How to Pass the The5%ers $100,000 Challenge
Math-backed position sizing, drawdown math, and a week-by-week plan. Updated 2026-03-21.
To pass the The5%ers $100,000 challenge, risk 1% per trade ($1,000) and target 2:1 reward-to-risk setups. You need 3 winning trades of $2,000 each to hit the $6,000 profit target. Your max drawdown is $4,000 (static (floor never moves)), giving you 4 consecutive losers of room. Daily loss limit: $4,000. Minimum 3 trading days required.
Account Size
$100,000
Profit Target
$6,000
Max Drawdown
$4,000
Daily Loss Limit
$4,000
1% Risk Per Trade
$1,000
Breach Level
$96,000
| Risk Per Trade | $ Amount | Consecutive Losers (Drawdown) | Losers/Day (Daily Limit) |
|---|---|---|---|
| 0.5% | $500 | 8 trades | 8 trades |
| 1% (recommended) | $1,000 | 4 trades | 4 trades |
| 1.5% | $1,500 | 2 trades | 2 trades |
| 2% | $2,000 | 2 trades | 2 trades |
At 1% risk, you have 4 trades of room. At 2% risk, that drops to 2 trades. The difference between passing and failing is often just position sizing.
Your drawdown floor is fixed at $96,000 from day one. If you grow your account to $105,000, the floor stays at $96,000. Your profits create extra breathing room -- every dollar you make is a dollar further from the floor.
Example scenario:
Day 1: You open at $100,000. Floor = $96,000.
Day 5: Account grows to $103,000. Floor = still $96,000.
Day 8: Bad day, account drops to $101,000. You are still safe -- $5,000 above the floor.
Your effective room is now $7,000 from your peak -- the $3,000 profit acts as extra buffer.
The5%ers measures the daily loss limit based on balance. This means only closed trade P&L counts, though some firms also factor in floating losses.
At 1% risk per trade ($1,000), you can take 4 losing trades per day before hitting the $4,000 daily cap.
Pro tip: Set your own daily limit at $3,000 (75% of the actual limit). This gives you a buffer for spread costs and slippage.
The recommended risk per trade is 1% of account size = $1,000.
How to calculate lot size (forex example):
- Determine your stop loss distance in pips (e.g., 20 pips)
- Calculate pip value: $1,000 / 20 pips = $50/pip
- On EUR/USD (standard lot = $10/pip): $50 / $10 = 5.00 lots
- On EUR/USD (mini lot = $1/pip): $50 / $1 = 50.0 mini lots
Never calculate lot size first and stop loss second. Always start with the chart, find the logical stop loss, then calculate how many lots fit within your $1,000 budget.
- 1.Revenge trading after a loss -- taking a second or third trade to "make it back" without a valid setup
- 2.Risking more than 1% per trade ($1,000) -- over-sizing is the #1 reason traders fail prop challenges
- 3.Trading without a stop loss -- hoping a trade will come back is how accounts get blown in a single session
- 4.Ignoring the daily loss limit ($4,000) -- many traders track drawdown but forget the daily cap
Minimum trading days: 3 days. You cannot pass the Phase 1 faster than this, even if you hit the profit target on day 1.
This is a 2-step evaluation. After passing Phase 1, you move to Phase 2 with a lower profit target (5%). Budget 4-8 weeks total for both phases.
94% of prop firm traders fail. Most fail because they rush, over-leverage, or trade emotionally after a loss. The traders who pass treat it like a business, not a sprint.
Week 1: Build the Foundation
- Risk $500 per trade (0.5%) -- half your normal risk
- Trade only your best A+ setups. 1-2 trades per day maximum
- Goal: establish consistency and prove your edge, not hit the target
- Target P&L for the week: $1,200 (20% of profit target)
- If you lose 2 trades in a row, stop trading for the day
- You need 3 minimum trading days -- no reason to rush
Week 2: Scale Up Carefully
- If Week 1 was profitable, increase to $1,000 per trade (1%)
- If Week 1 was negative, stay at 0.5% and focus on execution quality
- Target P&L for the week: $2,400 (40% of profit target)
- Review every trade -- are you following your plan or improvising?
- Set a daily loss limit for yourself at $2,000 (2 losers = done for the day)
Weeks 3-4: Close It Out
- Stay at 1% risk. Do not increase to "finish faster"
- Remaining target: $2,400 (40%). At $2,000 per winning trade (2R), that is 2 winning trades
- If you are close to the target, do not force trades. Let them come to you
- Monitor your drawdown buffer: always know how far you are from $96,000