are prop firm challenges just a fee farm

[wildnorth]

bought 3 challenges now, failed all 3 on the daily drawdown rule even though i was up overall. starting to feel like the challenge IS the product and they dont actually want you to pass. am i just bad or is this designed

[shadowpilot]

bit of both honestly. you failing the dd rule is on you, but the rules ARE tuned so most people fail. think about it, if 90% fail the challenge then the challenge fees ARE the business, the funded payouts are a marketing cost. the good firms do pay, but the model only works because most never get there

[christianm]

eh i passed 2 and got paid both times. its not a scam its just hard and the daily dd rule punishes overtrading. if you blew 3 on daily dd while 'up overall' you were probably swinging too big intraday. thats exactly what the rule filters out

[cameronv]

prop firms: pay us 500 to gamble with fake money and we keep the fee whether you win or lose. genius really

[visionaire]

failed 5 challenges before i passed one spent more on fees than i made on the first payout lol. now im breakeven on the whole adventure. mixed feelings

[Justin]

wait so the funded money is real? or is it also simulated and they just pay you from fees

[derekwhite]

depends on the firm. some route funded traders to a real account, plenty keep you on simulated/demo even when 'funded' and pay your 'profit' out of the fee pool. that second model is fine as long as they pay, but it means your 'trading' isnt hitting a real market, which should tell you what the actual product is

[northlight]

stopped buying challenges, not for me