Before we allow you to trade our company’s capital we need to make sure that you can manage risk. For this reason, we developed the Trading Objectives. By meeting the Trading Objectives, you prove that you are a disciplined and profitable trader. Your trading style is completely up to you, we don’t set any limits on instruments or position size you trade.
Detailed explanation of the Trading Objectives
Minimum Trading Days
To meet this objective you must trade at least for 10 days during the testing period. At least one position must be opened in each of these days.
- A trading day means a day when at least one trade is executed.
- If a trade is held over multiple days, the day when the trade was executed is considered as the trading day.
In order to become a FTMO Trader, you must reach at least 50% of positive days compared to the number of negative days, where a positive day is considered to be such a day where the value of the account balance is higher at 23:59:59 CE(S)T than it was on the same day at 0:00:01 CE(S)T.
Maximum Daily Loss
Maximum Daily Loss is set to 5% (10% in the Aggressive level) of the initial balance and does not change. During the day (i.e. from 0:00 CE(S)T to 23:59 CE(S)T.), the account balance must not be reduced by the value of 5% (10%) of the initial capital. The total reduction of the account value is the sum of results on closed and open positions, including commissions and swaps.
Challenge 10 – Example Situation: Trader realized a loss of 450 USD during one day. The trader also has a loss of 100 USD in an open position. The sum of losses at the given time amounts to 550 USD, which means a reduction of the account value exceeds 500 USD etc.
Be careful, the Maximum Daily Loss resets at midnight! Let´s say that in one day you had a profit of 600 USD. On the same day you have an open position with a loss of 800 USD. On this day, the maximum daily loss is not violated. The Current daily loss is 200 USD (600 closed profit – 800 open position). However, if you keep the position with the open loss of 800 USD open after midnight, the daily loss limit will be violated.
The value of the initial capital must not fall below 90% (80% in the Aggressive level) of the initial account balance both for open and closed positions, including commissions and swaps.
For example: If you trade Challenge 10, the minimum account equity which must not be hit is 9,000 USD as the Maximum Loss is 1,000 USD.
The Profit target is set to 10% (20% in the Aggressive level) of the initial balance. Profit target means that a trader reaches a profit of at least 10% of the initial account balance in the sum of closed positions on the assigned trading account in 30 days.
For example: If you trade Challenge 10, your profit target is 1,000 USD.
Note that we will provide you with a new Challenge for free if you meet all the Trading Objectives except for the Profit Target. In order to receive the new Challenge for free, your account balance must be positive at the end of the time period.
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