Prop trading, or trading a firm’s capital, allows you to leverage company funds for greater profit potential without risking personal finances. SiegFund provides a range of beginner resources, including tutorials on market trends and trading dynamics, which offer a strong starting foundation. These materials ensure you’re well-prepared before entering the challenge phase.

Understanding Passing Targets and Rules

Before executing trades, it’s vital to know SiegFund’s passing targets and rules. SiegFund’s challenge structure includes specific targets, designed to encourage consistency:

• 1-Step and 2-Step Targets:

The 1-step process focuses on achieving a set profit target within a limited number of trades, ensuring that you maintain consistency without excessive risk-taking.

The 2-step process extends this to test consistent profitability, requiring traders to meet profit targets over multiple stages.

• Consistency Rule: This ensures traders avoid high-risk behaviors and remain disciplined, reinforcing steady growth over volatile profits.

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These targets promote a controlled approach to trading, reducing the likelihood of unnecessary risk.

Avoiding Hard Breach Conditions

SiegFund’s Hard Breach Conditions are designed to safeguard both traders and the firm’s capital. These include:

• Maximum Daily Drawdown (MDD): This sets a cap on how much loss can be sustained within a single day. For the 1-Step Challenge, the maximum drawdown is limited to 6%, while for the 2-Step Challenge, it’s capped at 10%. Breaching this rule will terminate the challenge.

• Daily Loss Limit: This rule ensures that losses remain within a manageable threshold, helping traders avoid risky attempts to recover quickly from losses. The 1-Step Challenge has a daily loss limit of 3%, whereas the 2-Step Challenge allows up to a 5% daily loss. Learn how to calculate your daily loss

Understanding and adhering to these specific conditions can help traders approach challenges with greater discipline and a clearer sense of boundaries.

Building and Testing Your Strategy

With the targets and breach conditions in mind, focus on crafting a sound strategy through market research and simulations. SiegFund provides real-time market data, simulation tools, and historical insights to help you create, test, and adjust your model. Testing your strategy through simulations enables you to refine your approach without risking real capital, giving you confidence before executing it in live trading.

Executing and Monitoring Your Progress

When you’re ready to go live, stay focused on monitoring both your strategy’s performance and your adherence to SiegFund’s targets and breach rules. SiegFund’s continuous monitoring tools offer real-time updates, helping you track trades effectively and respond to market changes while staying within limits.  

By understanding SiegFund’s challenge rules, passing targets, and hard breach conditions, you can approach the prop trading journey with both clarity and control. This guide and SiegFund’s tools equip you with the necessary insights for both strategic planning and disciplined execution, setting you on the path to success.