you are
11:30just going to aim for 10%, you can just
11:32full port your account and just like
11:34over leverage, over size your trades and
11:36you can easily achieve that in like one
11:38trade. But the thing is
11:40you have the max loss rule.
11:42So the max daily loss, this is the
11:44maximum amount of money you are allowed
11:47to lose in a single day.
11:50So in this example is 5%, right? So if
11:53you hit this and you keep trading, you
11:55fail.
11:56And this is the one rule that most
11:58traders breach because they start
12:00getting tilted, they start spiraling out
12:02of control, they start revenge trading
12:05and as result they lose way more than 5%
12:07on a any given day, right? For example,
12:10on this trade they lose they might lose
12:122%. Next trade they lose another 2%. Now
12:14they're already down 4% but they start
12:16feeling this urge to make back the money
12:18they have lost. So they continue trading
12:20and then they lose another 2%. And then
12:22now they just lost the entire challenge.
12:25They just failed the entire challenge
12:26because they breached the max daily loss
12:28rule.
12:29Next is the max loss rule. This is the
12:32maximum you're allowed to lose on the
12:34account overall. So in this example
12:37itself, it's around 10%.
12:39So if you lose your 10% of your capital
12:43in total, right? Out of all the trades
12:44they have taken combined, you lose 10%
12:47this is where you fail the challenge.
12:50All right, so you want to be extremely
12:52careful, right? This is what we call the
12:54death line, right? Once you cross this
12:56line, boom, you're gone.
12:58And then you got the minimum trading
13:00days. Minimum trading days is the amount
13:03of days that you are required to trade
13:06in order for you to pass this challenge.
13:08Right? So some firms actually have this
13:10rule
13:11where you have to trade for a certain
13:13number of days. So this allows them to
13:16check whether you are just yellowing one
13:18day and then I just passing by luck,
13:20right? So in this example is four days,
13:23which means even if you hit the target
13:25early, right? Even if you make 10% in
13:27your phase one within like one day, you
13:29still have to take a bunch of trades for
13:31three more days in order for you to meet
13:34the minimum days requirement.
13:37And then we got the trading period. This
13:39is how long you have to complete the
13:42challenge.
13:43In this example, it's unlimited, right?
13:45Meaning there's no time pressure. You
13:47can trade it for as long as you want.
13:48You can take it at your own own time at
13:51your own pace. And as long as you get
13:53the 10% and 5% you'll be fine. You can
13:55pass the challenge, right? So, you can
13:58slow down, trade clean, and focus on not
14:00breaking rules. But on some prop firms,
14:02there might be some form of trading
14:05period, right? Where you have to pass
14:07and you have to get 10% or 5% within 30
14:09days, within 60 days, right? So, yeah,
14:13that's that. Last but not least, we got
14:14the the rewards, right? The rewards is
14:16pretty much your profit split once you
14:18got funded. So, in this example, it's up
14:21to 90%, which means when you get funded
14:23with 200k and you start winning trades,
14:26you start making money on the account
14:28itself,
14:30you will get to keep most of the
14:32profits. You will get to keep up to 90%
14:34of the trading profits. And then the
14:36firm will take the remainder, right?
14:37Could be 10%, could be 5%, depending on
14:40once again the the percentage split.
14:44So, I fundamentally believe that prop
14:46firm challenges isn't hard because of
14:48strategy, it's hard because of the
14:50rules, right? It's hard because of these
14:52rules right here. It's difficult to try
14:54to pass, get this profit target, while
14:57simultaneously ensuring that you don't
14:59breach the max daily loss and the max
15:01loss rule. And I also ensuring that you
15:03actually meet the minimum trading days,
15:05right? So, the rules is what makes it
15:07hard.
15:08So, your job is to turn these numbers
15:11right here into guardrails.
15:13So, you don't breach them when emotions
15:15hit.
15:16And that's what Edge Flow allows you to
15:18do, right? So, now
15:20let's do that, right? Let's set up our
15:23prop firm guardrails into Edge Flow,
15:25right? Let's build discipline into our
15:27execution system so that we actually
15:29meet these rules and we can actually
15:31pass with flying colors. This way, once
15:33again, you're not relying on willpower
15:35when you're angry, you're relying on a
15:37system.
