How to Pass the TopStep $150,000 Challenge
Math-backed position sizing, drawdown math, and a week-by-week plan. Updated 2026-03-21.
To pass the TopStep $150,000 challenge, risk 1% per trade ($1,500) and target 2:1 reward-to-risk setups. You need 3 winning trades of $3,000 each to hit the $9,000 profit target. Your max drawdown is $4,500 (trailing eod (floor moves up at end of day)), giving you 3 consecutive losers of room. Daily loss limit: $3,000. No minimum trading days.
Account Size
$150,000
Profit Target
$9,000
Max Drawdown
$4,500
Daily Loss Limit
$3,000
1% Risk Per Trade
$1,500
Breach Level
$145,500
| Risk Per Trade | $ Amount | Consecutive Losers (Drawdown) | Losers/Day (Daily Limit) |
|---|---|---|---|
| 0.5% | $750 | 6 trades | 4 trades |
| 1% (recommended) | $1,500 | 3 trades | 2 trades |
| 1.5% | $2,250 | 2 trades | 1 trades |
| 2% | $3,000 | 1 trades | 1 trades |
At 1% risk, you have 3 trades of room. At 2% risk, that drops to 1 trades. The difference between passing and failing is often just position sizing.
Your drawdown floor starts at $145,500 but moves up at the end of each trading day. If you close the day at $152,000, your new floor becomes $147,500. The floor never moves down. This means early profits do not give you extra room -- the safety net stays the same size but follows you up.
Example scenario:
Day 1: You open at $150,000. Floor = $145,500.
Day 3: You close at $152,000. Floor moves to $147,500.
Day 4: You close at $151,500 (gave back $500). Floor stays at $147,500 -- it only moves up.
Your remaining room is $4,000 -- tighter than when you started.
TopStep 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 ($1,500), you can take 2 losing trades per day before hitting the $3,000 daily cap.
Pro tip: Set your own daily limit at $2,250 (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 = $1,500.
How to calculate lot size (forex example):
- Determine your stop loss distance in pips (e.g., 20 pips)
- Calculate pip value: $1,500 / 20 pips = $75/pip
- On EUR/USD (standard lot = $10/pip): $75 / $10 = 7.50 lots
- On EUR/USD (mini lot = $1/pip): $75 / $1 = 75.0 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 $1,500 budget.
- 1.Not understanding that the drawdown floor moves up at end of day -- early profits shrink your total room, not grow it
- 2.Violating the consistency rule: No single day > 50% of total profit. One big win can invalidate an otherwise passing account
- 3.Forgetting to close positions before market close -- overnight holding is not allowed and results in automatic violation
- 4.Revenge trading after a loss -- taking a second or third trade to "make it back" without a valid setup
- 5.Risking more than 1% per trade ($1,500) -- over-sizing is the #1 reason traders fail prop challenges
- 6.Trading without a stop loss -- hoping a trade will come back is how accounts get blown in a single session
- 7.Ignoring the daily loss limit ($3,000) -- many traders track drawdown but forget the daily cap
No minimum trading days. You could theoretically pass in one session, but this usually means over-leveraging. Take your time.
This is a 1-step evaluation. Pass the evaluation and go straight to funded. Budget 2-4 weeks.
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 $750 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: $1,800 (20% of profit target)
- If you lose 2 trades in a row, stop trading for the day
Week 2: Scale Up Carefully
- If Week 1 was profitable, increase to $1,500 per trade (1%)
- If Week 1 was negative, stay at 0.5% and focus on execution quality
- Target P&L for the week: $3,600 (40% of profit target)
- Review every trade -- are you following your plan or improvising?
- Set a daily loss limit for yourself at $3,000 (2 losers = done for the day)
Weeks 3-4: Close It Out
- Stay at 1% risk. Do not increase to "finish faster"
- Remaining target: $3,600 (40%). At $3,000 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 $145,500