We investigate a Gentzen-style proof system for the first-order $\mu $-calculus based on cyclic proofs, produced by unfolding fixed point formulas and detecting repeated proof goals. Our system uses explicit ordinal variables and approximations to support a simple semantic induction discharge condition which ensures the well-foundedness of inductive reasoning. As the main result of this paper we propose a new syntactic discharge condition based on traces and establish its equivalence with the semantic condition. We give an automata-theoretic reformulation of this condition which is more suitable for practical proofs. For a detailed comparison with previous work we consider two simpler syntactic conditions and show that they are more restrictive than our new condition.