Risk and psychology for prop firm traders

Prop firm rules punish the same few habits over and over: sizing up after losses, chasing back a bad day, and not knowing your own numbers. These pages cover the math behind risk and the habits that keep you inside the rules.

The setups get the attention, but most evaluations end on behavior: the trade after the loss, the size after the win. Start with the math, then the habits.

• Expectancy vs win rate: the math that decides an eval

  How expectancy works with win rate and average win and loss, why 70% winners can still lose money, and what that means for a prop firm evaluation.

• Drawdown recovery math, and why an eval makes it worse

  The math of recovering from a drawdown, and why it's different inside a prop firm eval where the trailing floor doesn't come back down with you.

• Revenge trading: the trade after the loss

  What revenge trading looks like in a futures eval, why the daily loss limit and trailing drawdown make it so expensive, and a simple stop rule that works.

• A trading journal that changes how you trade

  What to log in a futures trading journal for a prop firm eval, the four numbers to review weekly, and how to turn the journal into one change at a time.