What is a prop firm?
A prop firm gives qualified traders access to a funded account or simulated funded account. Traders usually have to follow strict risk rules before receiving payouts.
Free funded trader toolkit
Prop firm tools and plain answers for new funded traders.
PropFirmNotebook helps traders understand prop firm rules, funded accounts, trading teams, drawdown, position sizing, daily loss limits, risk management, and challenge planning without long articles.
All nine tools
Built for the moments traders usually get in trouble.
Drawdown
Risk
Daily limit
Planning
Tracker
Survival
Setup Quality
Execution
Payouts
Trailing Drawdown Calculator
Estimate the moving floor, account cushion, and safer risk range.
Position Size Calculator
Turn account size, stop distance, and risk percent into a cleaner trade size.
Daily Loss Limit Calculator
Know when to stop before a bad day becomes a rule violation.
Challenge Planner
Break a profit target into calmer daily and risk numbers.
Evaluation Progress Tracker
Track target progress, remaining drawdown room, and what is still needed.
Risk of Ruin Calculator
See how win rate and risk affect long-term survival.
Reward to Risk Calculator
Know if a trade setup makes mathematical sense.
Lot Size Calculator
Convert risk parameters into exact lot quantities.
Profit Split Calculator
Know exactly what you will take home.
Trader questions
Short answers for the searches new traders actually make.
How do funded trader accounts work?
Most funded trader programs require an evaluation first. The trader must reach a profit target while staying inside daily loss, maximum loss, and drawdown rules.
What is a prop firm challenge?
A prop firm challenge is an evaluation where a trader tries to hit a profit target without breaking risk rules. Passing can lead to a funded account or payout-eligible account.
What is trailing drawdown?
Trailing drawdown is a loss limit that can move upward as the account reaches new highs. It is one of the most common reasons traders fail evaluations.
What is daily drawdown?
Daily drawdown is the amount a trader can lose in one day before violating the account rules. Some firms count open losses, so traders should check equity and not just closed trades.
How much should I risk per trade in a prop firm challenge?
Many new traders use smaller risk, such as 0.25% to 1% per trade, so one losing streak does not end the account. The right number depends on the firm's rules and the trader's plan.
Are trading teams allowed at prop firms?
Some firms allow teams, trade copiers, or managed accounts, while others ban them. Always read the official rules before sharing signals, accounts, devices, or strategies.
Can beginners pass prop firm evaluations?
Beginners can pass, but many fail because they focus on the target before learning risk control. A slower plan with smaller position size is usually safer than forcing trades.
How do prop firm payouts work?
Payouts usually depend on profit split, minimum trading days, consistency rules, and withdrawal windows. The exact rules are different at each firm.
What is a good prop firm risk plan?
A good plan starts with the maximum loss, daily loss limit, target, and planned risk per trade. The goal is to survive long enough for good trades to matter.
What is position sizing?
Position sizing is choosing trade size based on account size, stop distance, and risk amount. It helps traders avoid oversized trades that can break account rules.
What should I check before joining a prop firm?
Check profit target, daily loss, maximum loss, drawdown type, payout rules, news rules, weekend holding, consistency rules, and whether your trading style is allowed.
Learning paths
Start with the problem you are trying to solve.
Brand new to prop firms
Trying to pass a challenge
Fixing risk management
Tracking a funded account