FTMO is the gold standard of prop firms. They've funded thousands of traders and paid out over $100 million in profits. But here's the reality: only 10-15% of traders pass the Challenge.
Most fail not because they lack trading skill, but because they don't understand the game. The FTMO Challenge isn't about proving you can make money — it's about proving you can manage risk.
This guide will show you exactly how to join the 10% who get funded.
1. FTMO Rules You Must Know
Before you trade a single lot, memorize these rules. Breaking any of them means instant failure — no second chances.
| Rule | Challenge | Verification |
|---|---|---|
| Profit Target | 10% | 5% |
| Maximum Daily Loss | 5% | 5% |
| Maximum Total Loss | 10% | 10% |
| Minimum Trading Days | 4 days | 4 days |
| Time Limit | 30 days | 60 days |
| Profit Split | — | 80-90% |
The 5% daily loss limit is calculated from your starting balance of the day, not your current equity. If you start the day at $105,000 and your daily loss limit is $5,000, you get stopped out at $100,000 — even if your total account is still above the max drawdown limit.
The Hidden Rules
- No holding over weekends (some account types) — Check your specific plan
- No news trading — Can't open/close positions 2 minutes before/after high-impact news
- No copy trading — They detect identical trades across accounts
- Consistency rule — No single day can exceed 45% of total profits (they added this)
FTMO Profit Calculator
Check if your trading stats would pass the FTMO Challenge before you start.
2. The Best Strategy to Pass
Here's the truth most "gurus" won't tell you: the best strategy is the one you already trade profitably.
The FTMO Challenge is not the time to learn a new system. If you don't have a profitable strategy yet, get one first. Backtest it. Forward test it. Trade it live with your own money. Then — and only then — attempt the Challenge.
What Works Best
- Swing trading — 1-3 trades per day, hold for hours to days
- Session-based trading — Trade London or New York session only
- Multi-timeframe analysis — Higher TF for bias, lower TF for entry
- Clear entry rules — No "feeling" trades, only setups that match your criteria
What Doesn't Work
- Scalping — Too many trades, too easy to overtrade and hit daily loss
- Martingale/averaging down — One bad run ends your Challenge
- News trading — Explicitly prohibited by FTMO
- Copy trading/signals — Against terms and easily detected
Most funded traders use simple price action strategies — support/resistance, supply/demand, trend following. Fancy indicators don't improve your odds. Risk management does.
3. Risk Management Setup
This is where most traders fail. They know they should risk 1% — but when they're at 8% profit on day 25, they risk 3% trying to finish early. Then they blow it.
The Math That Gets You Funded
Let's say you're trading a $100,000 Challenge:
- Profit target: $10,000 (10%)
- Daily loss limit: $5,000 (5%)
- Max loss limit: $10,000 (10%)
If you risk 0.5% per trade ($500) with a 2:1 R:R:
- Each win = $1,000
- Each loss = $500
- You need 10 wins to hit target
- You can take 20 losses before max drawdown
Risk 0.5-1% per trade. Maximum 2 trades open at once. Target 2:1 or better R:R. This gives you 10-20 "bullets" before hitting max drawdown, while only needing 10-20 winning trades to pass.
Position Size Formula
For a $100,000 account risking 0.5% ($500) with a 50 pip stop loss on EUR/USD:
Lot Size = $500 ÷ (50 pips × $10/pip) = 1.0 lot
Position Size Calculator
Calculate exact lot sizes for any account size, risk percentage, and stop loss.
4. Daily Trading Plan
Here's the daily routine that gets traders funded:
Pre-Market Analysis (30 min before session)
Check daily/4H charts for bias. Mark key levels. Identify 2-3 potential setups. Check economic calendar for news to avoid.
Session Trading (2-4 hours)
Execute ONLY setups that match your pre-market plan. Maximum 2 trades. If both hit stop loss, you're done for the day.
Post-Session Review (15 min)
Journal your trades. Screenshot entries/exits. Note what worked and what didn't. Track your stats.
Daily Targets
- Conservative: 0.3-0.5% daily (passes in 20-30 trading days)
- Moderate: 0.5-1% daily (passes in 10-20 trading days)
- Aggressive: 1-2% daily (passes in 5-10 trading days, higher risk)
Don't aim for your daily target. Aim for quality trades. Some days have no setups — and that's fine. You have 30 days. Forcing trades is how traders fail.
5. Common Mistakes to Avoid
After analyzing thousands of failed Challenges, these are the top killers:
❌ Overtrading
Taking 5+ trades per day because "I need to hit my target." More trades = more chances to lose. Stick to 1-3 quality setups.
❌ Revenge Trading
After a loss, immediately taking another trade to "make it back." This usually leads to a second loss, then a third, then... you're done.
❌ Moving Stop Losses
Widening your stop to avoid a loss. This increases risk and often leads to bigger losses when the trade does hit stop.
❌ Trading News
Entering positions around high-impact news events. Even if it's not prohibited, the volatility can destroy your account in seconds.
❌ Over-leveraging Near Target
At 8% profit, risking 3% to finish faster. If it doesn't work, you're suddenly at 5% with psychological damage. Stay consistent.
- Does this setup match my trading plan?
- Is my position size correct (0.5-1% risk)?
- Is my R:R at least 1.5:1?
- No high-impact news in the next 2 hours?
- Am I calm and focused (not revenge trading)?
- Do I have fewer than 2 open positions?
6. The Funded Trader Mindset
Technical skills get you to 50%. Mindset gets you funded.
Think Like a Risk Manager
Your job isn't to make money — it's to not lose it. FTMO wants to see that you can protect capital. The profit target is secondary to the drawdown limits.
Embrace Small Wins
A 0.3% day feels boring. But 30 of those = 9% profit with minimal drawdown. Small, consistent wins compound. Home runs usually strike out.
Detach From Outcomes
Any single trade is meaningless. Only the average of 100+ trades matters. A loss isn't failure — it's a data point. Process over outcome.
The 30-Day Marathon
You don't need to pass in 5 days. Or 10 days. You have 30. Use them. A trader who passes on day 28 with 10.5% profit is just as funded as someone who passes on day 3 with 15%.
Trade like you're already funded and managing $100,000 of real money. Would you risk 5% on one trade? Would you revenge trade? This mental shift changes everything.
7. After You Pass
The Verification Phase
After passing the Challenge, you enter Verification with the same rules but only 5% profit target. Use the exact same approach — don't get complacent.
Funded Account
Once you pass Verification, you get a funded account. Same rules apply, but now you're trading real capital and keeping 80-90% of profits.
Scaling Plan
FTMO offers a scaling plan: hit 10% profit over 4 months with consistent trading, and they'll increase your account by 25%. Eventually you can manage up to $400,000.
Payout Schedule
First payout comes 14 days after your first trade on the funded account. After that, you can request payouts every 14 days. 80% profit split, or 90% after scaling.
Frequently Asked Questions
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