How to pass
the FTMO Challenge?

Understanding the Trading Objectives of the FTMO Challenge may be a challenge in itself.
Learn the rules on this page in detail and end the struggle once and for all.

FTMO Challenge
Rules and Objectives:

Modern prop trading is legitimate, and evaluation programs are growing in popularity. FTMO, a pioneer in the simulated trading industry, sets the standard with its Evaluation Process rules. If you’re curious about passing the FTMO Challenge and learning the rules, keep reading.

The Trading Objectives in the Evaluation Process focus on helping traders improve their risk management skills and advance their trading journey.

Profit Target: 10 %

What kind of a challenge would it be if there was no target? You must make 10% of the initial balance in the FTMO Challenge and 5% in the Verification.

These are the core rules of the Evaluation Process. If you fail to meet one of the Trading Objectives, unfortunately, you will fail your FTMO Challenge. This is why we always promote trying the Evaluation Process if you are fully ready. On the other hand, if you manage to pass the Evaluation Process, receive the FTMO Account, and reach the first reward from such an account, we will refund you the cost of the FTMO Challenge along with the reward.

Minimum Trading Days: 4

The minimum trading days in the Evaluation Process (FTMO Challenge and Verification) are 4 days. On each of these days, at least one position must be initiated. A trading day is characterised as any day during which at least one trade is conducted. If a trade spans multiple days, only the day when the trade is initiated is counted as a trading day. Lastly, the execution of a trade does not have to be consecutive.

Maximum Daily Loss: 5 %

This trading objective is the first risk management rule in the Evaluation Process. It can be considered the daily account stop loss where traders are expected to refrain from trading once reached. By default, the maximum daily loss is always 5% of the initial balance of the account. For example: In the $10K FTMO Challenge account, the maximum daily loss is always $500. In the $100K FTMO Challenge account, it is $5000.

To calculate the maximum daily loss and avoid exceeding this rule, traders should always keep in mind that it consists of the sum of results from closed positions and the sum of current floating results of open positions.

In case you hold positions for multiple days or weeks, and have a couple of trades here and there along the timespan, it is important to remember that the maximum daily loss is measured from the starting midnight balance of your account on a daily basis. In other words, at midnight Prague Time – CE(S)T, the system will recognize the balance value of the account and from this value, you are not allowed to exceed $500 or $5000 respectively, inclusive of the sum of results from closed positions and the sum of current floating results of open positions.

Maximum Loss: 10 %

Maximum loss can be considered as the account stop-out. The amount that you are not allowed to exceed is 10% of the initial balance, inclusive of the sum of results from open as well as closed positions. For example: In a $10K FTMO Challenge account, you cannot exceed $1000 in losses.

What trading strategies can I use?

As you deploy your own strategy, keep in mind that, as a rule of thumb, it should meet at least these basic conditions:

First Condition First Condition

The strategy must be replicable, and the execution must be according to the conditions of a real market.

Second Condition Second Condition

Strategic position sizing and risk management. For inspiration see:
https://ftmo.com/en/how-much-should-you-risk-on-one-trade/

Final Recommendation Final Recommendation

If you think your strategy is legitimate, you can test it on our Free Trial accounts, or discuss it with us at [email protected].

Market volatility and liquidity play a pivotal role in the execution. We will provide trading accounts in a simulated environment throughout the Evaluation Process, which is why you should avoid executing trades 2 minutes before and 2 minutes after the release of significant macroeconomic news as markets can be unpredictable.

Frequently Asked Questions

Have more questions? Visit the FAQs.

Need more tips on how to pass the FTMO challenge? Visit our blog and FTMO Academy for advice on trading strategies, risk management, plan preparation, and much more!

Can I trade using an EA?

Expert Advisors (EA) or robot trading is also allowed on FTMO platforms; however, if you are using third-party software, make sure that the strategy or the same EA is not being used by other traders as there is a Maximum Capital Allocation of $400K per client or per strategy.

Example of a $10K FTMO Challenge account

Maximum loss can be considered as the account stop-out. The amount that you are not allowed to exceed is 10% of the initial balance, inclusive of the sum of results from open as well as closed positions. For example: In a $10K FTMO Challenge account, you cannot exceed $1000 in losses. Maximum loss can be considered as the account stop-out. The amount that you are not allowed to exceed is 10% of the initial balance, inclusive of the sum of results from open as well as closed positions.

Holding trades overnight?

In the FTMO Challenge or Verification stages, traders can keep positions open overnight and over weekends. However, once traders become FTMO Traders with an FTMO Account, they must close positions just before weekend market closures or if rollover lasts longer than 2 hours. Traders are required to respect market timings, as different asset classes have varying trading hours.

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