A profitable backtest can still fail a prop firm test in a single afternoon. The explanation is straightforward: a proprietary trading evaluation is a rule-constrained risk test, not merely a search for profit. The algorithm must balance profitability with strict operational discipline.Passi
Building an Algorithmic Trading System to Pass Prop Firm Evaluations
Many traders discover an uncomfortable truth: an algorithm that makes money is not automatically an algorithm that can pass a prop firm evaluation. That happens because prop firm tests are not ordinary trading accounts. The algorithm must balance profitability with strict operational discipline.