The Trading Pit Challenge Analysis

What is the Trading Pit Challenge program? What are its rules? Find out in this expert post.

Looking to sign up for the Trading Pit challenge? Then this post is for you.

Here, we’ll explain the rules and requirements of the popular prop firms challenges and share some insights which might make your trading journey easier.

The Trading Pit Challenge Programs: Rules and Requirements

The Trading Pit provides its traders with a selection of four one-step challenge accounts to pick from.

One-step challenge program account

The Trading Pit has launched a new CFD challenge account that aims to acknowledge and incentivize proficient and committed traders based on how they perform in a single evaluation session. This program provides a one-step challenge for individuals to engage in trading with a leverage ratio of 1:30.

Traders must meet a profit goal of 10% during the review period, although accounts with €100k have a slightly lower aim of 8%. Participants are required to adhere to the guidelines of a maximum daily loss of 5% and a maximum loss of 10%.

A trailing drawdown is implemented for accounts with balances of €10,000 and €20,000, whilst a static drawdown is implemented for accounts with balances of €50,000 and €100,000. The assessment phase has a strict time limit of 90 consecutive days, during which traders are required to engage in trading activities for a minimum of three days to advance to a funded account.

Upon completing the one-step challenge, people will be awarded a funded account with a profit target of either 8% or 10%, depending on the size of their account. The 5% limit on daily losses is still obligatory, but the maximum decline is now regulated by a rule that allows for a trailing loss of up to 10%.

Upon reaching their profit target, members have the option to seek an initial profit split of either 50% or 60%, depending on the size of their account. This accomplishment enables them to expand their account to the next level.

Additional withdrawals can only be made after achieving the subsequent 10% profit milestone. The percentage of profit to be shared in future withdrawals will vary between 50% and 80%, depending on the individual’s starting account size as well as the current level of their trading account.

One-step Challenge Account Scaling Plan

The one-step challenge account includes a scalability strategy. Someone must achieve a profit goal of either 8% or 10% based on the initial account balance, which will vary depending on the size of the account. It is important to be aware that the scale varies between €500,000 and €5,000,000, depending on the amount of the account they are trading on.

Below, find the scaling plan for the two-step challenge accounts:

Levels	Account Balance	Profit Target	Daily Drawdown(STATIC)	Max Drawdown(Tarling On Open Positions)	Profit Share %	Payout WithdrawableAt Every Level
Level 1	€10,000	10%	5%	10%	50%	€500
Level 2	€20,000	10%	5%	10%	50%	€1,000
Level 3	€40,000	10%	5%	10%	55%	€2,200
Level 4	€60,000	10%	5%	10%	55%	€3,300
Level 5	€100,000	10%	5%	10%	60%	€6,000
Level 6	€150,000	10%	5%	10%	60%	€9,000
Level 7	€200,000	10%	5%	10%	65%	€13,000
Level 8	€250,000	10%	5%	10%	65%	€16,250
Level 9	€350,000	10%	5%	10%	65%	€22,750
Level 10	€500,000	10%	5%	10%	70%	€35,000

Standard Challenge Account Scaling Plan

Levels	Account Balance	Profit Target	Daily Drawdown(STATIC)	Max Drawdown(Tarling On Open Positions)	Profit Share %	Payout WithdrawableAt Every Level
Level 1	€20,000	10%	5%	10%	50%	€1,000
Level 2	€40,000	10%	5%	10%	50%	€2,000
Level 3	€60,000	10%	5%	10%	55%	€3,300
Level 4	€80,000	10%	5%	10%	55%	€4,400
Level 5	€100,000	10%	5%	10%	60%	€6,000
Level 6	€150,000	10%	5%	10%	60%	€9,000
Level 7	€200,000	10%	5%	10%	65%	€13,000
Level 8	€250,000	10%	5%	10%	65%	€16,250
Level 9	€500,000	10%	5%	10%	65%	€32,500
Level 10	€750,000	10%	5%	10%	70%	€52,500

Executive Challenge Account Scaling Plan

Levels	Account Balance	Profit Target	Daily Drawdown(STATIC)	Max Drawdown(Tarling On Open Positions)	Profit Share %	Payout WithdrawableAt Every Level
Level 1	€50,000	8%	5%	10%	60%	€2,400
Level 2	€100,000	8%	5%	10%	60%	€4,800
Level 3	€150,000	8%	5%	10%	60%	€7,200
Level 4	€200,000	8%	5%	10%	65%	€10,400
Level 5	€300,000	8%	5%	10%	65%	€15,600
Level 6	€400,000	8%	5%	10%	70%	€22,400
Level 7	€500,000	8%	5%	10%	70%	€28,000
Level 8	€650,000	8%	5%	10%	75%	€39,000
Level 9	€850,000	8%	5%	10%	75%	€51,000
Level 10	€1,000,000	8%	5%	10%	80%	€64,000

VIP Challenge Account Scaling Plan

Levels	Account Balance	Profit Target	Daily Drawdown(STATIC)	Max Drawdown(Tarling On Open Positions)	Profit Share %	Payout WithdrawableAt Every Level
Level 1	€100,000	8%	5%	10%	60%	€4,800
Level 2	€150,000	8%	5%	10%	60%	€7,200
Level 3	€200,000	8%	5%	10%	65%	€10,400
Level 4	€300,000	8%	5%	10%	65%	€15,600
Level 5	€400,000	8%	5%	10%	70%	€22,400
Level 6	€500,000	8%	5%	10%	70%	€28,000
Level 7	€650,000	8%	5%	10%	75%	€39,000
Level 8	€850,000	8%	5%	10%	75%	€51,000
Level 9	€1,000,000	8%	5%	10%	80%	€64,000
Level 10	€5,000,000	8%	5%	10%	80%	€320,000

The accessible trading instruments for one-step challenge accounts encompass a wide range of options, including FX pairings, commodities, indices, bonds, stocks, and cryptocurrencies.

