Top Prop Trading Strategies for 2025: What You Need to Know

Finding a prop trading strategy that suits your skills, experience, and goals is key to success at Plus Markets. Traders who find and stick to a proven strategy are more likely to make smart trading decisions that lead to payouts. 

In this post, we’re diving into the best strategies you need to keep your trading game strong in 2025. We will also explain how to choose a strategy as a new prop trader so that you can hit the ground running.

1. Scalping

Scalping is a strategy that’s been around for a while, and it’s not going anywhere. 

In 2025, with fast internet speeds and sophisticated algorithms, it’s easier than ever to capitalise on small price movements. 

Scalpers aim to make multiple trades throughout the day, often holding positions for just seconds or minutes. 

They thrive on liquidity and volatility, targeting tight spreads and small price shifts.

How to make scalping work for you:

• Leverage technology: Use trading platforms with fast execution and low spreads.
• Focus on liquid markets: Stick to markets that have high liquidity like major forex pairs or large-cap stocks.
• Keep your risk low: Since the profit per trade is small, it’s crucial to keep your risk and position sizes in check.

Scalping can be exhausting, but if done right, it can bring in consistent profits. 

In 2025, advancements in algorithmic trading will only make this strategy more accessible for prop traders.

2. Swing Trading

If you’re not into the fast-paced nature of scalping, swing trading might be a better fit. 

Swing trading involves holding positions for a few days or weeks to capture the "swing" or movement in the market. Traders look for trends, using technical analysis to find key entry and exit points. 

In 2025, with more volatile markets and tools like machine learning helping to predict market moves, swing trading has the potential for big rewards.

How to make swing trading work for you:

• Spot trends early: Use tools like moving averages or trendlines to find emerging trends.
• Focus on high-volume stocks or forex pairs: This ensures that your trades will move enough to capture a swing.
• Manage risk: Use stop losses and position sizing to protect your account from large swings.

Swing trading isn’t as intense as scalping but offers opportunities for more significant gains with less constant monitoring of the markets. 

In a volatile market like the one we’re expecting in 2025, swing trading can be a great way to catch major moves.

3. Algorithmic Trading

In 2025, algorithmic trading will become even more popular. Algorithms, or "bots", are programs that follow predefined instructions to execute trades based on specific criteria. 

Prop traders can use these bots to take emotions out of the equation and focus on data-driven decisions. 

With the increasing availability of AI-driven tools, algorithmic trading will allow traders to monitor more markets and execute trades faster than ever.

How to make algorithmic trading work for you:

• Choose the right algorithm: You can find or develop algorithms that fit your trading style (trend-following, mean-reversion, etc.).
  
• Test, test, and test again: Always backtest your algorithm before using it with real money. This helps identify potential flaws.
  
• Adjust based on market conditions: Algorithms can work well in stable markets, but they need tweaking in more volatile environments. Make sure to adjust them as needed in 2025’s unpredictable markets.
  

While setting up algorithmic trading strategies requires technical knowledge, once they’re set, they can run 24/7, helping you make the most of every market opportunity without being glued to your screen.

It’s important to note here that not all algorithmic trading strategies are allowed at Plus Markets. Please review our trading rules and prohibited practices before proceeding. 

4. Trend Following

Trend following is all about identifying and capitalising on long-term trends. Whether you're trading stocks, forex, or commodities, trends are the backbone of many prop traders' strategies. 

In 2025, the growing number of economic events and geopolitical issues could create more pronounced trends, making this strategy especially relevant.

How to make trend following work for you:

• Use technical indicators: Tools like moving averages, MACD, and RSI can help confirm the direction of the trend.
• Ride with the trend: Always trade in the direction of the trend, and avoid fighting the market. The goal is to capture a piece of the big price movement.
• Patience is key: Trend following requires patience. Stay in the market as long as the trend is intact, and exit once the trend shows signs of reversing.

In 2025, with increased volatility and changing market conditions, trend following will continue to be a powerful strategy for prop traders who are willing to hold positions through market swings.

Similar to algorithmic trading, please review our trading rules before you implement any trend following strategies. 

5. Range Trading

While trend traders are looking for momentum, range traders are looking for the opposite: flat, sideways markets. 

Range trading involves identifying support and resistance levels and buying at support or selling at resistance, expecting the price to bounce between the two levels. 

This strategy can work well in markets that are stuck in a range, offering opportunities for consistent profits.

How to make range trading work for you:

• Identify key levels: Support and resistance are crucial. Use tools like Fibonacci retracements or pivot points to identify these levels.
• Use oscillators: Indicators like RSI or Stochastic are perfect for range-bound markets. When they’re near the extremes, it’s a good time to trade.
• Manage risk: Since range trading involves trading close to market extremes, make sure to place tight stop losses to protect yourself from breakouts.

2025 could offer plenty of range-bound markets as the economy reacts to new changes, making this strategy relevant for prop traders looking for consistency without the need for constant market movement.

6. News-Based Trading

In today’s fast-paced market, news events can cause sharp, short-term price movements. Whether it’s economic data releases, earnings reports, or geopolitical developments, news events create opportunities for quick profits. 

In 2025, as news flow continues to accelerate and global events shape market sentiment, news-based trading could become even more popular among prop traders.

How to make news-based trading work for you:

• Follow the calendar: Keep an eye on economic calendars for important news events like interest rate decisions, GDP releases, and corporate earnings.
• React fast: News-based trading requires quick decision-making. Be prepared to act immediately after a news release.
• Keep an eye on volatility: News events often lead to increased volatility. Be ready to adjust your position sizes and use tighter stops.

If you can stay on top of global events and react quickly, news-based trading offers great potential for prop traders who thrive on fast-paced action.

How to Choose the Right Strategy for You

No matter what prop trading strategy you choose, remember that success in 2025 will depend on your ability to stay disciplined, manage risk, and adapt to changing market conditions. 

The best prop trading strategies combine a solid understanding of the market, a well-tested plan, and the ability to stay emotionally controlled under pressure.

In 2025, we’re likely to see even more volatility and change in the markets. As a prop trader, it’s important to stay ahead of these shifts, continuously refining your strategies to maximize your chances for success.

The best way to determine which strategy will work the best for you is to practice in a simulated environment. At Plus Markets, we offer a 2-step and 3-step challenge, which allows you to test different strategies in a simulated environment before the final challenge phase. 

We recommend taking your time to test different strategies and familiarise yourself with the Match Trader technology before proceeding to the final stage of your challenge.