Prop firm trading has opened new doors for traders who want to access significant capital without risking their own money. To secure a funded account, traders must typically complete a two-step evaluation process, proving their consistency, risk management, and profitability. MetaTrader 5 (MT5) is one of the most powerful platforms used to execute trades during this process, thanks to its flexibility, advanced tools, and real-time performance tracking.
This article explores how traders can use MT5 effectively to pass a prop firm’s two-step evaluation and secure a funded trading account.
What Is Prop Firm Trading?
Proprietary trading firms (or "prop firms") provide traders with access to their capital in exchange for a profit split. Instead of trading with personal funds, traders trade on the firm’s account and must follow specific rules. These rules are usually tested in a two-step evaluation before being awarded a funded account.
The Two-Step Evaluation Process
The evaluation includes:
- Step 1: Profit Target Challenge – Reach a set profit target (e.g., 8%–10%) within a limited time while staying within risk limits.
- Step 2: Verification Phase – Prove consistency with a lower profit target (e.g., 5%) and the same or tighter drawdown rules.
The goal of this process is to test whether a trader can trade profitably without taking excessive risks.
Why MetaTrader 5 Is Ideal for Prop Firm Evaluations
MetaTrader 5 is widely supported by leading prop firms. Here’s why it’s the preferred platform:
- Fast Execution – Crucial for scalping or short-term trades under tight rules.
- Advanced Charting – Multiple timeframes, custom indicators, and drawing tools help identify and plan quality trades.
- Risk Management Tools – Integrated order types and stop-loss settings help traders stay within daily or overall drawdown limits.
- Trade Analytics – Real-time access to trade history, balance, and performance metrics supports evaluation progress tracking.
Step-by-Step Guide to Using MT5 for a Two-Step Prop Firm Evaluation
1. Set Up Your MT5 Platform
To get started with MT5:
- Download MT5 from your prop firm’s portal or MetaQuotes’ official site.
- Log in with the demo credentials provided for the evaluation.
- Add your preferred instruments (e.g., forex pairs, indices, or commodities) to the Market Watch.
- Create and save chart templates for your strategy.
2. Align Your Strategy with Evaluation Rules
Before trading, understand the firm’s rules:
- Daily drawdown limits (e.g., 5%)
- Maximum overall drawdown (e.g., 10%)
- Minimum trading days (e.g., 10 days)
- Forbidden behaviors (e.g., holding trades over the weekend or during high-impact news)
Using MT5, you can:
- Set alerts near drawdown limits
- Use fixed lot sizes or EAs to maintain consistency
- Log and monitor your trading sessions
3. Focus on High-Probability Trades
In both steps of the evaluation, quality matters more than quantity. Use MT5 features to enhance your decision-making:
- Technical Indicators: Use RSI, MACD, moving averages, and volume tools for precision entries.
- Multiple Timeframes: Start with the 1-hour or 4-hour chart for context, then move to 15-minute charts for entry.
- Pending Orders: Use Buy/Sell Limit or Stop orders to pre-plan trades and avoid impulse entries.
Avoid overtrading—every mistake can cost you the evaluation.
4. Manage Risk Precisely with MT5
To pass the evaluation, managing risk is as important as making profits. Use MT5’s built-in tools to maintain discipline:
- Set SL and TP with Every Trade: Hard stops prevent emotions from taking over.
- Lot Size Calculators: Manually or with plug-ins, always calculate position size based on your risk per trade (usually 1% or less).
- Trailing Stops: Protect profits during trends.
Even profitable traders fail evaluations due to violations, not losses. Let MT5’s trade control features help you stay within the rules.
5. Track Your Progress with Detailed Reports
MT5 allows traders to export detailed reports of trade performance, including:
- Win rate
- Risk-to-reward ratios
- Profit factor
- Average trade duration
You can use these stats to refine your strategy between Step 1 and Step 2 or to identify areas of weakness. Keeping a journal alongside your MT5 logs is highly recommended during the evaluation process.
Tips to Pass the Two-Step Evaluation Using MT5
- Trade only the best setups — patience is key.
- Stick to a fixed lot size — consistency is critical in Step 2.
- Respect the rules strictly — even one violation can void your evaluation.
- Avoid news hours unless allowed — volatility can increase your risk of hitting drawdown limits.
- Use MT5 mobile to monitor trades — stay updated even when away from your desk.
Conclusion
MetaTrader 5 is an essential tool for traders aiming to pass a prop firm’s two-step evaluation. Its combination of precision trading tools, real-time tracking, and multi-asset access gives traders the edge they need to stay disciplined and strategic under pressure.
Whether you're preparing for Step 1 or already into Step 2, MT5 can help you maintain structure, follow your plan, and meet all the evaluation objectives. Master the platform, align it with your trading rules, and you’ll be one step closer to managing a fully funded account.