15:38So, let's go to settings right now and
15:40let's go to trading preferences. This is
15:42where you get to set your guardrails.
15:44So, obviously, we already have a lesson
15:45on how to set your guardrails properly,
15:47right? So, please go and check out that
15:49lesson if you haven't done so. In this
15:51lesson, I'm just going to show you the
15:53guardrails that you can set in order to
15:55help you pass a prop firm challenge
15:57faster,
15:58right? So, for max trades per day, I
16:01would advise you to set it to three to
16:02five trades a day.
16:04Okay, three to five trades, not too
16:05much.
16:06If you are risking 1% on any given
16:09trade, right, which I'm assuming you
16:10are, right, because if you are going for
16:11a prop firm challenge, you're either
16:12risking 0.5% or 1%. I'm going to talk
16:15more about this later on.
16:16You want to make sure that you don't
16:18take too many trades on a day, right?
16:20Because if you take way too many on a
16:21trades on a day, you're going to breach
16:23your max daily loss easily, right? So,
16:26I'll say set it to three to five trades.
16:28I would say if you're a scalper, you can
16:29set it to five, right? But, if you're
16:31more of an intraday trader, you can just
16:33set it to three, right? So, highly
16:35recommend you to just pick these to your
16:37to fit your trading style, to fit your
16:38trading personality, to fit your trading
16:40goals.
16:41And this is very useful because it
16:43really prevents you from overtrading. It
16:45prevents you from, you know, just
16:47incurring the the just breaching the max
16:49daily loss rule.
16:51So, this is where I'll just be
16:52conservative and put three.
16:55Now, for the max daily loss, right? This
16:57is where you want to set it
17:00so that you have a little bit of buffer
17:02and you don't actually breach your
17:04trading rule, right? Breach your max
17:06daily loss rule. So, earlier on in the
17:08example I've showed you, the max daily
17:10loss for the prop firm challenge is 5%.
17:13So, if you put it at 5% right here, it's
17:15a little bit risky, right? So, you might
17:17want to put it at 4%. This way, when you
17:20hit 4% Edge Flow blocks you from
17:22trading. It prevents you from continuing
17:24trading. Right? And now you know that,
17:26okay, cool. Hands off, right? Or you can
17:28be even more safe, you can set it at
17:30like 2%. I personally like to set it at
17:332%. Right? So, if I'm trading a 100k
17:35account, I'm going to set it at $2,000.
17:37If I'm trading a 200k account like what
17:39you've just seen right here, this is
17:40where I set it at like $4,000. Right?
17:43So, that'll be 2% of my account. But
17:46like I said,
17:482% is good enough for me personally. If
17:50you want, you can set it to 4%, right?
17:52But I like 2%, right? Just to be safe.
17:55Okay? Because this is really the hard
17:56stop, right? They will block you from
17:58trading once you hit it. And this is
18:00also like the rule that causes most prop
18:03firm traders to fail.
18:05Next, you've got your max daily profit.
18:07Now, this is completely optional, right?
18:09You can choose to set a max daily profit
18:12or you don't have to, right? Like it's
18:14completely up to you. But I still
18:16recommend you to do it.
18:18So, earlier on you've seen that on phase
18:19one you need to get 10% to pass, right?
18:21And then on phase two you need to get 5%
18:23to pass. But that's for your entire
18:26period where you are attempting the prop
18:28firm challenge. This is max daily
18:32profit, right? Which is a target that
18:33you want to aim for on a day-to-day
18:35basis. And once you hit the target, you
18:37stop trading to prevent yourself from
18:39giving your profits back to the market
18:41itself. So, you need 10% overall, right?
18:44But for your daily profit, you don't
18:46need to get 10% in one day, right?
18:48That's You don't want to be doing that,
18:50right? Because if you're doing that,
18:51you're going to be over risking, you're
18:53going to be increasing the likelihood of
18:55you making a mistake and then you
18:57failing the challenge.
