Why do most prop firm accounts fail? What 180,000 trades show
In FundedCobra's data on about 180,000 closed trades (May to October 2026), most accounts ended on a loss limit, and they ended early. 47% of accounts that breached did so within 24 hours of their first trade. On one account type, the open-loss, overall and daily loss limits caused 29%, 27% and 23% of breaches. A trader's early results did not predict their later ones.
FundedCobra accounts are simulated: no real money is traded. This article is education, not investment advice. Most accounts end on a rule before a payout. Payouts depend on meeting the published rules.
On this page
- How we measured: the sample behind these prop firm statistics
- Prop firm breach reasons: which rules ended accounts
- How traders traded: gold, short holds and modest average size
- Prop firm pass rate: how often traders reached a profit target
- Practical lessons from the data on staying inside prop firm rules
- Check which rule actually ends accounts on the account you pick
- Frequently asked questions
- Sources
How we measured: the sample behind these prop firm statistics
The figures come from FundedCobra's own records of about 180,000 closed trades on 15,400 accounts, from May to October 2026. Inside that sample, one older account type called Cobra Venom gives the deepest view: 3,911 accounts and 86,949 trades. It is no longer sold, but its breach records are the most complete, so the breach table uses it.
Every account is simulated. Prices come from live market data, but no trade reaches a real market. A "breach" means a rule ended the account. A "payout" is a reward FundedCobra paid from its own funds, in USDT.
Keep three limits in mind as you read:
- This is one firm's data, with its own rules and its own customers. Other firms may see different numbers.
- Six months is a short period.
- The figures describe what already happened. They are not a forecast for any one trader, and nothing on this page is investment advice.
Prop firm breach reasons: which rules ended accounts
Most accounts in our data ended because a loss limit was hit, not because of a rare or hidden rule. On paid Cobra Venom accounts, these were the causes:
| Rule that ended the account | Share of breaches |
|---|---|
| Open (floating) loss limit | 29% |
| Overall drawdown | 27% |
| Daily drawdown | 23% |
| 60-second minimum hold | 13% |
| Risk per trade | 5% |
| Hedging | 3% |
Timing matters as much as the cause. 47% of accounts that breached did so within 24 hours of their first trade. Many accounts did not fade over weeks. They ended on the first day.
We also looked at the two newer products in early November 2026. The samples are very small, so treat them as early signs only. The share of paid accounts that breached within their first 24 hours was:
- King Cobra: 1 of 8 (12%)
- Venom 2.0: 5 of 16 (31%)
- Older Cobra Venom accounts, same period: 44 of 393 (11%)
On Venom 2.0, the most common breach so far is the 3% trailing daily loss.
How traders traded: gold, short holds and modest average size
The typical trade in our data was a short gold trade at a modest size. 74% of all trades were on gold (XAUUSD). The median trade was held 8 to 10 minutes. Average risk per trade was about 0.6% of the account.
On average, traders were not reckless. So why did so many accounts end early? An average hides the worst trade. One oversized gold trade, or a few losses in a row on a fast day, is enough to reach a daily or overall limit. Gold can move several dollars in minutes, so a large position there uses up a loss limit quickly.
Skill did not show up in short-term results
We compared winning and losing traders on every behaviour we measured: number of trades, hold time, instrument and trade size. They looked the same. We also split each trader's trades into a first half and a second half. Across 1,424 accounts with 20 or more trades, the first half did not predict the second (correlation of −0.06, which is close to zero).
In plain words: a good first week told us almost nothing about the next one. This does not prove that nobody has skill. It shows that a short run of results is mostly noise, in both directions.
Prop firm pass rate: how often traders reached a profit target
Profit targets were reached far less often than loss limits were hit, and bigger targets were much rarer. We took the same traders' trades and checked how many accounts would have reached each target.
| Profit target | Accounts that reached it |
|---|---|
| +5% | 17% |
| +8% | 7% |
| +10% | 3.4% |
Doubling the target from 5% to 10% cut the share of accounts that got there by about five times. For reference, King Cobra needs 5% profit before every payout and Venom 2.0 needs 8%. These are rates measured on past trades. They are not a pass rate any reader should expect.
