To pass a prop firm challenge, you need to reach a profit target without ever letting your equity touch the daily or maximum loss floor. That is the whole game. Most traders who fail do not lack setups; they lose control of size on one or two bad days. This guide shows how to pass a funded challenge on Indian markets with rupee maths, simple routines and a checklist you can print.
01Know your challenge numbers in rupees
Percentages feel abstract. Rupees do not. Before your first trade, convert every rule on your plan into an exact amount and write it where you will see it. The full rules page lists each plan, but here is how the 2-Step plan looks on the two most popular sizes.
| Rule (2-Step) | ₹5L account | ₹10L account |
|---|---|---|
| Phase 1 target (8%) | ₹40,000 | ₹80,000 |
| Phase 2 target (5%) | ₹25,000 | ₹50,000 |
| Daily loss limit (4%) | ₹20,000 | ₹40,000 |
| Maximum loss (8%, static) | ₹40,000 | ₹80,000 |
| Max loss floor | ₹4,60,000 | ₹9,20,000 |
| Minimum trading days | 5 per phase | 5 per phase |
Notice something important. On the 2-Step plan, the maximum loss equals the Phase 1 target. You are allowed to lose as much as you need to make. That symmetry rewards patience: you do not need a high win rate, only losses that stay smaller than your wins.
Two more facts shape everything. First, limits are measured on equity, which includes open profit and loss. Second, the maximum loss floor is static. On a ₹10L account it sits at ₹9,20,000 and stays there, even after you make ₹1L. To understand how the daily floor moves each morning, read our guide to daily and maximum drawdown.
02Pick the right plan and account size
The plan you choose decides how much room you have to be wrong. Choose it based on how you trade, not on which number looks impressive.
2-Step
Targets of 8% then 5%, a 4% daily loss and an 8% static maximum loss. The widest loss room relative to target. Best suited to most option buyers and intraday traders.
1-Step
A single 10% target with a 3% daily loss and 6% static maximum loss. Faster in structure but tighter. It suits traders with a proven, steady record of small drawdowns.
Instant
No target and funded from day one, but a 2% daily loss and a 5% trailing maximum loss. It demands very tight control from the first trade.
On size, pick the account where your normal trade fits comfortably. If you usually trade one or two lots of NIFTY options, a ₹5L or ₹10L account gives you sensible room. Jumping to ₹50L does not change your edge; it only makes each mistake larger in rupees and heavier emotionally. Compare fees on the pricing page, and if you are unsure which structure fits, our comparison of 1-step vs 2-step challenges walks through it.
03Risk per trade: the maths that passes challenges
Risk per trade is the rupee amount you lose if your stop-loss is hit. It should be decided before entry, and it should be small relative to your daily limit.
A practical range for most traders is 0.25% to 0.5% of the starting balance. Here is what that means in rupees.
Sixteen consecutive full losses is extremely unlikely if your setup has any edge. That is the cushion you are buying with small size.
Eight net winning trades at twice your risk reaches Phase 1. Spread across several weeks, that is realistic for a steady trader.
Compare that with a trader risking 2% per trade on ₹10L, which is ₹20,000 a trade. Two losses end the day at the hard limit. Four bad trades across a week close the account. The setup can be identical; only the size differs.
Your edge decides whether you profit. Your size decides whether you survive long enough to find out.
04Build a daily plan and a daily stop
A daily stop is a personal loss amount at which you stop trading for the day, set well inside the firm's daily loss limit. Half the limit is a good default. It protects you from the one trade where slippage, a gap or a fast candle pushes a loss beyond its planned size.
Your daily plan can fit on one card:
- Today's floors: check your dashboard at 09:15 IST for today's daily loss floor and your fixed maximum loss floor.
- Personal stop: the rupee loss at which you shut the screen.
- Maximum trades: three or four is plenty for most intraday traders.
- Setups allowed: only the one or two patterns you have tested.
- Events: note the listed news events your dashboard shows each morning.
Also decide a profit stop. Some traders stop for the day after reaching 1% to 1.5% of the balance. This is not a rule, but it stops a good morning turning into a careless afternoon. Remember that intraday MIS positions auto-close at 15:15 IST, so plan exits before then rather than letting the system close them for you.
05Use the no-time-limit advantage
Greenwick has no time limit on any plan. This is the single most useful feature for passing a funded challenge, yet many traders ignore it and trade as if a clock were running.
With no deadline, you can:
- Skip choppy, directionless days entirely.
- Take a break after a losing streak without penalty.
- Keep risk at 0.25% to 0.5% instead of raising it to finish faster.
- Wait for clean setups around your best hours, often the first ninety minutes.
The only timing rule is the minimum number of trading days: five per phase on 2-Step and 1-Step. A trading day is any day you open or close at least one trade. If you reach the target in three days, simply keep trading small for two more days to meet the minimum. Do not use those days to swing for more.
Treat the challenge as a three-to-six week project, not a weekend sprint. The traders who pass are usually the ones who were willing to be slow.