18:58So, what I recommend you to put here is
19:011%. Okay? 1% of your trading account on
19:05any given day.
19:06So, in this case on a 200k account,
19:09right? This is where I put just $2,000.
19:11Once you make $2,000 for the day, you
19:12stop trading for the day.
19:14All right, if you want to be a little
19:15bit aggressive and push a little bit
19:16more, you can go for 3%, right? Which is
19:18like around $6,000, right? Or even 5%,
19:21right? But you just want to make sure
19:22that you set a figure that makes sense
19:24to you. Okay, so in this example, I'm
19:26just going to set it to like
19:28just 1%, right? 1% a day. As time
19:31passes, this will add up, right? Like I
19:33said, the goal here is not to make the
19:35most amount of money on any given day.
19:37The goal here is to make sure that you
19:39don't give back the money that you
19:41actually make.
19:43Okay, so 1%. Once you hit it, stop
19:45trading, live to fight for another day.
19:48Next up, we got the risk per trade. Now,
19:51this is where it gets a little bit
19:53interesting, right? Because what you set
19:54here is going to
19:56increase or decrease the likelihood of
19:59you actually passing this prop firm
20:00challenge.
20:02I recommend you to set it at 0.5%.
20:06Okay, 0.5%.
20:08Because when you risk only 0.5% of your
20:11capital on any given trade, now you have
20:13more room to breathe. Now you have more
20:15buffer to play with, where you can take
20:18more losses
20:19and still stay in the game, right? So,
20:220.5% is a pretty good number for me.
20:26When I'm trying to attempt a prop firm
20:28challenge, I like to use a variable risk
20:31method, which means that I like to risk
20:330.5% on a A setup. But if I see a A+
20:38setup, which means I have more
20:39conviction, more confidence, I could put
20:43it at 1%.
20:45I could actually
20:46increase my fixed risk per trade from
20:480.5% to 1%.
20:51Right? But you don't want to set it over
20:53here, right? You can manually bump it up
20:55to 1% for that one trade when you are
20:57trading in the trading platform. So,
21:00over here I'll just put 0.5%. Let me
21:02just quickly show you what I mean,
21:03right? So, over here I've already set my
21:05risk per trade at 0.5% and today let's
21:07say I enter for a buy for EUR/USD and I
21:10want to place my stop loss at 1.17,
21:13okay? So, let's say. And obviously, Edge
21:15Flow will automatically calculate my lot
21:17size based on my balance, right? And
21:19then let's say I want to place my take
21:20profit at 1.19.
21:23Right?
21:24So, this is where if it's a A setup, I
21:27will set it at 0.5%, right? But if if
21:29it's a A+ setup, I might want to set it
21:31to 1%, right? So, this is where I can
21:32press this unlock button and then just
21:35adjust my risk per trade to set it to 1.
21:38Right? And you can see my lot size
21:39literally just doubled.
21:41And this is where I can actually place
21:43the trade.
21:44And if it's a A+ setup, I'll risk 1% on
21:46this setup itself. Yeah, so this is what
21:48I'll recommend you to do. I'll recommend
21:50you to actually
21:52adjust the risk per trade manually to 1%
21:55when you see a A+ setup
21:57on the trading panel before you enter
21:59for the trade, rather than setting it in
22:00your guardrails, right? So, in your
22:02guardrails, just stick to 0.5%. Your
22:04default for risk per trade, it should be
22:06boring. It should be consistent. Okay?
22:08Most importantly, it have to be
22:09consistent,
22:11especially in a prop challenge.
22:13Because prop firms don't fail you
22:14because of one bad trade. They fail you
22:17because you start breaching your risk
22:20management rules. You start hitting
22:22their limits, right? They like to punish
22:25you for breaching risk management rules
22:26more than they punish a normal losing
22:28streak. So, be conservative, stick to
22:310.5%. Uh and the thing about A+ setups
22:33is that it's quite rare, right? A+
22:35setups are really those setups where
22:36they check off every single box. Once
22:38again, I did done the lesson covering
22:39how to define A+ setups, how to look for
22:41them. So, you can check that lesson out.
