Guides/How to Pass The5%ers $20,000

How to Pass the The5%ers $20,000 Challenge

Math-backed position sizing, drawdown math, and a week-by-week plan. Updated 2026-03-21.

To pass the The5%ers $20,000 challenge, risk 1% per trade ($200) and target 2:1 reward-to-risk setups. You need 3 winning trades of $400 each to hit the $1,200 profit target. Your max drawdown is $800 (static (floor never moves)), giving you 4 consecutive losers of room. Daily loss limit: $800. Minimum 3 trading days required.

Who This Plan Fits Best
This guide is best for traders who want a slower, process-driven path and can let static drawdown do its job instead of forcing fast gains.
Where This Guide Can Fail
This plan will not save you if you ignore the live rulebook, oversize after early wins, or treat the math as permission to take every setup. The guide assumes disciplined execution, not forced trading.
The Numbers at a Glance

Account Size

$20,000

Profit Target

$1,200

Max Drawdown

$800

Daily Loss Limit

$800

1% Risk Per Trade

$200

Breach Level

$19,200

How Many Losing Trades Before You Blow
Risk Per Trade$ AmountConsecutive Losers (Drawdown)Losers/Day (Daily Limit)
0.5%$1008 trades8 trades
1% (recommended)$2004 trades4 trades
1.5%$3002 trades2 trades
2%$4002 trades2 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.

How The5%ers's Static Drawdown Works
Static (floor never moves)

Your drawdown floor is fixed at $19,200 from day one. If you grow your account to $25,000, the floor stays at $19,200. Your profits create extra breathing room -- every dollar you make is a dollar further from the floor.

Example scenario:

Day 1: You open at $20,000. Floor = $19,200.

Day 5: Account grows to $23,000. Floor = still $19,200.

Day 8: Bad day, account drops to $21,000. You are still safe -- $1,800 above the floor.

Your effective room is now $3,800 from your peak -- the $3,000 profit acts as extra buffer.

Daily Loss Limit: $800

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 ($200), you can take 4 losing trades per day before hitting the $800 daily cap.

Pro tip: Set your own daily limit at $600 (75% of the actual limit). This gives you a buffer for spread costs and slippage.

Position Sizing for The5%ers $20,000

The recommended risk per trade is 1% of account size = $200.

How to calculate lot size (forex example):

  1. Determine your stop loss distance in pips (e.g., 20 pips)
  2. Calculate pip value: $200 / 20 pips = $10/pip
  3. On EUR/USD (standard lot = $10/pip): $10 / $10 = 1.00 lots
  4. On EUR/USD (mini lot = $1/pip): $10 / $1 = 10.0 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 $200 budget.

Common Mistakes on The5%ers
  • 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 ($200) -- 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 ($800) -- many traders track drawdown but forget the daily cap
Timeline Expectations

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.

Step-by-Step Plan: Weeks 1-2

Week 1: Build the Foundation

  • Risk $100 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: $240 (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 $200 per trade (1%)
  • If Week 1 was negative, stay at 0.5% and focus on execution quality
  • Target P&L for the week: $480 (40% of profit target)
  • Review every trade -- are you following your plan or improvising?
  • Set a daily loss limit for yourself at $400 (2 losers = done for the day)

Weeks 3-4: Close It Out

  • Stay at 1% risk. Do not increase to "finish faster"
  • Remaining target: $480 (40%). At $400 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 $19,200
Related Resources

Frequently Asked Questions

How hard is it to pass The5%ers $20,000?

Most traders find the The5%ers $20,000 challenge moderately difficult. The profit target is $1,200 with $800 max drawdown, giving a target-to-drawdown ratio of 1.5:1. At 1% risk per trade with 2:1 reward-to-risk, you need about 3 winning trades to pass. Industry-wide, roughly 5-10% of traders pass prop firm challenges.

What is the pass rate for The5%ers?

The5%ers does not publish official pass rates. Industry estimates suggest 5-10% of traders pass prop firm evaluations. The main reasons for failure are over-leveraging, hitting the daily loss limit, and revenge trading after losses. Using 1% risk per trade and following a structured plan significantly improves your odds.

How long does it take to pass The5%ers $20,000?

The5%ers requires a minimum of 3 trading days. Most traders who pass do so in 2-4 weeks. Rushing the evaluation by over-leveraging is the most common cause of failure.

What is the best strategy to pass The5%ers?

Risk 1% per trade ($200) and target 2:1 reward-to-risk setups. Trade only A+ setups, limit yourself to 1-2 trades per day, and stop trading after 2 consecutive losses. The5%ers's static drawdown gives you extra cushion as you profit, so build equity gradually.

Is the The5%ers $20,000 challenge worth it?

The The5%ers $20,000 challenge costs $95. If you pass, you get a $20,000 funded account with 50%-100% profit split. At 5% monthly returns, that is $500-$1,000 per month. The fee is typically refunded with your first payout.

Can I use a bot or EA to pass The5%ers?

Yes, The5%ers allows expert advisors and automated trading bots. Many traders use EAs for consistent execution. Copy trading is not allowed.

Want AI to audit your trades against The5%ers's rules?

Vigil checks every trade against your firm's drawdown, daily loss, and position sizing rules. Know if you're on track to pass -- or about to blow.

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