What payouts looked like
490 accounts received at least one payout in the period. The median payout was 2.4% of the account size. Payouts were uneven: the top 10% of payouts made up 38% of all dollars paid.
A payout was also not the end of the story. 79% of accounts that were paid out later breached. Traders whose first account paid out bought again 53% of the time. Traders whose first account breached bought again 27% of the time. Each on-chain payout links to its Tronscan record on our payout proof page.
Practical lessons from the data on staying inside prop firm rules
The data points to one pattern: accounts end when one day or one trade takes too much of a fixed loss limit. These lessons are about the rules, not about which way to trade.
- Size small against the daily limit, not against the account. Work out the day's loss room in dollars first. Then ask how many losing trades in a row that room can survive.
- Avoid one oversized trade. Average risk was only 0.6%, yet accounts still broke early. Leverage only limits how big a trade can be. On King Cobra and Venom 2.0, gold is 1:10, and on a $5,000 account a full-size gold trade can reach the 1% per-trade limit when gold moves just a few dollars. See instruments and leverage.
- Use a stop on every trade. A stop inside the 1% per-trade limit keeps that rule from ever touching you. On Venom 2.0 a stop loss is required on every trade and is checked when you ask for a payout.
- Slow down on day one. With 47% of breaches inside the first 24 hours, the first day is where the most accounts were lost.
Check which rule actually ends accounts on the account you pick
Each account type ends for different reasons, so read its rule card before you buy. The breach table above came from an older product. The two accounts sold now differ:
| Rule | King Cobra | Venom 2.0 |
|---|---|---|
| Daily loss | 4%, fixed for the day | 3%, trailing within the day |
| Overall max loss | 10%, fixed | None |
| Open-loss limit | None | None |
| Max risk per trade | 1%: first hit closes the trade and the split drops to 30%, second hit ends the account | Same as King Cobra |
| Quick closes | No minimum hold | Closing by hand in under 60 seconds twice ends the account |
| News trading | Allowed | Not allowed unless added at checkout |
| Hedging on the same pair | Ends the account | Ends the account |
| Profit needed before each payout | 5% | 8% |
The trailing daily loss on Venom 2.0 is the rule to understand first, because it is the most common breach there so far. The floor follows your highest equity of the day, and it never moves down during the day.
Full details are in the King Cobra rules, the Venom 2.0 rules and how the daily loss works.
If you want to test your sizing first, the free 3-day $5,000 demo uses King Cobra rules with the same prices and commission as a paid account. It is practice only and is never paid out. When you are ready, you can compare both accounts.
Frequently asked questions
Why do most prop firm traders fail?
In FundedCobra's data, most breaches came from loss limits: the open-loss limit (29%), overall drawdown (27%) and daily drawdown (23%) on paid Cobra Venom accounts. 47% of accounts that breached did so within 24 hours of their first trade.
What is the prop firm pass rate?
There is no single number. In our May to October 2026 data, a +5% target was reached by 17% of accounts, +8% by 7% and +10% by 3.4%. These describe past trades, not what any trader should expect.
Does a payout mean a trader is skilled?
Not on its own. 79% of accounts that received a payout later breached, and a trader's first half of trades did not predict their second half (correlation of −0.06).
Are FundedCobra accounts real money?
No. Every account is simulated and priced from live market data. Payouts are rewards paid in USDT from FundedCobra's own funds.
Sources
- FundedCobra internal analysis of about 180,000 closed trades on 15,400 accounts, May to October 2026. Breach causes come from the Cobra Venom subset (3,911 accounts, 86,949 trades).
- FundedCobra internal data on paid accounts in early November 2026 (small samples).
- Help centre: King Cobra, Venom 2.0, Understanding daily loss, Instruments and leverage, Spreads and commission, Try the terminal free.
- Payout records with Tronscan links: payout proof.
How this article was made: drafted with AI help from FundedCobra’s live rules and its own trade data, then checked against the rules in force on 7 November 2026. Rules change; the help centre always has the current version.