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

Topstep Challenge Overview

The Topstep Trading Combine is a 30-day evaluation period that tests your trading discipline, risk management, and consistency before Topstep funds your account with real capital. Unlike some prop firms that use algorithmic bots to evaluate traders, Topstep places you in a live trading environment from day one, using their proprietary trading platform and data feeds.

Topstep offers three account sizes with corresponding monthly fees:

• $50,000 Funded Account: $165/month during evaluation
• $100,000 Funded Account: $325/month during evaluation
• $150,000 Funded Account: $375/month during evaluation

The evaluation period typically lasts 30 calendar days. Once you pass, your account becomes a funded live-trading account with real capital. Topstep specializes exclusively in futures trading (ES, NQ, CL, GC, ZB, etc.), making it ideal for traders comfortable with leveraged instruments.

One of Topstep's strongest advantages is their 100% profit split on the first $5,000 earned—meaning every dollar you profit in that range goes directly to you. After $5,000, the split typically shifts to 80/20 (you keep 80%). This structure incentivizes traders to hit smaller, consistent targets rather than chasing home runs.

Topstep Challenge Rules You Must Know

Topstep's evaluation criteria are strict but clearly defined. Failing to memorize these rules is the #1 reason traders get disqualified. Here are the non-negotiable requirements:

• Daily Loss Limit: You cannot lose more than 5% of your account value in a single trading day. On a $50K account, that's a $2,500 max daily loss. On a $100K account, that's $5,000. Once you hit this limit, your trading day ends automatically—all positions are closed by Topstep's system.
• Maximum Drawdown: Your cumulative loss from peak equity cannot exceed 10% of your starting account balance. On a $50K account, your absolute floor is $45,000. If your equity drops below that, your evaluation is over. This is the most dangerous rule because it's cumulative—multiple small losing days can disqualify you.
• Profit Target: You must achieve a minimum profit of 10% of your account size within the 30-day period. On a $50K account, you need $5,000 in net profit. On a $100K account, you need $10,000. This target is non-negotiable.
• No Automated Trading: All trades must be manually executed. Topstep explicitly prohibits algorithms, bots, or any automated order execution. Your trades must come from manual decisions.
• Futures Only: You are restricted to futures contracts (ES, NQ, CL, GC, ZB, YM, etc.). Crypto, forex, equities, and options are not permitted in the Topstep combine.
• Weekend Holding Restriction: You cannot hold overnight or weekend positions during the evaluation period. All trades must be closed by end-of-day. This eliminates gap risk and forces day-trading discipline.
• News Trading Restrictions: Major economic announcements, FOMC decisions, and non-farm payroll events have restricted trading windows. Topstep typically limits trading 15 minutes before and after these events to reduce volatility-driven losses.
• Consistency Requirement: You must demonstrate consistent profitability. A single profitable day followed by a huge loss won't cut it. Topstep wants to see traders who can accumulate profits steadily without emotional breakdowns.

Step-by-Step Strategy to Pass

Step 1: Calculate Your Maximum Risk Per Trade

This is where the math becomes critical. Your daily loss limit is 5%, and your max drawdown is 10%. You need a formula that prevents you from blowing through both simultaneously.

Formula: Risk Per Trade = (Max Daily Loss / Expected Win Rate) × 0.5

Example: If you expect a 55% win rate and your max daily loss is $2,500 (5% of $50K account), your maximum risk per trade should be $2,500 ÷ 0.55 × 0.5 = $2,273 per trade. But that's too aggressive. Instead, use this: Max risk per trade = 0.5-1% of account value.

On a $50K account, that's $250–$500 per trade. On a $100K account, that's $500–$1,000 per trade. Conservative traders should start at 0.5%; aggressive traders can push to 1%, but never higher.

Step 2: Choose Your Core Instruments

The ES (E-mini S&P 500) and NQ (E-mini Nasdaq-100) are the most liquid and forgiving futures for breakeven evaluation traders. Their tight bid-ask spreads mean your slippage is minimal. Start with ONE instrument only. Trading multiple futures adds noise and increases the probability of hitting your daily loss limit by 40%.

Step 3: Define Your Session Strategy

Don't trade the entire market open (9:30 AM–4:00 PM ET). Instead, focus on the first 1–2 hours (9:30–11:30 AM) when volatility is highest and moves are cleanest. This is when the ES typically moves 20–60 points in a direction. Then take a break. The midday market (11:30 AM–2:00 PM) is choppy and unprofitable for most traders. Avoid it.

