How to beat a prop firm evaluation
A 50K evaluation is a race: make $3,000 before you give back $2,000. This is how our algorithm, Atty Prop ORB, runs it on Nasdaq and small-cap futures. The trade, the size, every year since 2018, the odds, and the years it lost.
Where this came from
People ask how the algorithm gets through a prop evaluation, and what the numbers look like once you go past the headline win rate. This is the long answer. Every figure here was rebuilt from the backtest trade lists for this article, and the weak years are shown next to the strong ones.
What you are up against
A typical prop firm's 50K evaluation gives you one job: make $3,000 before the account falls $2,000 below its best closing balance. Many firms add a consistency rule. In the one modelled here, no single day can be more than half of the profit.
Two things follow from that. First, the $50,000 is a label. What you have to work with is the $2,000 of drawdown, and what you can lose is the evaluation fee. Second, one big win will not pass it. You need a run of ordinary winning days that never gives back $2,000 along the way.
So the trade that fits is small, repeatable and sized the same every day. Prop ORB was built to be that trade. The rest of this article is whether it holds up.
What the algorithm does
Each morning the algorithm marks the opening range and waits for price to close outside it. When that happens it enters in the direction of the break with a stop and a target already set. Position size comes from the distance to the stop, so every trade risks the same dollar amount. It takes at most two trades per symbol per day, and a daily loss stop ends the session early when the morning goes wrong.
The test below runs those rules on two markets in one account: Nasdaq futures at $500 of risk per trade, and small-cap futures at $150 on a setting of their own. Commission is $0.50 per contract per side, and every fill is charged one tick of slippage.
A high win rate has a price
The target sits closer than the stop. That is why the trade wins often, and it is also why a win rate on its own tells you very little. From September 2024 to August 2026 the average Nasdaq win was $157 and the average loss was $423. One loss cancels about 2.7 wins, so the trade has to win 73% of the time before it makes a dollar.
It won 77.4%. The whole edge is that gap of about 4.5 points, which produced a profit factor of 1.27 over 707 trades.
The number to watch
When someone shows you a strategy that wins 75% or 80% of the time, ask what the break-even win rate is. A target smaller than the stop gets hit most of the time on almost any market. The question is whether it gets hit more often than the arithmetic needs.
Both markets, year by year
Here is every calendar year since 2018. A profit factor above 1.0 means the year made money after costs.
| Year | Nasdaq trades | Win rate | Profit factor | Net at $500 risk | Small-cap trades | Win rate | Profit factor | Net at $150 risk |
|---|---|---|---|---|---|---|---|---|
| 2018 | 377 | 70.8% | 0.79 | -$11,416 | 240 | 57.9% | 0.93 | -$954 |
| 2019 | 371 | 77.4% | 1.11 | +$4,714 | 239 | 58.6% | 1.02 | +$309 |
| 2020 | 387 | 73.1% | 0.92 | -$4,063 | 234 | 59.4% | 1.01 | +$125 |
| 2021 | 379 | 71.8% | 0.88 | -$6,200 | 232 | 65.5% | 1.46 | +$4,107 |
| 2022 | 382 | 75.9% | 1.14 | +$5,604 | 239 | 63.2% | 1.26 | +$2,606 |
| 2023 | 382 | 72.0% | 0.90 | -$4,806 | 220 | 60.9% | 1.12 | +$1,214 |
| 2024 | 387 | 74.7% | 1.04 | +$1,663 | 221 | 60.6% | 1.20 | +$1,848 |
| 2025 | 367 | 77.1% | 1.25 | +$8,997 | 235 | 57.9% | 1.00 | -$35 |
| 2026* | 267 | 78.3% | 1.41 | +$9,428 | 144 | 61.8% | 1.27 | +$1,532 |
| All years | 3,299 | 74.4% | 1.01 | +$3,920 | 2,004 | 60.6% | 1.11 | +$10,752 |
Over all 9 years the Nasdaq trade is close to flat: a profit factor of 1.01 on 3,299 trades. The money was made from 2024 on. We read that as a strategy that fits the current market, and we treat it that way. The settings are tested again on new data as it arrives, and they will be changed if the pass rate in the next section falls away.
If you plan to trade this, plan for the weak years too. A stretch like 2023 can come back, and nothing in a backtest tells you when.
Why small caps, and why so small
Traders often add markets to an evaluation hoping they will not all lose on the same day. In our earlier tests the S&P 500, crude oil, gold and the Dow each lowered the pass rate when added to Nasdaq. They either lost money after costs or lost on the same days Nasdaq did.
