Now that you're familiar with the first seven steps, you can apply these concepts and run multiple prop firm challenges simultaneously. This approach will tremendously benefit your psychology and mental game while navigating challenges.
If you have four challenges running concurrently, and you've been executing 1:1 to 1:2 RRR trades on all of them while trading at different times of the day or on different days of the week for each challenge, the odds of being in profit on two or more challenges are incredibly high.
You won't worry as much about the challenges in drawdown if you know you currently have challenges in profit with a high potential to pass.
One funded payout can easily pay for 4 challenge costs if you only target a 2.5% profit for your first payout.
So even if you only get funded with one of those four accounts, you will be able to earn back your challenge costs for all four after your first payout, while still having that funded account to trade on again risk-free. This is the power of prop firm trading - risk-free capital that can earn you REAL money. This concept is still mind-blowing every time I think about it.
When considering your budget for prop firm challenges, if you have enough for a $100k challenge at $500, I'd recommend taking four $25k challenges instead.
The cost may be slightly higher to buy four $25k challenges over one $100k challenge, but your short-term resources will be much more forgiving.
This approach avoids an all-or-nothing scenario with your current budget and gives you a much higher probability of at least earning your money back while still gaining valuable trading and prop firm experience.
Here's an example of how mitigating risk across multiple challenges can work:
This is the formula, and it scales with whatever is in your budget. You can take your profits and buy more challenges. The hardest part will be designing a system that allows you to efficiently trade multiple accounts at different times.
A huge challenge for many traders to overcome is overtrading. However, it is very difficult to overtrade when using the right day trading range WHILE trading multiple accounts. There will be enough market action to keep you busy all day if that's what you prefer.