Seven mistakes that end prop firm accounts
These seven errors explain most account closures. All are preventable.
1. Oversizing
Large trades to reach target fast: the top cause of failure. Keep risk small and constant.
2. Misreading drawdown
Treating trailing as static, or ignoring floating losses. See the drawdown guide.
3. Restricted news trades
Opening or closing inside a banned window can void profit or breach the account.
4. Copying or cross-hedging
Copying others or hedging across accounts/firms is prohibited almost universally.
5. Reset-time errors
Server-time resets can put losses either side of local midnight into one trading day.
6. Untested EAs
Commercial bots often violate hold-time or HFT rules. Get written approval first.
7. Revenge trading
After a loss, stop. Need does not improve the next trade.
FAQ
Refunds for accidental breaches?
Almost never; some firms offer discounted retries.
Warning before closure?
No; hard breaches typically close accounts automatically.