Failing a challenge costs a fee and a few weeks. Buying another one the same day, to win it back, is how one failed challenge becomes five. The useful thing to do with a failure is to learn exactly why it happened.

Step 1: name the rule

Look at the firm’s breach report. Which limit was hit, daily loss or maximum loss, and on which day? Was it a closed loss or an open trade’s equity? Was it near a news release or the daily reset?

Step 2: find the trade behind it

Step 2: find the trade behind it. One very large loss: Size too big or no stop: Cap risk at 0.5–1%; always place the stop at entry; Several losses in one day: No daily stop of your own: Stop at half the firm’s daily limit; A loss right after a loss: Revenge trading: Mandatory break after a losing trade; Breach while still in profit: Trailing drawdown or equity measure misunderstood: Track your floor before each session; Losses around news: Holding through releases: Flatten or
Step 2: find the trade behind it: the figures from this section at a glance.
What you findWhat it usually meansThe fix
One very large lossSize too big or no stopCap risk at 0.5–1%; always place the stop at entry
Several losses in one dayNo daily stop of your ownStop at half the firm’s daily limit
A loss right after a lossRevenge tradingMandatory break after a losing trade
Breach while still in profitTrailing drawdown or equity measure misunderstoodTrack your floor before each session
Losses around newsHolding through releasesFlatten or cut size before high-impact events
Slow steady lossesThe method itself is not workingBack to demo; test before paying again

Step 3: prove the fix on demo

Trade the corrected plan on a free demo account under the same limits for two to four weeks. If it would have passed, you have a reason to pay again. If not, you have saved a fee.

Step 4: decide whether to retry

  • Set a fee budget in advance, such as two attempts, and stop when it is spent.
  • Consider a smaller account size: the rules are the same in percentage terms and the fee is lower.
  • Prefer a plan whose fee is refunded with the first payout, such as FTMO’s 2-Step; its 1-Step and Instant fees are not refunded.
  • Look at whether a one-step or two-step format suits your trading better; our guide to one-step vs two-step compares them.

Discounted “reset” offers arrive right after a failure for a reason. Decide with a clear head, after the review, not in the hour after the breach.

A failed challenge with a clear lesson is cheaper than a passed one with none. Write the lesson down before you buy anything.
FX Recap viewEditorial team

Frequently asked

What should I do after failing a prop firm challenge?

Find which rule you breached and the trade that caused it, fix the habit behind it, and test the fix on a free demo account under the same limits before paying for another challenge.

Should I buy a reset after failing?

Not immediately. Review the failure first. A reset only helps if the reason you failed has been fixed and tested.

How many prop challenges should I try?

Set a fee budget in advance, such as two attempts. If you fail both, step back to demo trading rather than buying more.

Is it better to retry with a smaller account?

Often. The rules are the same in percentage terms, the fee is lower, and the lesson costs less to learn.