22:43But when they do appear,
22:45you they kind of earn the right to like
22:47slightly use a little bit more risk,
22:49right? Just 1%. Okay? So, yeah. Just
22:52stick to 0.5% and you'll be fine.
22:54Remember, consistency beats aggression.
22:57If you start sizing your trades
22:58randomly, you you start to neglect your
23:00risk per trade. Sometimes you risk 0.5%
23:03sometimes you risk 2% sometimes you risk
23:055%. Now, your equity curve will also
23:07become random. Okay, there's like a
23:09direct correlation with your actions
23:11being random and the results being
23:13random.
23:14And when you do that, you're going to
23:16breach your trading rules.
23:17But, if you keep your risk consistent,
23:19right? Always sticking to 0.5% you can
23:22survive variance and let your edge play
23:24out. Next up, we've got your trading
23:25window, right? So, for a trading window,
23:27you only want to set your best session
23:30window, right? So, on data, based on
23:32historical performance,
23:34what is the time window that you tend to
23:37perform the best in?
23:39So, for me personally, based on my data,
23:41I figured out that
23:43my trades tend to work out really really
23:45well during the London Q-Zone.
23:47Right? So, that is somewhere within like
23:507:00 a.m. UTC to around 10:00 a.m. UTC.
23:53Which means that during this window,
23:55right? During these 3 hours, I tend to
23:57see the most small trading opportunities
23:59and when I do enter for those trades
24:01itself, those trades tend to play out
24:04within this time window. Right? So, I'll
24:06advise you to like, once again, based on
24:08data, right? Not based on guesswork or
24:10emotions, based on data, find out the
24:12time that you tend to trade perform the
24:15best in, right? Put a start time here,
24:16put an end time here
24:18and just click save changes.
24:20And when you do that,
24:22now you have just set up guardrails.
24:24Right? And you can see all your
24:25guardrails in jail while you are
24:27trading. Your max trades per day, your
24:29trading window, your max loss, your max
24:32profit and also whether you are actually
24:36violating any guardrails, right? It will
24:38always appear right here. If you
24:39actually end up, you know, violating
24:41your trading rules. Okay, so, now that
24:43our core guardrails are set, there's one
24:46more rule that wipes out a ton of prop
24:47accounts and it has nothing to do with
24:49strategy.
24:50And that is news.
24:53Okay, that is news, your economic news.
24:56On Edge4, we actually an ability, right,
24:58to block trading before and after high
25:01impact news. The reason why you want to
25:03block trading before high and after high
25:05impact news is because when high impact
25:07news comes out, the spread start blowing
25:09out of proportion.
25:11Slippage starts spiking.
25:13And then, there's a lot of market
25:15manipulation where price goes up, down
25:18100 pips, and price at both sides grab
25:20all the available liquidity.
25:22And if you trade during news, you are
25:24essentially gambling.
25:26And a lot of prop firms, they would
25:27either restrict trading around news,
25:29which means if you trade around news,
25:32you will fail the challenge.
25:34Or
25:35they will punish you for getting clipped
25:37by that insane volatility that actually
25:39appeared during news.
25:42Right, so highly recommend you not to
25:44trade news. Just come on to news on
25:46Edge4 itself, and you can actually block
25:48trading before and after high impact
25:50news. I would recommend you to set it to
25:5215 minute before and after high impact
25:55news. Right, this way you can really
25:56like just stay away from trading
25:59during that unpredictable pre- period
26:02where there's insane amounts of
26:04volatility. All right, we have turned
26:06the prop firm rules into guardrails. So,
26:08all the biggest failure points are now
26:10blocked.
26:11But, people still fail because of a few
26:13predictable behavioral patterns.
26:17So now, let me show you the most common
26:19ones and the exact Edge4 fix for each.
26:23First of all, revenge trading, right?
26:25This is the fastest way to blow a
26:26challenge. You take one loss, you start
26:29getting emotional, you start trying to
26:30make it back immediately.
