The landscape of proprietary trading has evolved significantly with the emergence of modern firms like OANDA Prop Trader (OPT). These firms offer unique opportunities for traders to showcase their skills and earn substantial profits.However, succeeding in this competitive environment requires a strategic approach.

Here are some essential tips to help you thrive at modern prop trading firms and to succeed as a Prop trader:

The proprietary trading firm industry might still be in its early stages, but it's already facing scrutiny, with numerous firms disappearing overnight. Choosing a reliable firm with a solid track record, like OANDA Prop Trader, has never been more crucial. Imagine completing the 'evaluation process,' making a profit, only to be denied your payout due to the company's collapse—many traders have unfortunately experienced this scenario firsthand.

Additionally, the importance of this factor is underscored by the varying trading styles accepted by different firms. For instance, some companies prohibit trading around high impact news events, while others provide various challenge account types, such as swing trading or single-phase options. While this might seem trivial, it's far more beneficial to partner with a reputable firm that aligns with or is open to your trading style.

Also read: Proprietary trading: Your guide to finding the ideal partner

Understanding the evaluation process is key. You need to know what it takes to pass the challenge and how your profits and losses are counted. This clear understanding helps you get ready, match your trading plan to what the challenge needs, and boost your success chances.

Many traders are so excited to get started that they tend to brush over the rules and requirements. Ensure that you understand all the jargon and the drawdown requirements are crucial. One of the biggest misunderstandings traders face is understanding the static vs trailing maximum drawdown. When a prop firm offers challenges with a trailing drawdown rule, it can mean that as the account goes into profit, the trailing drawdown limit moves in tandem. On the other hand, in a static drawdown, the maximum drawdown limit does not move regardless of whether there is a profit made or loss incurred.

Visit our rules FAQ for the OANDA Prop Trader rules and illustrations of how Maximum Drawdown works.

Other key requirements to pay attention to is whether traders are allowed to hold trades overnight, leverage available and instruments available to trade.

The importance of a trading plan cannot be overstated and is even more important in a prop firm environment. Your plan should outline your strategy, covering entry and exit points, risk management guidelines in line with the evaluation, and your daily or weekly trading goals. It needs to be comprehensive, detailed, and flexible enough to adjust to different market situations.

When trading on an OANDA Prop Trader challenge, it is important that your trading plan fulfils the requirements of the trading conditions.

The urge to deviate from a trading plan is a challenge that plagues most amateur traders. It is important to treat the trading plan like a set of rules and not break them regardless of what happens. Consistency is a key aspect of passing a prop firm challenge to the point that some firms have incorporated a consistency rule. This is to ensure traders that pass are not just getting lucky on one trade and overleveraging their way to success.

Be firm and consistent with your trading plan. If a trade setup does not meet your requirements, rather stay out of the market than attempting to force the issue.

The urge to deviate from a trading plan is a challenge that plagues most amateur traders. It is important to treat the trading plan like a set of rules and not break them regardless of what happens. Consistency is a key aspect of passing a prop firm challenge to the point that some firms have incorporated a consistency rule. This is to ensure traders that pass are not just getting lucky on one trade and overleveraging their way to success.

Be firm and consistent with your trading plan. If a trade setup does not meet your requirements, rather stay out of the market than attempting to force the issue.

As a trader you often hear people talk about developing an edge to your trading and this may sound like a very broad and sweeping statement. It is a simple concept that simply requires traders to acknowledge that technical and fundamental analysis may not always be enough. Adding another resource or data set when making a decision can provide useful insights and assist in decision making.

This is where OANDA Prop Trader excels in adding value, thanks to a suite of tools and data which provides traders with endless opportunity to gain an edge. Tools such as the currency strength meter, order book and position tool, volatility and currency correlation are all useful in providing an edge if used correctly.

For more information on using these tools and incorporating them into your trading visit the OANDA Prop Trader Education section available here: https://proptrader.oanda.com/en/lab-education/trading-knowledge/technical-analysis/

OANDA Prop Trader Tools: https://proptrader.oanda.com/en/lab-education/tools/

Additionally, our senior market analyst, Zain Vawda, shares weekly market insights to help you make sense of the latest developments. These are available on the OANDA Prop Trader social channels with videos released weekly on Youtube.

https://www.youtube.com/@OANDAPropTrader-/videos

Users can also reference the major economic events from our OPT dashboard > Economic Calendar

However, OANDA Prop Trading has restrictions on trading in all instruments during major financial news events.Read more about our news trading rules here https://proptrader-help.oanda.com/can-i-trade-news