The Final Tape
Prop Trader 1% Rule Checklist
7-day lock-in + 3-line sizing formula — static risk on starting balance
Static vs compounding
- Static (prop standard): Starting balance × 1% — fixed every trade
- Compounding: Current equity × 1% — oversizes after green months
3-line position sizing formula
| Step | Formula | Example ($50k) |
|---|---|---|
| 1. Dollar risk | Reference balance × Risk % | $50,000 × 0.01 = $500 |
| 2. Risk per contract | Stop distance × $/point | 10 pts × $50 = $500 per ES |
| 3. Contracts | Floor(dollar risk ÷ risk per contract) | Floor(500 ÷ 500) = 1 |
Never round contracts up without recalculating step 1.
Day 1 — Create eval portfolio
- Static risk, 1%, exact starting balance
- Success: settings locked before trade one
Day 2 — Log three trades
- Verify planned_risk_$ = balance × 0.01
- Success: all rows match within $1
Day 3 — Compare static vs compounding
- Run both formulas on today's equity
- Success: state effective risk % if compounding were on
Day 4 — Tag manual overrides
- Every size/stop change gets a tag
- Success: no untagged overrides
Day 5 — Flag drift rows
- Highlight planned risk > 1.05× target
- Success: every flag has a documented reason
Day 6 — Paper-trade the formula
- Run 3-line formula before the open
- Success: contracts decided pre-entry
Day 7 — Write one sizing rule
- Document static 1% in one sentence
- Success: rule written and visible
Red flags
- Manual size override with no tag
- Wrong tick value or contract multiplier
- Compounding risk method enabled on eval portfolio
- Starting balance changed after payout (needs new portfolio)
Program sizing examples
| Program | Account | 1% static | Note |
|---|---|---|---|
| TopStep | $50,000 | $500 | ES 10-pt stop → max 1 contract |
| Apex | $25,000 | $250 | Size down until risk ≤ $250 |
| Personal | $10,000 | $100+ | Compounding OK if documented |
Full guide: The 1% Rule for Prop Traders
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