MT5 · FREE LEARNING GUIDES

Understanding prop firm rules in MetaTrader 5

A practical guide to checking the rules before your next trade. There is no single formula that applies to every prop firm: always consult your firm's current rulebook.

1. Daily loss: the calculation base matters

Some evaluations base the daily allowance on initial balance; others use the day's opening balance or equity reference. The reset can also occur at a specific server-time hour. A plausible-looking result can still be wrong if you use the wrong reference or reset time.

2. Maximum loss: static versus trailing

With a static model, initial balance 10,000 and a 10% maximum loss allowance, the equity floor is 9,000. Under a simple trailing model with a recorded equity peak of 10,200 and 10% of initial balance as the allowance, the floor rises to 9,200. Your firm's definition may differ, including when its trailing threshold stops moving.

3. Consistency: concentration of closed profits

One consistency-rule model limits the best closed-profit day to 30% of cumulative closed net profit. If the best day made 600 and total closed profit is 1,500, the share is 40%. Reaching 30% would require at least 600/0.30 − 1,500 = 500 more closed profit, assuming no future day exceeds the current best day.

This is a mathematical lower bound, not a guaranteed outcome. A new best day changes the numerator. Firms can also define trading days, fees, payouts and rule compliance differently.

4. Stops and execution restrictions matter

A broker's stop level, freeze level, spread and terminal availability can prevent a stop-loss or take-profit adjustment at a given instant. A browser calculator cannot read live broker rules or guarantee a fill or a future return.

5. A safe verification workflow

  1. Write down the firm's actual daily reference, reset hour and maximum-drawdown formula.
  2. Run the free calculator with a hypothetical scenario or your figures, without uploading them anywhere.
  3. Install the free RMT Prop Rules Monitor from MQL5 Market and check its panel on an MT5 demo account.
  4. Compare the panel to the firm's latest rules and your own account history; this monitor informs, but does not block trades.

Frequently asked questions

Does this guarantee passing an evaluation?

No. The free monitor is read-only; it never opens or blocks trades. Each firm's rules can change.

Do the calculators access my trading account?

No. The calculation happens in your browser, without a login or MetaTrader connection.

Educational content, not investment advice. Check current firm and broker rules before relying on calculations.