Small caps were the one addition that helped, and only on a setting of their own. That version wins 61% of the time against a break-even of 58%, with a profit factor of 1.11 over 2,004 trades. Its daily results move independently of Nasdaq (correlation -0.06 over the last two years), and it was positive on 59% of the days Nasdaq lost.
The size stays small on purpose. At $150 a trade a small-cap win is never large enough to turn a losing Nasdaq day into a winning one. It trims the bad days and adds a little on the good ones. In the evaluation model that moved the pass rate from 66.5% to 67.8% and cut the median time to pass from 47 trading days to 44. It is a small help, and larger small-cap sizes made things worse on recent data in our earlier tests.
The odds inside a typical 50K evaluation
We fed the last two years of daily results through the evaluation rules above 20,000 times, starting from different points, and gave each attempt 12 months.
- 67.8% passed and 32.2% hit the drawdown first.
- The median pass took 44 trading days, about two months.
- 68% of trading days closed green.
- 50% of sessions made $150 or more, which is the size of day many firms count toward a payout.
Risk per trade changes the picture more than anything else. The chart runs the Nasdaq trade alone at four sizes.
Sizing up does not improve the odds. It gets you an answer sooner. $500 is the size this article uses because it passes about as often as $250 in about a third of the time, and a winning day is large enough to count toward a payout: 54% of sessions made $150 or more at $500, against 10% at $250.
2026 so far
From 2 January to 22 October 2026 the pair took 457 trades on real Micro Nasdaq and Micro Russell bars. Nasdaq won 78.7% of 267 trades for a profit factor of 1.46. Small caps won 60.5% of 190 for 1.21.
We also walked a plan through the same trades: buy one typical 50K evaluation every Monday, trade every account the same way, and ask for a payout only once it reaches $1,000. Of 13 evaluations bought, 10 passed and none blew up before passing. The funded accounts were paid 19 times. Still, 3 funded accounts blew up, all of them after taking payouts.
The walk stops in late July, when the first account took its fifth payout. Many firms move a trader to a live account at about that point, and the rules change there. The last 3 evaluations were still open when it stopped.
Five rules for the account
The trade is half of it. The other half is how the account is handled. These come from our account models and from the numbers above.
- Pick a firm whose payout day fits the trade. Many firms only count a day toward a payout when it makes $150, $200 or $250. Over the last two years 50% of this pair's sessions made $150 or more, 41% made $200 and 24% made $250. Raising risk to reach a higher bar raises the blow-up rate with it, as the risk chart shows.
- Keep the same size once funded. Cutting risk on a funded account looks safe, but winning days stop being large enough to count toward a payout. At one-third risk no funded account in the model ever qualified for one.
- Wait for a larger first payout. After a payout the drawdown floor locks a little above the starting balance while the balance drops by what you took out. A bigger profit before the first request leaves more room afterwards.
- Bigger accounts were not better. On a typical 100K or 150K plan the target is twice the drawdown, against one and a half times on the 50K. The same plan earned less on the bigger accounts in our model.
- Accounts fail together. Every account takes the same trades, so a bad week hits all of them. Several accounts spread your purchase dates. They do not spread your risk.
What could be wrong
- The good results are recent. The pass rates above use September 2024 to August 2026, the period these settings fit. The year table shows what the same rules did before that.
- Small caps before 2026 were tested on an ETF. We used IWM bars priced as Russell futures, then checked them against real Micro Russell bars for a year: the first trade of the day matched on 96% of sessions.
- Fills are modelled. One tick of slippage is an assumption. The 2026 section uses real futures bars with commission and no slippage.
- The evaluation is a model of one rule set. Firms differ on consistency rules, minimum days and how the drawdown trails. Read yours.
- These are simulated results. Nobody traded these accounts. Real trading adds missed sessions, slower fills and the days you switch it off.
Method
- Data
- 1-minute bars. Nasdaq futures from 2 January 2018 to 22 October 2026, priced as the micro contract. Small caps from IWM bars priced as Russell futures, 2 January 2018 to 6 August 2026, and real Micro Russell bars for 2026.
- Trades
- 3,299 Nasdaq and 2,004 small-cap trades. $500 and $150 of risk per trade, sized to each trade's own stop. $0.50 commission per contract per side and 1 tick of slippage, except the 2026 section, which has commission and no slippage.
- Evaluation model
- Start $50,000, pass at $53,000 with a 50% consistency rule, $2,000 end-of-day trailing drawdown that locks at $50,100, 40 micro contracts at most, a breach whenever the day's worst point touches the floor. 20,000 resampled 12-month paths drawn in blocks of days from 483 sessions, 3 September 2024 to 6 August 2026.
- What is not shown
- The strategy's exact settings. They belong to the product.