A new challenge grades traders on pips earned rather than dollar gains, removing position size distortions in prop firm evaluations.
Pipcy, a proprietary trading firm with traders in 47 countries, has launched the Pips Mastery Challenge, the first evaluation system based on pips rather than dollar profits. The approach eliminates the impact of position sizing, testing only trading skill across accounts of varying sizes, from $2,500 to $100,000.
Traditional prop firm evaluations require traders to grow a simulated account by 8 to 10 percent without breaching drawdown limits. However, these dollar-based tests often reward aggressive risk-taking rather than consistent trading, with most participants failing due to over-leveraging.
The new system aims to address this flaw by standardizing performance measurement, ensuring traders are judged on execution rather than luck or risk appetite.