A prop firm trading plan should connect an independently tested strategy to the exact account's constraints. A written plan can expose missing decisions; it cannot create an edge or guarantee a pass.

Use the template below as a working document. Fill in unknown rules from the provider's current contract before paying or trading. Record the programme and stage because the same company can offer materially different products.

Build a rule sheet first

Separate the profit objective from the loss rules. For each loss rule record its reference value, update time, reset timezone, treatment of open profit/loss and fees, and breach condition. Write down whether touching a floor is enough to fail.

For example, FTMO's current product comparison distinguishes its CFD 1-Step and 2-Step conditions. A copied company-level checklist cannot substitute for the correct programme's objectives.

Also record allowed instruments, trading hours, news restrictions, overnight holding, automation, copying, inactivity, billing or expiry, and the conditions after passing. Mark a rule “not applicable” only when the provider confirms that interpretation.

Turn remaining room into planned exposure

Consider a hypothetical account with $1,500 to its total loss floor and $900 remaining under its daily limit. The tighter account constraint is $900. Suppose the trader chooses a separate personal session cap of $300 and budgets at most three full-loss trades. That permits a planned $100 per trade, including estimated costs; slippage can still make the realised loss larger.

Those figures illustrate arithmetic, not a recommended risk level. Concurrent positions consume the same budget. If available room shrinks, a position that was affordable earlier may no longer fit.

Do not confuse the nominal allocation with spendable risk capital. Nor does dividing a daily cap by a trade count force the strategy to produce that number of opportunities.

Describe entries and exits precisely

Define the instrument, setup conditions, order type, invalidation level and maximum position size. Record whether partial exits or stop adjustments are allowed by the strategy. The expected return must be assessed after costs; a chosen reward-to-risk ratio by itself does not establish profitability.

Include an execution exception plan. Stops are not guaranteed fill prices, and a stop-limit can fail to execute. See the SEC's order-type explanation.

Plan the session without a compulsory profit quota

Choose a trading window that fits the strategy and your availability. Record timezone and daylight-saving treatment. Check the economic calendar and the exact account restrictions before the session.

A daily profit quota is not a substitute for a consistency calculation. A best-day rule depends on the programme's actual numerator, denominator, threshold and observation period. Dividing a target by thirty does not guarantee compliance, and losses can change the ratio later. See our consistency-rule guide.

One-page template

ACCOUNT AND SOURCE
Firm / legal entity:
Programme / purchase version / stage:
Rules URL and saved date:
Profit objective / minimum days / expiry / renewal:

LOSS CONTROLS
Current equity:
Daily reference / current daily room / reset timezone:
Total floor / calculation reference / update time / cap:
Unrealised P&L and fee treatment:
Personal session stop:
Maximum planned loss per trade including estimated costs:
Combined open-position risk:

EXECUTION
Instrument / session and timezone:
Entry conditions:
Order type / invalidation / exit conditions:
Event, holding, copying and automation restrictions:
Disconnect and emergency exit procedure:

STOP AND REVIEW
What causes a pause:
How positions and pending orders are checked before logout:
Trade log location:
Evidence required before resuming or changing the strategy:
Maximum total evaluation spending:

Test the plan and revise deliberately

Run the plan in simulation through favourable and adverse periods. Compare intended and actual costs, rule calculations and fills. A profitable rehearsal remains limited evidence, especially with few trades or unrealistic execution.

After each session, separate strategy losses from process errors. If a rule was unclear, resolve it before the next trade. If the strategy no longer meets its assumptions, pause and investigate; following an invalid plan more consistently will not repair it.

Risk Disclaimer: Trading involves substantial risk of loss. Past performance is not indicative of future results. See our full risk disclaimer.