Many traders discover an uncomfortable truth: an algorithm that makes money is not automatically an algorithm that can pass a prop firm evaluation. That happens because prop firm tests are not ordinary trading accounts. Generating positive expectancy is only part of the assignment.Passing is rarely
Algorithmic Trading for Prop Firm Tests: How to Build a System That Survives the Rules
Imagine launching a strategy with a strong historical equity curve, only to lose the evaluation because one volatile session crosses the firm’s daily drawdown limit. The explanation is straightforward: a proprietary trading evaluation is a rule-constrained risk test, not merely a search for profit.