Prop firm rules explained: news, consistency, payouts and closing time
Every firm has its own rulebook, but the same handful of rules appear everywhere. Know them before you buy, because most failed accounts break a rule rather than a strategy.
Daily loss limit
Some firms close trading for the day after a set loss, others have none. Even without one, setting your own daily stop is the single best protection you have.
Consistency rule
A common version says no single day may be more than a fixed share of your total profit (for example 30–50%). One huge day can therefore delay a payout until you add more smaller winning days.
News trading rules
Some firms forbid holding positions a few minutes before and after tier-1 releases such as CPI, NFP and FOMC; others allow it. Even where it is allowed, spreads widen and stops can be filled far away from where you set them.
MFT reads the US economic calendar and can skip new entries and flatten open positions before red (and optionally orange) news on your account.
Flat before the close
CME equity and metals futures pause daily from 17:00 to 18:00 ET. Most firms require you to be flat a little earlier, commonly by 16:10 ET. MFT stops new entries in the last hour and flattens automated positions at 16:10 ET.
Contract limits and scaling plans
You typically start with a capped number of contracts, and some firms unlock more as your balance grows. One mini equals ten micros when firms count size.
Payout rules and buffers
- Minimum number of trading or winning days before the first payout.
- A safety buffer you must keep above the drawdown limit.
- Payout caps per request in the early stage.
- Profit split, often 80–90% or higher to the trader.
Copy trading and automation
Most futures firms allow automation and copying between your own accounts, but not between different people. Always read the firm's current terms — MFT never holds your broker credentials; orders go through your own TradersPost connection.
Common questions
Can you trade news on a prop firm?
It depends on the firm and account stage. Many restrict tier-1 news on funded accounts. Check the current rules before trading CPI, NFP or FOMC.
Are trading bots allowed on prop firms?
Most futures prop firms allow automated execution of your own strategy, but rules differ. Confirm with your firm before connecting automation.
Let MFT follow the rules for you
Five rule-based models on NQ, ES and Gold, exact levels, and optional automation to your prop or live account with news, close and profit-target protection.
Educational content only, not financial advice. Prop firm rules change — always confirm on the firm's site.