06Trading NIFTY and BANKNIFTY options inside limits
Index options are the most traded instruments among Indian retail traders, and they are available on Greenwick alongside FINNIFTY, MIDCPNIFTY, SENSEX, BANKEX, stocks and MCX commodities. Options are also where most challenge accounts close, because premiums can move very fast.
Size from the stop, not the lot
Work backwards. Your rupee risk on an option trade equals the stop distance in premium points, multiplied by the current exchange lot size, multiplied by the number of lots. Say your planned stop on one lot works out to ₹1,500. With a ₹5,000 risk budget you can take three lots, risking ₹4,500. If the stop on one lot is ₹3,000, you take one lot. The budget stays fixed; the lot count adjusts.
Respect open P&L
Because limits are measured on equity, an open option position that swings against you counts immediately. A sold option or a large bought position can touch the daily floor in a single sharp candle. Always place a stop-loss order at entry. Lot limits per account size are listed on the rules page, and orders above them are simply rejected with a reason, not treated as a breach. Margin use is capped at 80%.
- Fix rupee risk first, then calculate lots
- Place stop-loss orders the moment you enter
- Prefer liquid strikes near the money
- Close losing trades at the planned level
- Averaging down on losing option buys
- Selling naked options without a defined exit
- Adding lots after a loss to recover faster
- Holding far out-of-the-money strikes hoping for a spike
Expiry day and news windows
Two moments deserve special care: expiry afternoons and scheduled news.
Expiry day. Premiums decay and swing sharply in the last hour. On funded accounts, new option positions opened in the last 30 minutes of expiry day are not counted for payout, though closing is always fine. Build the habit now: finish opening new options before the final half hour on expiry, and spend that window managing or closing what you hold.
News windows. Your dashboard lists major events each morning, such as RBI policy, the Union Budget and index-heavy results. Profit from trades opened within five minutes either side of a listed event is not counted for payout. These are payout rules, not account-closing rules, but news spikes are also exactly when equity can touch a floor. Stepping aside for those minutes is good risk practice at any stage.
A gap or spike can move price past your stop before it fills. On news days, consider half size or no position at all through the event.
07Phase 2 mindset: same trader, smaller target
Phase 2 opens automatically once you pass Phase 1. The target falls to 5%, which is ₹50,000 on ₹10L, while the daily and maximum loss limits stay the same.
The danger in Phase 2 is relief. Traders who just passed feel confident and size up, or feel pressure because they are close to funding and freeze. Neither helps. Keep the exact same process. Many traders actually cut risk per trade to around 0.3% here, because a smaller target needs fewer wins and there is more to lose by being careless. When you do get funded, our guide to profit split and payouts explains how rewards and the consistency rule work.
08Track every trade in a journal
A journal turns vague feelings into evidence. Keep it simple enough that you actually fill it in after every session. Record:
- Date, instrument, strike or contract, and direction
- Planned entry, stop and target, plus rupee risk
- Actual result in rupees and in R (multiples of risk)
- Whether you followed the plan, yes or no
- One line on your state of mind
After twenty trades, review it. You will usually find one setup that earns and one habit that costs. Cut the habit. For more on the mental side, see our guide to trading psychology for prop traders.
09The 14-step prop challenge checklist
- Read the rules for your plan
Know the target, daily loss, maximum loss and minimum days before paying.
- Convert every rule to rupees
Write your floors and targets on a card next to your screen.
- Choose a size that fits your normal trade
Pick the account where your usual lot count sits comfortably.
- Fix risk per trade
0.25% to 0.5% of the starting balance is a sound range.
- Set a personal daily stop
Half the daily loss limit is a sensible default.
- Limit trades per day
Three or four quality trades beat ten impulsive ones.
- Check the dashboard at 09:15 IST
Note today's daily floor and the listed news events.
- Size options from the stop
Stop points times current exchange lot size times lots must fit the budget.
- Place stop-loss orders at entry
Never leave an open position without a defined exit.
- Step aside around listed news
Avoid opening trades five minutes either side of events.
- Finish new option entries early on expiry
Use the last 30 minutes to manage, not open.
- Exit MIS trades before 15:15 IST
Close on your terms rather than at the auto-close.
- Journal every session
Record risk, result, and whether you followed the plan.
- Keep the same process in Phase 2
Same size or smaller; never larger because you feel ahead.
10What to do after a losing day
Losing days are normal. What matters is the next day. A single bad session rarely closes an account; the revenge session after it often does.
- Stop when the personal stop hits
Close the platform. No more trades today, even if a perfect setup appears.
- Write the post-mortem
Was it a planned loss, or a broken rule? Only broken rules need fixing.
- Recalculate your room
Check the distance to your maximum loss floor in rupees. It is usually larger than it feels.
- Return at half size
Trade the next session at half your usual risk until you have one green day.
Since there is no time limit, a slower week costs nothing. If you want to understand the patterns behind failed attempts, read why traders fail prop firm challenges, and build a sizing framework with our risk management guide for funded traders. Greenwick is not a broker or investment adviser; evaluations use simulated capital with live Indian market prices, and trading involves risk.