Becoming a successful funded trader isn’t just about passing a prop firm challenge—it’s about maintaining consistency and managing risk to keep your funded account profitable long-term. The best traders don’t rely on luck; they use proven trading strategies that allow them to stay disciplined and grow their capital.
In this article, we’ll explore the top trading strategies that can help you achieve consistent profits in a funded account while staying within risk management rules.
1. Trend Following Strategy
📌 Best for: Forex, Stocks, Indices, Commodities
📌 Timeframe: 1-hour, 4-hour, Daily
📌 Risk Level: Low to Medium
How It Works:
The trend-following strategy is based on the principle that “the trend is your friend.” Instead of predicting reversals, you trade in the direction of the prevailing market trend.
How to Trade It:
✅ Identify a strong trend using the 50-day or 200-day Moving Average
✅ Look for price action confirmation—higher highs & higher lows (uptrend) or lower highs & lower lows (downtrend)
✅ Use a pullback entry strategy, buying on dips in an uptrend or selling on rallies in a downtrend
✅ Set stop-loss below recent swing lows in an uptrend or above recent swing highs in a downtrend
💡 Pro Tip: Combine with RSI or MACD to confirm trend strength.
2. Breakout Trading Strategy
📌 Best for: Forex, Stocks, Cryptos, Indices
📌 Timeframe: 15-minute, 1-hour, 4-hour
📌 Risk Level: Medium
How It Works:
The breakout strategy focuses on identifying price levels where the market has been consolidating and entering when price breaks out of that range.
How to Trade It:
✅ Identify key support and resistance levels where price has been ranging
✅ Wait for a strong breakout candle closing above resistance (for buys) or below support (for sells)
✅ Enter the trade on a retest of the breakout level
✅ Set stop-loss below the breakout point and target a 1:2 or higher risk-to-reward ratio
💡 Pro Tip: Use higher timeframes (4H or Daily) for more reliable breakouts.
3. Support and Resistance Trading
📌 Best for: Forex, Stocks, Indices, Commodities
📌 Timeframe: Any (higher timeframes are more reliable)
📌 Risk Level: Low
How It Works:
Support and resistance levels act as barriers where price historically reacts. Traders buy at support and sell at resistance.
How to Trade It:
✅ Identify key support (buy zones) and resistance (sell zones) levels
✅ Wait for price action confirmation (e.g., pin bars, engulfing candles) at these levels
✅ Place stop-loss slightly beyond support or resistance levels
✅ Target the next key level as your take-profit
💡 Pro Tip: Strong rejection wicks or doji candles at support/resistance are great entry signals.
4. Scalping Strategy
📌 Best for: Forex, Cryptos, Indices
📌 Timeframe: 1-minute, 5-minute, 15-minute
📌 Risk Level: High
How It Works:
Scalping involves making multiple quick trades within a short period, aiming for small profits while minimizing losses.
How to Trade It:
✅ Use exponential moving averages (EMA) to identify momentum (e.g., 9 EMA & 21 EMA)
✅ Trade during high liquidity sessions (London & New York overlap)
✅ Keep a tight stop-loss (5-10 pips) and aim for 1:1.5 or higher risk-reward
✅ Exit quickly if momentum slows down
💡 Pro Tip: Scalping requires low spreads and fast execution, so choose a high-quality broker or prop firm with low slippage.
5. Swing Trading Strategy
📌 Best for: Forex, Stocks, Indices
📌 Timeframe: 4-hour, Daily, Weekly
📌 Risk Level: Medium
How It Works:
Swing traders capture medium-term price movements over days or weeks, using technical and fundamental analysis to predict trends.
How to Trade It:
✅ Identify major market trends using the 200 EMA
✅ Wait for price to pull back into a key level (e.g., Fibonacci retracement, moving average)
✅ Enter on confirmation signals (bullish/bearish engulfing, pin bars)
✅ Target 2-5x the risk amount while keeping a tight stop-loss
💡 Pro Tip: The best swing trades happen at the start of a new trend—watch for breakouts from long consolidations.
6. News Trading Strategy
📌 Best for: Forex, Indices, Commodities
📌 Timeframe: 5-minute, 15-minute, 1-hour
📌 Risk Level: High
How It Works:
Economic news releases like NFP, CPI, and interest rate decisions create extreme volatility—this strategy aims to capitalize on those movements.
How to Trade It:
✅ Check forex economic calendars to track high-impact news events
✅ Trade the reaction (breakout strategy) instead of guessing the outcome
✅ Enter only after market direction is confirmed
✅ Use wider stop-losses due to increased volatility
💡 Pro Tip: Some prop firms restrict news trading, so always check their rules before attempting this strategy.
Best Trading Strategy for Funded Accounts?
| Strategy | Win Rate Potential | Best for | Risk Level |
|---|---|---|---|
| Trend Following | ✅ High | Forex, Stocks | Low-Medium |
| Breakout Trading | ✅ High | Forex, Indices | Medium |
| Support & Resistance | ✅ High | All Markets | Low |
| Scalping | ✅ High | Forex, Cryptos | High |
| Swing Trading | ✅ High | Stocks, Forex | Medium |
| News Trading | ✅ Medium | Forex, Indices | High |
💡 Best Choice for Funded Traders? Trend Following & Breakout Trading—these strategies work best while minimizing risk and avoiding prop firm violations.
Final Thoughts: Master Your Strategy, Stay Funded
The key to consistent profits in a funded account is sticking to a proven strategy and following strict risk management.
✅ Choose a strategy that matches your style (trend following, breakout, swing, etc.)
✅ Use proper risk management (max 1-2% risk per trade)
✅ Stick to high-probability trades—quality over quantity
✅ Avoid emotional trading—follow your trading plan
By mastering these strategies, you’ll not only keep your funded account but also scale up and maximize your profit potential.
