How to Pass Funding Pips Challenge: Step-by-Step Guide (2026)

Funding Pips Challenge Overview

Funding Pips, operated by Ankh Prop – FZCO (Dubai-based, founded 2022), offers proprietary trading challenges designed to identify skilled traders and provide them with funded accounts. The challenge is a structured evaluation period where you trade with simulated capital to prove consistent profitability before gaining access to real funded capital.

The program offers multiple entry points:

• 2-Step Pro $5K: $29/month – Two-phase evaluation with lower initial cost
• 2-Step Standard $5K: $36/month – Standard two-phase program
• 2-Step Standard $50K: $289/month – Higher account size, same evaluation structure
• 1-Step $5K: $59/month – Single evaluation phase, faster path to funding
• Zero (Instant Funding) $100K: $555/month – Skip evaluation entirely, receive 95% profit split immediately

How it works: You select your challenge tier, pay the entry fee, and receive a paper trading account with the specified capital ($5K, $50K, or $100K depending on tier). You then trade according to Funding Pips' rules for a defined period. If you meet the profit target while staying within drawdown limits, you pass and gain access to a live funded account where you can earn real profits with a profit-sharing arrangement (up to 100% splits available).

Funding Pips Challenge Rules You Must Know

Before entering a challenge, understand these non-negotiable rules:

• Profit Target: Typically 10% of your starting capital ($500 on a $5K account, $5,000 on a $50K account) for Phase 1. Phase 2 profit targets vary by tier but often range from 5-8%. These numbers are critical—your entire challenge depends on reaching this exact threshold.
• Daily Drawdown Limit: Usually 5% of starting capital per day. On a $5K account, this means you cannot lose more than $250 in a single trading day. Once hit, trading is halted until the next calendar day.
• Maximum Drawdown (Overall): Typically 10% of starting capital across the entire challenge. On a $5K account, this is a $500 maximum loss from your peak equity. Exceed this and your account is liquidated—challenge failed.
• Challenge Duration: Usually 60 days for Phase 1 and 30-60 days for Phase 2. You must achieve your profit target within this window or restart.
• Restricted Instruments: Funding Pips allows forex, crypto, indices, metals, and energies. Notably absent: individual stocks, options, and futures. This constrains your strategy selection significantly.
• Weekend Holding Rules: Positions held over the weekend may be subject to wider spreads or gaps at Monday open. Many traders close all positions Friday to avoid weekend risk, limiting weekend holding exposure.
• News Trading Restrictions: High-impact economic news events (Fed announcements, NFP, etc.) are often restricted or require explicit permission. Scalping around news is typically prohibited. Check Funding Pips' calendar for blackout periods.
• Leverage Cap: Maximum leverage is typically 1:30 or 1:50 depending on the asset class and regulatory jurisdiction. This limits position sizing for accounts under $50K.
• Minimum Position Size: Some brokers enforce minimum lot sizes (0.01 for forex). This prevents penny-sized trades and forces meaningful risk management.

Step-by-Step Strategy to Pass

Step 1: Calculate Your Risk Per Trade (The Math)

On a $5K account with a 10% profit target ($500 to gain) and 10% max drawdown ($500 to lose), your margin for error is razor-thin. This demands strict position sizing.

Formula: Risk Per Trade = (Account Size × Risk %) ÷ Average Pips at Risk per Trade

Example: $5K account, 1% risk per trade = $50 maximum loss per trade. If you're trading EUR/USD and your stop loss is 50 pips away, each pip is worth $10 (standard lot). You can trade 0.5 lots maximum ($50 ÷ 100 pips ÷ $10 per pip = 0.5 lots). This ensures no single trade wipes out more than 1% of your capital.

Recommended Risk Per Trade: 0.5-1% maximum. This is conservative but necessary for a 10% target with a 10% drawdown buffer. Many funded traders use 0.5% to allow multiple losing trades without hitting the max drawdown.

Step 2: Choose Your Core Instruments

Avoid trading all 48 available instruments. Focus on 2-3 pairs with highest liquidity and lowest spreads:

• EUR/USD – Tightest spreads, predictable volatility, most data available
• GBP/USD – Good volatility, major news driver
• Indices (SPX500, FTSE100) – Directional trends, lower correlation to forex pairs

Avoid: Exotic pairs (wide spreads kill your P&L), crypto (excessive volatility on a $5K account), and metals (sharp reversals punish tight stops).