Step 4: Set Daily and Weekly Targets

Your overall target is 10% in 30 days. Mathematically, that's 0.33% per day. But banking it that way is unrealistic. Instead, aim for 5 days of +1–2% and 25 days of breakeven or small losses. Days 1–10, target +0.5%–1% per day (small, incremental). Days 11–25, target +1–1.5% per day (steady building). Days 26–30, protect profits and go mostly flat. Never aim for more than 2% in a single day—if you hit it, stop trading.

Step 5: Create Your Trade Entry and Exit Rules

You need a mechanical rule-based system. Example:

• Entry: When ES breaks above the 9:30 AM open + 1 ATR (Average True Range).
• Stop Loss: 0.5 ATR below entry (typically 5–8 ES points).
• Target: 1 ATR above entry, or trailing stop at 0.5 ATR.
• Max 3 trades per day. If you've taken 3 trades and are at breakeven or positive, close platform and walk away.

The specificity matters. Vague entries like "when it looks good" guarantee failure.

Step 6: Track Everything Religiously

Use Topstep's built-in journaling tool or a spreadsheet. For every trade, log: entry time, entry price, entry reason, stop price, target price, exit price, exit reason, P&L. At end of each week, calculate your win rate, average win, average loss, and profit factor (gross profit ÷ gross loss). If your profit factor falls below 1.2, you're in trouble—recalibrate.

Step 7: Manage Psychological Breaks

If you have a losing day (hit your 5% limit) or a series of 3 consecutive losses, take a full trading day off. This isn't laziness; it's necessary to reset your nervous system and prevent revenge trading. Revenge trading is the #1 killer of prop firm evaluations.

Risk Management Framework

Maximum Risk Per Trade: 0.5–1% of Account

On a $50K account: $250–$500 per trade. On a $100K account: $500–$1,000 per trade. This ensures you can take 10–20 losing trades before hitting your daily loss limit. The math: if you lose $500 per trade and your daily limit is $2,500, you can afford 5 losses. With a 55% win rate, that's sustainable.

Daily Loss Stop: 3% of Account (not the full 5% allowed)

Topstep allows a 5% daily loss, but you should set your personal stop at 3%. This protects your 10% max drawdown and prevents emotional spiral. On a $50K account, stop at $1,500 loss. Once hit, close the platform. Discipline here saves 15% of evaluations.

Position Sizing Formula

If you risk $500 per trade and ES is at 5,200, and you place a stop 10 points below entry (5 ES points = $250 per contract), you can trade 2 contracts ($500 ÷ $250 = 2).

Drawdown Tracker

Your max drawdown limit is 10% ($5,000 on a $50K account). If your starting equity is $50K and you've lost $3,000, you're at 6% drawdown. You have $2,000 left before evaluation termination. This is the danger zone. Scale down position sizes immediately.

Common Reasons Traders Fail Topstep

1. Overtrading (40% failure rate)

Taking 8–12 trades per day burns through your daily loss limit. Successful traders average 2–3 trades per day. Each trade is another coin flip. Stop after 3 trades, even if they're winners.

2. Revenge Trading After Losses (35% failure rate)

One $800 loss, and suddenly you're doubling position size on the next trade to "make it back." That's how $800 losses become $5,000 days. When you lose, scale down, not up.

3. Holding Positions Overnight (20% failure rate)

Topstep explicitly forbids overnight holds. You must close all positions by 4:00 PM ET. Traders who "accidentally" hold ES overnight hoping for a gap up inevitably get gapped against and blow accounts. The rule exists for a reason.

4. Trading Illiquid Contracts (15% failure rate)

Traders pick ZB (Treasury Bond futures) or CL (crude oil) because they're "different." These contracts have wider spreads, less volume, and higher slippage. Stick to ES and NQ for the first evaluation. Experts can branch out after passing.

5. Not Using Stops (50% failure rate for repeat offenders)

Placing an entry without a pre-determined stop is how traders blow accounts. Every trade must have a stop at entry time. No exceptions, no "I'll stop myself." Use orders, not hope.

6. Chasing News Events (30% failure rate)

Trading in the 15 minutes surrounding FOMC decisions, NFP, or unemployment reports results in 10-second moves of 20+ ES points. Your stop gets blown through before you can exit. Avoid these windows entirely during evaluation.

