I simulated prop firm rules (trailing drawdown, daily loss, consistency) before paying for challenges. Here's what I learned
Most backtests only look at raw P&L. But prop firms don't evaluate raw P&L, they evaluate your strategy against a rule set. So I built a simulation that applies the actual rules of each firm (trailing drawdown, daily loss limit, consistency rule, commissions) on top of the backtest.
I ran two strategies on US30 this way against Tradeify and MyFundedFutures (25K level) and tested them out-of-sample.
What I found:
- Trailing drawdown behaves very differently from a static max loss, so I modeled it separately.
- Daily loss limits catch volatility spikes that a normal session-level backtest hides.
Happy to go into detail on how I modeled any of these, especially the consistency rule. Curious how others here validate before paying for a challenge.
u/Puzzleheaded-Web4347 — 8 days ago