Step 3: Define Your Trading Sessions

Trade only during London and US overlaps (8:00-12:00 UTC) when liquidity peaks and spreads tighten. This is typically 6-8 hours per trading day. Reduce activity during Asian sessions (low volatility, wide spreads). Never trade during the final hour before NY close or during illiquid periods.

Step 4: Set Daily Profit Targets

Divide your Phase 1 profit target across 40 trading days:

Daily Target = (Total Profit Target) ÷ (Number of Trading Days)

Example: $500 profit target ÷ 40 days = $12.50 per day average.

This isn't a daily must-hit—it's a benchmark. Some days you'll gain $30-50, others you'll break even. The point: you need consistent small wins, not one mega-trade.

Step 5: Build a Systematic Entry Framework

Use one of these proven setups:

• Trend Following: Enter when a 20-period moving average crosses the price on a 4-hour chart. Target: 1.5:1 risk-reward ratio minimum (if you risk $50, target $75 profit). Stop loss: 50-60 pips below entry on EUR/USD.
• Support/Resistance Bounce: Identify key levels (previous swing highs/lows from daily chart). Buy near support, sell near resistance. Risk 0.5-1% per trade with stops 30-40 pips away. Reward target: 1.5-2x risk.
• Breakout Trading: Trade breakouts from 4-hour consolidations. Set entry at the consolidation boundary, stop 20 pips beyond, target the full range of the consolidation + 25%.

Step 6: Implement Position Scaling

Once you hit 5% profit on your account (roughly halfway to Phase 1 goal), slightly increase position size—but only to a maximum of 1.5% risk per trade. This accounts for your improved profit cushion. Revert to 0.5-1% if you hit a 5% drawdown (half your max).

Step 7: Plan Your Exit Strategy Before Each Trade

Before entering, know exactly where your stop and target are. Use a 1.5:1 minimum risk-reward ratio. Example: EUR/USD at 1.1200, stop at 1.1150 (50 pips), target at 1.1275 (75 pips = 1.5:1). This ensures that even with a 60% win rate, you're profitable.

Risk Management Framework

The Hard Rules:

• Max Risk Per Trade: 0.5-1% of account. On a $5K account, this is $25-50 per trade. On a $50K account, $250-500 per trade. Never exceed this, regardless of how "sure" you feel about a trade.
• Daily Loss Limit (Soft Stop): 2-3% of account. If you've lost $100-150 on a $5K account, stop trading for the day. This prevents emotional spiral trading and preserves your drawdown buffer. The official limit is 5% ($250), but hitting that is a danger zone.
• Weekly Review Checkpoint: Assess every Friday. If you're down 7%+ of your max drawdown ($35 on $5K), reduce position size to 0.25% for the following week. If you're up 5%+, you're on pace—maintain current sizing.
• Max Open Positions: 2 concurrent trades. This prevents correlating losses (e.g., two long USD pairs moving together). It forces selectivity and reduces noise.
• Correlation Rule: Only one long EUR-based pair at a time. EUR/USD and GBP/USD are highly correlated. One moving against you creates leverage risk. Space them out.
• Never Average Down. If a trade goes against you and hits stop loss, accept it. Adding to a losing position is the #1 reason traders bust funded challenges. The math is against you after a loss.
• No Scalping Under 5-Pip Gains. Target minimum 10-pips profit per trade at minimum. Scalping eats spreads (usually 2-3 pips on major pairs), destroying edge on small wins.

Common Reasons Traders Fail Funding Pips

1. Over-Leveraging Position Size (60% of failures)

Traders enter with 2-3% risk per trade "just this once" because they're chasing a losing trade or see a "sure thing." A $5K account with 2% risk per trade means one bad trade costs $100. Four losing trades in a row ($400 loss) and you're down 8%—closer to the 10% max drawdown limit with no profit yet. Tight position sizing feels slow but is the only way to weather the variance of trading.

