Trading impulsively to recover losses, typically with larger position sizes and lower-quality setups. One of the most destructive behaviors in prop trading.
Revenge trading follows a predictable pattern: consecutive losses trigger frustration, the trader increases position size to recover quickly, the enlarged trade often loses (due to poor decision-making under emotional stress), and the resulting larger loss either breaches drawdown limits or triggers further revenge trading. On a $100K account with 5% daily DD, two 1% losses followed by one 3x revenge trade loss = 5% total = challenge failed. PropWise's Revenge Calculator visualizes this damage.