Passing a prop firm challenge requires more than just basic trading knowledge — you need a repeatable, reliable strategy tailored to the firm’s rules. With strict drawdown limits, profit targets, and evaluation periods, not all trading systems will work.
That’s why we’ve compiled the Top 5 Prop Firm Trading Strategies that have helped real traders pass their evaluations and manage funded accounts consistently.
These aren’t magic tricks — they’re solid frameworks designed to respect risk, control emotions, and deliver consistent results under pressure.
🥇 1. Break and Retest Strategy
Best For: Trend-following setups during volatile sessions (London/New York)
Why It Works for Prop Firms:
- Easy to define entry/exit points
- Avoids chasing price
- Clear invalidation levels reduce risk
🔧 How It Works:
- Identify a key resistance or support level
- Wait for a breakout (with volume confirmation)
- Enter on the first clean retest of the level
- Place SL below/above the zone and aim for a 1:2 or 1:3 R:R
🧪 Example:
On GBP/USD, if price breaks above a weekly resistance, wait for it to retest that level. Enter on confirmation candlestick (like a bullish engulfing) and target the next resistance.
📌 Pro Tip:
Use TradingView alerts to get notified on key level touches. This helps you stay patient and disciplined.
🥈 2. London Breakout Strategy
Best For: Morning traders who want quick, structured trades
Why It Works for Prop Firms:
- Time-based entry
- Minimal screen time
- Suitable for 1–2 trades per day
🔧 How It Works:
- Mark the high/low of the Asian session (00:00–06:00 GMT)
- Set buy stop above the high and sell stop below the low
- Trigger trade as London opens (~07:00–08:00 GMT)
- Set TP = 2x SL or use trailing stops
🧪 Example:
On EUR/USD, if the Asian range is tight (~20–30 pips), breakout during London often moves 40–80 pips.
⚠️ Caution:
Avoid this during high-impact news releases like NFP or CPI.
🥉 3. Supply and Demand Zones
Best For: Swing traders or those using higher timeframes (1H, 4H, Daily)
Why It Works for Prop Firms:
- Focuses on institutional levels
- Encourages patience
- Low trade frequency = fewer emotional decisions
🔧 How It Works:
- Identify zones where price had an aggressive move (impulse)
- Wait for price to return to the zone
- Enter with confirmation (candlestick + volume)
- SL just outside the zone; TP at next zone
🧪 Example:
On US30, price reacts to demand zones formed after institutional accumulation. Enter on retest with confluence from RSI divergence or MACD crossover.
✅ Tip:
Combine zones with market structure breaks for best results.
🏅 4. Trendline + Structure Trading
Best For: Traders who like dynamic S&R and trend continuation setups
Why It Works for Prop Firms:
- Works in trending markets
- Easy to manage risk
- Visually clean strategy
🔧 How It Works:
- Draw a trendline connecting at least 3 swing highs/lows
- Trade bounces or breaks of the trendline depending on context
- Add confirmation from a higher timeframe (4H or Daily)
- Combine with Fibonacci retracements or moving averages
🧪 Example:
On Gold (XAU/USD), trendline breaks on the 15M chart after a London session rally can provide clean entries for 30–50 pips.
🏆 5. Moving Average Pullback Strategy
Best For: Intermediate traders using indicators for structure
Why It Works for Prop Firms:
- Objective entries (based on indicators)
- Smooth trend-following
- Easy to automate or systemize
🔧 How It Works:
- Use 50 EMA (trend) and 200 EMA (overall structure)
- Identify pullbacks in trend direction
- Enter on candle close that rejects the EMA
- SL below/above wick; TP = 2x SL or at previous S/R
🧪 Example:
On AUD/USD, if 50 EMA is above 200 EMA, and price pulls back to 50 EMA with a bullish engulfing, enter long.
📌 Indicator Tip:
Add MACD or RSI for extra confirmation. Wait for MACD crossover near the EMA zone.
🧠 Bonus: Choosing the Best Strategy for Your Trading Personality
Not every strategy will suit you. Here’s how to choose:
| Trader Type | Best Strategy |
|---|---|
| Scalper | London Breakout |
| Swing Trader | Supply/Demand Zones |
| Trend-Follower | EMA Pullback or Trendline |
| Price Action Purist | Break & Retest |
| System Trader | MA Pullback + Indicators |
🔍 Test your preferred strategy on a demo with the same challenge rules.
🔗 You May be Interested in these Posts
- How to Pass a Prop Firm Challenge (Full Guide)
- Forex Prop Firm Psychology: Control Emotions and Win
- Best Forex Pairs to Trade During a Challenge
Prop firm trading isn’t about doing something fancy — it’s about executing something simple, consistently and professionally.
These top 5 prop firm trading strategies are trusted by thousands of traders who’ve passed their challenges and now manage funded accounts. Choose one that aligns with your style, test it thoroughly, and stay disciplined.
Your edge isn’t the strategy — it’s how well you execute it under pressure.