2. Revenge Trading (45% of failures)

After a $100 loss on a bad trade, the trader immediately enters two larger positions to "make it back," then loses $300 more. The drawdown mushrooms from 2% to 7% in one hour. Funding Pips challenges reward patience, not speed. A $500 profit target over 40 days is $12.50/day—achievable without heroics.

3. Holding Winners Too Long, Closing Losers Too Fast (40% of failures)

The reverse of good risk management. A trader closes a +15-pip winning trade for $50, but holds a losing trade for 60 pips hoping it reverses. This creates a negative win rate and poor risk-reward. The math doesn't work: 70% win rate on small wins and 30% loss rate on large losses is a losing strategy. Your setup targets (1.5:1 reward:risk minimum) prevent this if followed.

4. Trading During Low-Liquidity Periods (38% of failures)

A trader enters at 22:00 UTC (US late evening) when spreads widen to 5-8 pips on EUR/USD. A 50-pip target requires 57 pips of move to be profitable after spreads. Entries during London close or Asian sessions are slow, gappy, and cost more in slippage. Sticking to 8:00-12:00 UTC (London/US overlap) cuts slippage losses by 50%+.

5. Ignoring Max Drawdown Until It's Too Late (35% of failures)

A trader focuses only on hitting the profit target, not the drawdown ceiling. By day 25, they've gained $450 (90% of target) but are down 8% from peak ($400 loss from starting capital). One bad week of $150 in losses and they've exceeded the 10% max drawdown—disqualified despite being "so close" to the profit target. Drawdown monitoring is as critical as profit tracking.

6. Trading Restricted Instruments or News Events (25% of failures)

A trader attempts to scalp NFP news or enter a stock trade (not allowed on Funding Pips). The position is closed by broker enforcement, the trader is frustrated, and emotional trades follow. Reading Funding Pips' instrument list and economic calendar before the challenge prevents these avoidable losses.

Day-by-Day Sample Challenge Plan (Phase 1: 40 Days)

Days 1-5: Conservative Accumulation

• Target: +$50 total ($10/day average)
• Position Size: 0.5% risk per trade
• Max Trades: 2-3 per day
• Focus: Get comfortable with the platform, confirm spreads, test your strategy on 2-3 pairs
• Acceptable Outcome: +$50 to +$30 (even break is OK—goal is data collection)
• If Down: -$50 to -$75 (stop, reassess your entries, don't lower position size yet)

Days 6-15: Build Confidence

• Target: +$150 total ($15/day average)
• Position Size: 0.5-1% risk per trade (increase only if first 5 days profitable)
• Max Trades: 3-4 per day
• Focus: Refine entries, identify your highest-probability setup (you should see 60%+ win rate on one setup)
• Checkpoint Day 10: If down more than 5% ($250), reduce to 0.5% and focus on recovery
• Acceptable Outcome: Cumulative +$200 minimum (you're 40% to profit target)

Days 16-30: Steady Scaling

• Target: +$200 total ($14/day average) — cumulative $350 through day 30
• Position Size: 1% risk per trade (now you've proven consistency)
• Max Trades: 3-4 per day
• Focus: Execute your highest-conviction setup, take 1.5x+ risk-reward trades only, ignore marginal setups
• Checkpoint Day 20: If down 5-7% from peak, reduce position size to 0.75% for final 10 days
• Checkpoint Day 25: If at +$300 or more, you're 60% to goal—tighten risk management, accept break-even days
• Acceptable Outcome: Cumulative +$350 minimum (down from +$50-75 is a failure state—need to recover)

Days 31-40: Profit Protection Mode

• Target: +$150 total ($15/day average) — reach +$500 cumulative
• Position Size: 0.75-1% maximum risk per trade (protect gains, reduce variance)
• Max Trades: 2-3 per day (quality over quantity)
• Focus: Only trade your highest-conviction setups. Skip breakeven trades. One bad week (down 5%) and you're below profit target—this is the danger zone.
• Checkpoint Day 35: If at +$500, STOP TAKING NEW TRADES. Day trade to maintain, manage risk only.
• Checkpoint Day 38: If below +$450, scale back to 0.5% risk and try to recover in final 2 days—no revenge trading
• Acceptable Outcome: Cumulative +$500 minimum = Phase 1 PASS

Critical Milestones:

• Day 10: Must be break-even or positive. If down 5%+, challenge is at high risk.
• Day 20: Must be at least +2% ($100). If not, your strategy needs adjustment for Phase 2.
• Day 30: Must be at +3.5% ($175) minimum. This is halfway through, need to be 35% to goal.
• Day 40: +10% ($500) = PASS.

