- Daily loss (5%) is based on the previous day’s close, not start-of-day equity — losing days shrink tomorrow’s headroom
- The minimum is 3 profitable days of at least +0.5% each, not 3 trading days
- No time limit on either step — plan the target as 3–4 chunks of 2.5–3%, never one home run
On paper, The5%ers High Stakes looks like a standard two-step evaluation: +10%, then +5%, with 10% max loss. But two parameters work differently from most of the industry — the basis for the daily loss and the definition of a minimum day — and generic challenge advice does not cover either. This guide is specific to the High Stakes rule set; for principles that apply to any evaluation, see how to pass a prop firm challenge, and for the full The5%ers rule set across all three programs, The5%ers rules explained.
Figures below reflect the official site as of July 2026. Conditions can change, so verify before purchasing.
1. The five parameters that decide everything
| Item | Rule |
|---|---|
| Steps | 2 (Step 1: +10% / Step 2: +5%) |
| Time limit | None, on both steps |
| Max loss | 10% of initial balance (static, never trails up) |
| Daily loss | 5% of the previous day’s closing balance |
| Minimum days | 3 profitable days, each ≥ +0.5% of initial balance |
Leverage is 1:100 and weekend holding is allowed. News trading carries restrictions, so check the official conditions if your strategy trades through releases.
The 10% max loss is absolute: on a $20,000 account the breach line sits at $18,000 permanently. Profits never drag it upward, which removes the pressure that trailing-drawdown firms create.
2. The daily loss: previous day’s close, not start-of-day equity
Most two-step firms — FTMO and FundingPips among them — anchor the daily loss to the higher of balance or equity at the start of the trading day. High Stakes anchors it to yesterday’s closing balance instead. Two consequences follow:
- Profits you bank today effectively widen today’s remaining headroom, because the breach line was fixed last night.
- A day that closes lower resets tomorrow’s base lower, so the allowance shrinks exactly when you are most tempted to size up and recover.
Worked example: $20,000 account
Say you closed yesterday at $20,400.
| Item | Amount |
|---|---|
| Previous day’s close | $20,400 |
| Today’s daily allowance | $1,020 (5% of $20,400) |
| Today’s breach line | $19,380 |
That breach line sits 3.1% below the initial balance — your accumulated profit is acting as a cushion. Had you closed yesterday at $19,600 instead, today’s allowance would be only $980 and the line would sit at $18,620.
The practical takeaway: the day after a losing day is when your allowance is smallest, so revenge-sizing after a red day is the single most dangerous behavior under this rule. Floating losses count toward the daily loss, so stacked open positions can breach it even without a closed loss.
3. The 3-profitable-days trap
This is the rule that catches traders who did everything else right. You need three days that each close at +0.5% of the initial balance or better — not three days on which you traded.
On a $20,000 account, a qualifying day needs at least +$100. A day that closes at +$60 (+0.3%) contributes nothing to the count.
The classic failure: a trader catches a strong trend and hits the +10% target in two big days. The target is done, but only two days qualify — so they must now engineer a third day of at least +$100 while sitting on a finished account, where every trade is pure downside. It sounds trivial and feels anything but.
The fix is to plan the target as installments from the start:
| Plan | Shape | 3-day condition |
|---|---|---|
| Home run | +10% in 1–2 days | Not met — extra day required |
| Installments (recommended) | 3–4 chunks of +2.5–3% | Met automatically |
Split Step 1 into three or four days of +2.5–3% and the day-count condition takes care of itself. For Step 2 (+5%), think three days of +1.5–2%.
4. Using unlimited time correctly
No deadline is not a footnote — it is the biggest statistical edge High Stakes gives you. Under a 30-day clock, traders force entries as the calendar runs down; that pressure simply does not exist here. You are allowed, by design, to trade only when your setup is present and do nothing otherwise.
Self-imposed limits that convert the unlimited clock into a pass rate:
- Risk 0.5–1% of initial balance per trade
- Stop trading for the day at −2% to −3% — well inside the 5% rule
- Treat a flat day as neutral, not as falling behind; there is no schedule to fall behind
Stopping at −2% also protects tomorrow: it limits how far the previous-day-close base drops, keeping the next day’s allowance close to full size.
5. A model risk plan, step by step
Using a $20,000 account, 0.75% risk per trade ($150), and a 1.5R average winner ($225):
Step 1 (+10% = $2,000)
| Item | Value |
|---|---|
| Risk per trade | $150 (0.75%) |
| Winner (1.5R) | $225 |
| Net wins needed | About 9 |
| Daily target | +$500–600 (+2.5–3%) |
| Expected qualifying days | About 4 |
At a 50% win rate that is roughly 20 trades. Limiting yourself to two or three trades a day also keeps stacked floating losses far from the daily line.
Step 2 (+5% = $1,000)
Half the profit at identical risk: about five net wins, or three days of +1.5–2%. There is no arithmetic argument for raising risk in Step 2 — the required edge went down, not up.
The underlying principles are covered in risk management for prop challenges.
6. Step 2: half the target, most of the failures
Step 2 asks for +5% — objectively easier than Step 1. Yet this is where a large share of failures happen, and the mechanism is almost always the same: traders carry the adrenaline of passing Step 1 straight into the next account and rush. Bigger lots, more trades, unfamiliar instruments — every habit that got them through Step 1 gets abandoned at exactly the moment it should be repeated.
The countermeasure is mechanical:
- Keep the identical risk settings from Step 1 (0.5–1% per trade). Change nothing.
- Split +5% into three days of +1.5–2% — which also satisfies the 3-profitable-days rule.
- If anything, trade less in the days right after passing Step 1.
There is no deadline, so there is no rational reason to hurry. Step 2 does not test a new skill; it tests whether Step 1 was repeatable.
Summary
- The daily loss follows yesterday’s close — the allowance is smallest right after a losing day, so never size up to recover.
- Three profitable days means three days at +0.5% or better. Plan 3–4 chunks of +2.5–3% and the condition solves itself.
- Unlimited time is the edge: 0.5–1% per trade, stop at −2% to −3% daily, and skip days without a setup.
- Step 2 is Step 1 repeated at half the distance. Same risk, same rhythm.
After passing, the split starts at 80% and scales to 100%, accounts grow to $500,000 (with a fixed salary at the $350K/$500K tiers), and the first payout refunds 70% of the fee. Payouts are bi-weekly, $150 minimum, via Rise, bank transfer, or crypto — details in The5%ers payout guide and The5%ers scaling explained.
Recommended prop firms
The5%ers — unlimited time, static drawdown
Operating since 2016. High Stakes combines no time limit with an absolute max-loss line, and the split scales from 80% to 100%.
→ The5%ers official (coupon “HZZS4” for a discount)
Fintokei — fast payouts, Asia-focused
JPY-denominated plans with payouts typically processed within about one business day, per official claims.
→ Fintokei official (coupon “FINTO5KEI” for 5% off)