Day-by-Day Sample Challenge Plan

Days 1–5: Foundation Phase (Target: +2.5% cumulative)

• Day 1: Take 1–2 small trades, aim for +0.3%. Primary goal: prove to yourself the system works.
• Day 2–3: 2–3 trades per day, aim for +0.5% per day. You're testing entry signals and building confidence.
• Day 4–5: 2–3 trades per day, aim for +0.5–0.8% per day. Total by end of day 5: +$1,250 on $50K account.

Days 6–15: Building Phase (Target: +7.5% total, cumulative from Day 1)

• Days 6–10: 3 trades per day, aim for +1% per day. You're confident in your system. Scale position size from 1 contract to 2 contracts on ES.
• Days 11–15: 2–3 trades per day, aim for +1.2% per day. You're building toward your profit target. Cumulative should be $3,750–$5,000 by Day 15.

Days 16–25: Steady Phase (Target: +9.5% total)

• Days 16–20: 2–3 trades per day, aim for +0.8–1% per day. Maintain position size. Tighten stops to lock in small wins.
• Days 21–25: 1–2 trades per day, aim for +0.5% per day. You're nearing the goal. Reduce aggression. Let small wins compound.

Days 26–30: Preservation Phase (Target: +10% total)

• Days 26–28: 1 trade per day maximum, aim for +0.3%. You're almost across the finish line. One blown day here kills everything.
• Days 29–30: Trade only if you see a pristine setup. Otherwise, go flat. Protect the +$5,000 you've earned. Topstep evaluations fail in the last 2 days because traders get complacent and lose discipline.

Realistic Equity Curve: Start $50K → Day 5: $51,250 → Day 15: $53,750 → Day 25: $54,750 → Day 30: $55,000+ (passed).

Topstep vs Other Prop Firms

How does Topstep stack against competitors?

Topstep vs FTMO

FTMO is stricter: 8% max drawdown (vs Topstep's 10%) and a 10% profit target across both Phase 1 and Phase 2 evaluations. Topstep is more forgiving. However, Topstep vs FTMO comparison shows FTMO has lower monthly fees ($165 for FTMO vs $165–$375 for Topstep's larger accounts).

Topstep vs Apex Trader Funding

Apex allows overnight holding of positions, which Topstep forbids. For swing traders, Apex is easier. For day traders, Topstep's no-overnight rule forces cleaner exits. Topstep's consistency reputation is stronger; Apex is known for faster payouts.

Topstep vs TradingView's Brokerage

TradingView doesn't run evaluations—it's just a brokerage with lower commissions. If you already have $10K+ to deposit, TradingView is cheaper. But if you need funding without capital, Topstep is the only option.

View all prop firm reviews and comparisons.

What Happens After You Pass

Funded Account Structure

Once you pass the 30-day evaluation, Topstep deposits your chosen account size ($50K, $100K, or $150K) into a live trading account under their LLC. You trade with real capital and real leverage. You do not own the account—Topstep does—but you control trading decisions.

Profit Split

Your first $5,000 in cumulative profits: 100% yours. Every dollar earned above that: 80/20 split (you get 80%, Topstep keeps 20%). There's no fee once funded. You only pay commissions ($1.50–$2 per micro contract roundtrip on ES).

Payout Schedule

Most payouts are processed within 5–10 business days after the close of the payout month. Topstep pays via wire transfer or ACH. You can request payouts monthly or reinvest profits to scale your account.

Scaling Plan

After 2–3 months of consistent profitability on your initial account, you can request an increase. Many Topstep traders scale from $50K → $100K → $150K within a year. Each scale typically requires you to demonstrate 2–3 months of profitability on the existing account size.

Termination Rules

Your funded account can be terminated if you exceed a 20% drawdown on live capital (stricter than evaluation), violate rule constraints (overnight holds, automated trading), or become inactive for 30+ days. Once terminated, you cannot immediately re-evaluate. Most traders must wait 30–60 days before attempting again.

Bottom Line

Topstep's evaluation is designed to test three things: (1) Your ability to manage risk, (2) Your discipline to stick to rules, (3) Your consistency over 30 days. Traders who pass are the ones who trade smaller, take fewer trades, and never revenge trade. If you can consistently average 0.33% daily returns, manage drawdown, and avoid emotional blowups, Topstep will fund you.