One-step Challenge Account Rules

Profit Target: A predetermined % of the profit that traders should attain to successfully conclude an evaluation period, extract earnings, or expand the size of their accounts. The one-step challenge sets the profit target at either 10% or 8%, based on the size of the account. Funded accounts adhere to a profit target of either 8% or 10% to withdraw profits and scale the account. The specific profit target depends on the size of the initial account.
Maximum Daily Loss: The highest permissible amount of daily loss for traders before the account is deemed to be in violation. Irrespective of the total amount of the account’s balance, the maximum daily loss is capped at 5%.
Maximum Loss: It refers to the highest permissible cumulative loss that can occur before an account is deemed to have been in breach. During the evaluation phase, all account sizes have a maximum loss threshold of 10%.
Maximum Trailing Drawdown: The maximum drawdown refers to the largest decline in an account’s balance from its peak value. Once the funded status is achieved, all account sizes will have a maximum trailing drawdown of 10%. It is important to be aware that account sizes of $10,000 and $20,000 also encounter tail drawdowns throughout the review phase.
Minimum Trading Days: The minimum period during which traders must participate in trading before concluding an evaluation stage or making a withdrawal request. The evaluation step mandates a minimum trading day prerequisite of 3 days.
Maximum Trading Days: The uppermost timeframe in which traders are required to achieve a particular profit or withdrawal objective. The evaluation phase has a trading duration limit of 90 trading days.
No Copy Trading Allowed: Traders are not permitted to use any type of copy trading services on the site.

Upgrade Options For the Two-step Challenge Account

Account Size	Reset Option Fee	Extend Option Fee
€10,000	€49	€99
€20,000	€85	€179
€50,000	€120	€399
€100,000	€299	€999

1. Reset option: If, someone qualifies for a fresh start at a reduced cost. A new account will be created, granting access to the remaining duration of the challenge. If someone opts to reset the account within five days after the initial transaction, the newly created account will commence with the remaining 85 days. There is no restriction on the number of resets one can obtain. In the event of an account breach, users will be sent an email containing a distinctive link that enables them to reset & continue their challenge.

2. Option 2: Someone has the opportunity to purchase an extension that will meet the requirements. For instance, if anyone has a remaining duration of three days before the challenge concludes, then have the opportunity to prolong the trading period by an extra 90 calendar days.

The Trading Pit Challenge: Tips for New Traders

As a highly experienced forex prop trader, I’ve navigated numerous challenges and learned valuable lessons along the way. Here are some key tips to help you, as a beginner, increase your chances of winning the Trading Pit challenge:

1. Understand the Rules Inside Out

Before you start trading, make sure you fully understand the challenge’s rules. Know the profit targets, maximum drawdown limits, and any trading restrictions. This knowledge allows you to tailor your trading strategy to fit within these parameters, maximizing your chance of success.

For example, unlike many prop challenges, the Trading Pit challenge doesn’t have a time limit. This means you can focus on strategies which are solely focused on reaching the target profit without the time restraint.

2. Develop a Solid Trading Plan

A well-thought-out trading plan is crucial. This should outline your trading strategy, risk management rules, and how you plan to achieve the challenge’s goals. Decide on the currency pairs you’ll focus on, determine the best times to trade, and establish how you’ll manage losses. Your trading plan should be your blueprint throughout the challenge.

3. Prioritize Risk Management

The most common reason traders fail prop challenges is not due to lack of profitable trades, but because they fail to manage risk effectively. Set strict rules for how much of your account you will risk on a single trade and stick to it. Use stop-loss orders to protect each trade, and remember, preserving your capital is as important as making profits.

4. Start Small and Scale Gradually

Resist the temptation to take large positions early on. Start with smaller trades to get a feel for the market and the challenge conditions. As you become more comfortable and accumulate profits, you can gradually increase your trade size, always adhering to your risk management rules.

5. Keep Emotions in Check

Trading can be an emotional rollercoaster, especially in a high-stakes environment like a prop trading challenge. It’s essential to maintain discipline and not let emotions drive your trading decisions. Whether you’re on a winning streak or facing losses, stick to your trading plan and risk management rules.

6. Learn from Every Trade

Maintain a trading journal where you document each trade, including your rationale, the outcome, and any lessons learned. This practice can be incredibly insightful, helping you to refine your strategy and avoid past mistakes.

7. Stay Informed

Keep abreast of market news and events that could impact currency movements. Economic indicators, geopolitical events, and central bank decisions can all cause volatility in the forex market. Use this information to make informed trading decisions.

8. Leverage Educational Resources

Many prop firms offer educational resources, webinars, and mentorship programs. Take advantage of these to enhance your trading knowledge and skills. Learning from experienced traders can provide valuable insights that you can apply to your own trading.

9. Practice Makes Perfect

Consider practicing your strategy on a demo account before taking on the challenge. This can help you refine your approach and get accustomed to the trading platform without any risk.

10. Stay Persistent and Learn from Failure

Even experienced traders face setbacks. What sets successful traders apart is their ability to learn from failures and persist. If you don’t succeed in your first challenge, analyze what went wrong, adjust your strategy, and try again.

Winning a prop trading challenge as a beginner is certainly challenging, but with diligent preparation, a disciplined approach, and continuous learning, you can significantly increase your chances of success. Remember, every trader’s journey is unique—focus on developing your skills and finding a strategy that works best for you.