Funding Pips vs Other Prop Firms

Funding Pips is competitively positioned but not the easiest challenge. Here's how it compares:

• vs FTMO: FTMO has a 10% profit target (same) and 10% max drawdown (same), but allows stocks and futures. Funding Pips' limited instruments make it slightly harder for diversified traders. FTMO has a larger community and more transparent rules. Edge: FTMO by a small margin for multi-asset traders.
• vs Prop Trader Funded: Prop Trader has a 8% profit target on smaller accounts (easier), but 10% max drawdown is the same. Funding Pips' lower entry cost ($29 vs $59) gives Funding Pips the price advantage. On difficulty: Similar, slight edge to Prop Trader for lower targets.
• vs The 5ers: The 5ers requires 5% profit target (harder than 10%) on the Challenger tier, but 10% max drawdown. Funding Pips is easier on profit target but with similar drawdown. The 5ers' rules are more lenient on news trading. Edge: The 5ers for easier profit targets, but Funding Pips for tighter initial cost.

Funding Pips' main advantage: Instant funding (Zero tier) skips evaluation if you pay $555/month for $100K—useful if you have capital and want to skip testing. Main disadvantage: No stocks limits your diversification strategy compared to FTMO.

What Happens After You Pass

Funded Account Rules:

Once you pass Phase 1 and Phase 2 (if applicable), you receive a live funded account. Key details:

• Profit Split: Up to 100% profit split (your percentage depends on account tier and negotiation). A $5K challenge pass typically nets 80-90% split. A $50K pass might earn 95-100% split. You keep this percentage of profits; Ankh Prop takes the remainder.
• Drawdown Rules Remain: Your live account still has a drawdown limit (typically 10-15% depending on your agreement). This isn't "you keep your capital"—losses still reduce your funded capital. Exceed drawdown and your account is closed and you're removed.
• Payout Schedule: Profits are usually paid monthly (not daily). You trade live for 30 days, submit withdrawal request, and receive profits 5-10 business days later via bank transfer or cryptocurrency (depending on broker).
• Scaling Plan: After consistent months of profitability (3+ months at 5%+ return), you can request account scaling. A $5K funded account might scale to $10K, then $25K. Each tier increases your potential profits proportionally (more capital = larger position sizes).
• Mandatory Metrics: Funding Pips tracks your win rate, risk-reward ratio, and Sharpe ratio. Accounts with negative Sharpe (profits with high variance) may be closed even if profitable. Consistency matters as much as P&L.
• Commissions/Fees: Monthly funding fees are sometimes charged (check your specific agreement). This is deducted from profits or sometimes from your account capital. A $5K funded account might have a $29/month fee (same as challenge).
• Leverage on Live Account: Leverage is usually 1:30 or 1:50 (same as challenge). This limits over-leveraging on live capital—a safety feature for Ankh Prop.
• Withdrawal Process: Profits are withdrawn monthly. You cannot touch your funded capital—it stays with Ankh Prop and is used for future scaling or closed if you exit the program. If you withdraw, the monthly cycle resets and you can claim new profits again the following month.

Scaling Example: Pass a $5K challenge with 12% profit ($600 gain) in Phase 1+2 combined. You're offered a $5K funded account with an 85% profit split. Trade it for one month and earn $400 profit. You receive $340 (85% of $400). After 3 months of consistent profitability (Month 1: $340, Month 2: $425, Month 3: $510), you request scaling to $10K. Your capital doubles, position sizes double, and potential profits scale similarly.

Risk of Live Account: Unlike the challenge where your risk is limited to the $29-555 entry fee, on a funded account you're risking your future income stream. Blow the account with a major loss and you're back to square one. This is why risk management becomes even more critical post-funding.