26:33Edge4 fixes that with the max daily loss
26:35hard stop, right, the guardrail that we
26:37have literally just said.
26:39And if you still feel triggered,
26:42I would highly recommend you to go
26:43straight into our sanctuary feature
26:46to reset your nervous system, to get
26:49back into mental equilibrium
26:51before you do something stupid.
26:53Next is overtrading.
26:56Most traders don't fail because of one
26:57bad trade. They fail because they take
27:00too many low-quality trades.
27:02They prioritize activity over making
27:05money.
27:06Edge Flow fixes that with max trades per
27:08day
27:09and a shorter trading window. So, you're
27:11only trading your best hours and you're
27:14only trading your best setups.
27:16Next is holding into high-impact news,
27:19right? News volatility. Like I said
27:21earlier on, news is where spreads start
27:22widening, slippage start happening, and
27:25pricing both sides, right? So, there's a
27:27lot of like
27:28unpredictable volatility during news.
27:31And Edge Flow fixes this with news
27:33blocking and allows you to plan in
27:35advance on the economic calendar. You
27:37know exactly what days have high-impact
27:39news and you can trade around it.
27:42Next is risk spikes after win, right?
27:44So, this is a silent killer. You win a
27:46couple of trades, start feeling
27:47euphoric, start feeling invincible, you
27:49start sizing up, and then you take one
27:51bad loss.
27:52And then that one bad loss into one big
27:54loss. And then that one big loss wipe
27:56out your entire progress. You know, you
27:58could be like just 1% away from the
28:00profit target, but then you lose.
28:03And then now you start getting
28:04emotional. Then and then you lose
28:06another trade. And then now you just
28:07wiped out all your gains and you're back
28:08to square one.
28:10You're back to 0% and then eventually
28:11you even go all the way down and breach
28:13your max loss rule, right? Because you
28:15kept trading after the initial loss.
28:18So, Edge Flow fixes this with fixed risk
28:20tiers, right? Allows you to take stick
28:23to a consistent risk per trade every
28:24single time before you enter for a
28:25trade, and we also track your
28:27consistency. So, you stay boring and
28:30consistent.
28:31And giving back profits, right? We all
28:33know the feeling of you making money,
28:35you keep trading, and you donate it back
28:37to the market. The market doesn't need
28:39your money, you guys, right? But you
28:40donate it back to the market because
28:42you're so kind.
28:43Edge Flow fixes this with a profit
28:46target stop and the habit of closing a
28:48session once you've hit your daily goal.
28:50That's it for this lesson itself, right?
28:52Remember, passing a prop firm challenges
28:54really simple. It's just like a game.
28:56Once you understand the rules of the
28:58game, and you
28:59practice it, eventually you're just
29:01going to get good at the game.
29:03So, don't break the trading rules,
29:05stay consistent, and let your edge
29:07compound. Edge flow, get it? Let your
29:09edge compound.
29:11Most people fail because they rely on
29:12willpower, and willpower disappears the
29:14moment emotions hit.
29:16And with Edge Flow, we've turned your
29:17prop firm rules into a system. So,
29:20discipline becomes automatic, and
29:22passing becomes inevitable.

About this transcript

This page contains the full transcript of Market Mechanics Ep 31: How to Pass Prop Firm Challenges by Brad Goh (The Trading Geek), generated from the public captions YouTube serves with the video. The transcript has 5,558 words across 843 segments, with the original timestamps preserved so you can click any line to jump to that moment in the embedded player.

What you can do with it

Use the transcript to take notes, quote the speaker, build a study guide, generate a summary with ChatGPT or Claude via the YouTube Summary tool, or export it as a timed subtitle file with YouTube to SRT. You can also re-open it in the transcriber to choose a caption track available on the video.

Free YouTube transcript tool

YouTube2Text is a free YouTube transcript generator — no signup, no daily limit. Paste any YouTube link and get the full transcript instantly, with timestamps, click-to-jump, caption language selection, AI prompts for ChatGPT, Claude, and Gemini, and exports to TXT, SRT, VTT, or Markdown.