1. Verify Firm Allows EAs

Before deploying automated strategies, verify the prop firm allows Expert Advisors (EAs) or automated trading. Most firms do, but some have restrictions or don't support automation. Always check the firm's policies before purchasing an evaluation.

Check the firm's website, terms of service, and trading rules for EA policies. Some firms explicitly state they allow EAs, while others may have restrictions or require approval for certain types of automated strategies.

2. Understand Minimum Hold Time Requirements

Many prop firms have minimum hold time requirements (e.g., trades must be held for at least 1-2 minutes). This prevents certain types of scalping and ensures trades aren't closed too quickly. Your automated strategy must comply with these requirements.

If your EA closes trades too quickly, it may violate minimum hold time rules and result in evaluation failure. Ensure your automated strategy includes hold time logic that complies with the firm's requirements.

3. Check Trade Frequency Restrictions

Some prop firms have restrictions on trade frequency, limiting how many trades you can take per day or per hour. These restrictions prevent overtrading and ensure traders aren't using strategies that take too many trades.

If your automated strategy takes many trades, ensure it complies with any trade frequency restrictions. Some firms allow unlimited trades, while others have limits that may affect high-frequency algorithmic strategies.

4. Ensure Strategy Complies with Trading Rules

Your automated strategy must comply with all trading rules including profit targets, drawdown limits, minimum trading days, consistency rules (if any), and any other restrictions. Violating rules, even accidentally, can result in evaluation failure.

Program your EA to monitor and comply with all rules. This includes tracking drawdown, ensuring trades meet minimum hold times, staying within daily loss limits, and meeting any other requirements specific to the firm.

5. Test Strategy Thoroughly

Before using your automated strategy in an evaluation, test it thoroughly using backtesting, forward testing, and demo accounts. This helps identify potential issues, ensures the strategy is viable, and verifies it complies with all rules.

Use the platform's backtesting capabilities (MT4 Strategy Tester, MT5 Strategy Tester, etc.) to test your strategy on historical data. Then forward test on demo accounts to ensure it works in live market conditions before risking evaluation fees.

1. Start with Proven Strategies

Don't deploy untested or experimental strategies in evaluations. Start with proven EAs that have a track record of profitability. Test thoroughly before risking evaluation fees, and only use strategies you understand and trust.

2. Monitor Closely

Even automated strategies require monitoring. Check your EA regularly to ensure it's functioning correctly, complying with rules, and performing as expected. Automated doesn't mean "set and forget"—active monitoring is essential.

3. Implement Risk Management

Ensure your EA includes proper risk management including stop losses, position sizing, drawdown protection, and maximum daily loss limits. Automated strategies must manage risk effectively to pass evaluations and protect funded accounts.

4. Test in Different Market Conditions

Test your strategy in various market conditions including trending markets, ranging markets, high volatility, and low volatility. A strategy that works in one condition may fail in another, so comprehensive testing is essential.

5. Understand Your Strategy

Don't use EAs you don't understand. Know how your strategy works, what market conditions it's designed for, and what its limitations are. Understanding your strategy helps you make informed decisions and troubleshoot issues.

Can I do true HFT with prop firms?

No, true HFT is not possible with retail prop firms. High-frequency trading requires institutional infrastructure, co-located servers, direct market access, and millisecond execution capabilities that retail prop firms don't provide. However, algorithmic trading using EAs is widely supported by prop firms.

What's the difference between HFT and algorithmic trading?

True HFT involves millisecond execution, co-located servers, and requires institutional capital and infrastructure. Algorithmic trading uses automated strategies (EAs) that can execute trades based on programmed rules but typically operates on standard retail infrastructure. Most prop firms allow algorithmic trading but not true HFT.

Which prop firms allow automated trading?

Most major prop firms allow automated trading including FTMO, The5ers, Apex Trader Funding, FundedNext, and many others. However, you must verify the firm allows EAs, ensure your strategy complies with all trading rules, and pass the evaluation using the automated strategy.

What are the requirements for algorithmic trading with prop firms?

Requirements include: checking if the firm allows Expert Advisors (EAs), verifying minimum hold time requirements, understanding any restrictions on trade frequency, ensuring your strategy complies with trading rules, and thoroughly testing your strategy before using it in evaluations.

Can I use scalping EAs with prop firms?

Some prop firms allow scalping EAs, but you must ensure they comply with minimum hold time requirements and trade frequency restrictions. Scalping EAs that close trades too quickly may violate rules, so verify the firm's policies before deploying scalping strategies.

Do I need to monitor automated strategies?

Yes, even automated strategies require monitoring. Check your EA regularly to ensure it's functioning correctly, complying with rules, and performing as expected. Automated doesn't mean "set and forget"—active monitoring helps identify issues early and ensures compliance with all rules.