How to Pass a Prop Firm Evaluation with a VWAP Trading Strategy

The same VWAP trading strategy Lisa runs live — adapted to the drawdown and consistency rules a funded trader evaluation actually grades you on.

Why VWAP suits evaluations

A prop firm evaluation is not a profit contest — it is a drawdown test. VWAP gives you an objective line that defines both the trade and the exit, so losses stay small and repeatable. That matters more than win rate when a single oversized loser ends the account.

The VWAP reversal rules

1. Setup: price extends 1.5–2.5 ATR away from VWAP into the first hour, then prints a failed continuation candle back toward it.
2. Entry trigger: the first 1-minute close back through the prior candle's extreme in the direction of VWAP.
3. Stop: the extreme of the rejection candle, or 4 points on MES / 12 points on MNQ — whichever is tighter.
4. Target: VWAP itself for the first half (roughly 2:1), then trail the rest under each new 5-minute higher low.
5. Risk sizing: risk 0.4% of the evaluation account per trade — a $50k eval with a $2,000 daily loss limit means $200 risk, so five losers in a row still leaves you inside the limit.
6. Invalidation: price closes back beyond the rejection extreme, or VWAP flattens and price chops across it twice — stand down for the session.

Evaluation-specific guard rails

• Stop trading for the day at 2 losers or +1 profit target hit.
• Never carry a position past the close — trailing drawdown is measured on open equity at most firms.
• Spread profit across days: most firms require a consistency rule where no single day exceeds 30–40% of total profit.
• Skip the first five minutes after the bell until VWAP stabilizes.

Watch it run live

Lisa trades this exact VWAP playbook during regular market hours with published entries, stops, targets and P&L. See the full rule set on the VWAP Reversal Scalp playbook or watch it on the live stream.