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How to trade volatile pairs with prop firm?

Proprietary companies are gaining more limelight in the current era as more and more traders flock to find suitable capital or risk-free methods to trade. The prop firms are ready to offer millions of dollars in trading capital provided a trader trades profitably. A fixed set of rules are implemented to ensure that the relationship benefits both parties. These restrictions generally include a cap on the drawdown, weekend trading, and trading styles.

With the limitation in mind, the incoming traders must devise a suitable plan to ace the challenge. Choosing the proper instruments can help you in your journey to pass the challenge and verification. Each asset has its own set of volatility, liquidity, and spread. Let us go through each of them in detail and see how you can take out the utmost benefit as a prop trader.

Using currencies to trade on prop firms

You may think that major currency pairs are the only sound way to trade with most prop firms. While that is true, there is also a growing interest in exotics and minors amongst the general community.

The benefit of major currency pairs such as EURUSD can be observed while trading larger lot sizes. For those who love both liquidity and volatility, GBPUSD can provide good opportunities. Due to better volume scalping and day trading strategies would work best when trading majors.

EURUSD chart

A trader analyzing EURUSD decided to go long at the bullish candle. They buy at random intervals and hold until the market returns to their desired area.

Minor and exotic currency pairs are also a great option for traders looking for increased volatility. GBPAUD is a beast when it comes to market movements.

The amount of available margin can vary from one instrument to another. As most prop firms offer leverage of 1:10 or more, it is easy to use averaging strategies. There may be restrictions on martingale in some cases.

Keep in mind that most prop firms do not allow arbitrage trading. You may use currency correlation techniques, however.

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Using metals to trade on prop firms

Specific techniques and EAs are built around gold and silver to pass the prop firm challenges. As XAUUSD is extremely volatile, it can provide immediate gains to get through the first phase. A common strategy involves risking more as you win each trade. For example, after making 4% on the first two trades with a risk: reward of 1:2, a trader would then risk their entire gains, i.e., 4%. A positive outcome would result in an overall 8% gain which is the minimum threshold set by many proprietary companies to pass the challenge.

Moving average cross-overs coupled with several other indicators, such as RSI, MACD, etc., can be implemented to provide more confluence on your trades. You may want to keep your eyes stuck on the screen or keep your stop loss at a fair distance due to the extreme movements of gold.

Gold chart

A trader spots a negative divergence pattern on gold. As the metal pushes higher, the RSI indicator paints a lower high and low, signaling an upcoming bearish move. The market takes some time before giving in to the bears.

Using cryptocurrencies to trade on prop firms

The crypto market is full of opportunities for aspiring prop traders. Before trading digital instruments, follow the social accounts of billionaires such as Elon Musk. A single tweet from them can send the market flying in a bullish or bearish direction.

DCA and MA cross-over strategies are also popular in the crypto sphere. Price action traders will plot support/resistances and supply/demand zones to determine the current market’s range. Limit orders may be placed along the top and bottom of these ranges to sell and buy automatically.

BTCUSD chart

BTCUSD  has been in a range since the mid of June 2022. This is a perfect opportunity for those who use grid or range-based techniques.

Grid trading can result in a considerable drawdown if the market moves in one direction with momentum. Increasing your pip step might seem like a good option; however, it will only add to the injury as the instrument will require more time to turn back. That is, if it does. This will not be suitable in the challenge phase, which must be completed in 20 trading days.

Backtesting your plan

Before using any strategy on a live account, backtest it on a demo account. Specific backtesting software can be installed within the MT 4 platform to stress test your game plan.

While trading on any prop firm, keep a detailed note of your trades in a specific journal. Mark your mistakes and remove them in the future to scale your capital up to a million. Avoid trading with your emotions, such as greed, fear, and anger.

Currencies, metals, and digital instruments can all work well with scalping, day, and swing trading. As mentioned, prop companies may restrict trading during news or holding on weekends. The rules can be specifically strict during the challenge phase.


Before opening an account with any prop firm, look at the available currencies, metals, and crypto to ensure the availability of your preferred trading assets.

Ask for a demo of their programs. For example, RivaFx offers a demo account for their 2-step evaluation models – just get in touch with their support and they will provide an account for you (https://rivafx.com)

Using specific trading instruments boils down to personal preferences and your trading style. Find out which assets resonate with your personality and provide you with the best win rate and risk: reward ratio. Some strategies may work best during certain market conditions while failing in others.