As a trader, one of the biggest challenges you may face is passing the FTMO Challenge. This is a program that allows traders to prove their skills and get funded by a professional trading firm. However, passing this challenge can be difficult, especially if you are new to trading or have limited experience.
Fortunately, there is a simple money management system that can help you pass the FTMO Challenge with just two trades. In this blog post, I will share this system with you and explain how it works. If you would like to learn more, check out this course I have created.
How to Pass the FTMO Challenge: Risk Reward Ratio 1:3
The first step in this system is to use a risk-reward ratio of 1:3. This means that for every trade you make, you should risk 1% of your account and target 3% of your account. For example, if you have a $10,000 account, you should risk $100 and target $300.
To achieve this, you need to set your take profit three times bigger than your stop loss. This way, even if you lose a trade, your losses will be limited to 1% of your account, while your gains can be up to 3% of your account.
Risk Reward Ratio 1:3, Risking 4%
The second step in this system is to use a risk-reward ratio of 1:3 again. But this time, you should risk 4% of your account and target 12% of your account. For example, if you have a $10,000 account, you should risk $400 and target $1,200.
This step involves reinvesting your profits from the first trade into the second trade. This way, you are still risking 4% of your account, but your potential gains are now up to 12% of your account.
How to Pass the FTMO Challenge: What Happens If You Lose?
If you lose a trade, you should not worry. You can move on to the next trade and try again. However, if you lose 10 consecutive trades, you will lose 10% of your account and fail the FTMO Challenge.
In this case, you should reevaluate your trading strategy and make some changes. You can use other proven strategies and manage your money wisely to avoid consecutive losses.
Risk Reward Ratio 1:2
If you cannot achieve a risk reward ratio of 1:3, you can use a risk reward ratio of 1:2 instead. This means that for every trade you make, you should risk 1% of your account and target 2% of your account.
How to Pass the FTMO Challenge: Conclusion
Passing the FTMO Challenge can be challenging. But with the right money management system, you can increase your chances of success. This simple system involves using a risk reward ratio of 1:3 for the first trade. Then, 1:3 again for the second trade, risking 4% of your account and targeting 12% of your account.
Remember, trading involves risk, and you should only invest money you can afford to lose. If you want to learn more about this system and other trading strategies, consider checking out a course like the one mentioned in this post. Good luck and happy trading!
And if you want to learn more details, check out this course. You will see live examples and you will have a ready-to-use Robot to help you pass FTMO challenges.
Passing the FTMO Challenge can be challenging. But with the right money management system, you can increase your chances of success. This simple system involves using a risk reward ratio of 1:3 for the first trade.Then, 1:3 again for the second trade, risking 4% of your account and targeting 12% of your account.
There is estimated to be a 90% fail rate of traders that take the FTMO challenge. The reason behind this is due to traders chasing the profit target with a time restriction in place. A trader doesnt know when a winning streak might occur, or when they may take a string of drawdowns.
A trading plan that is sufficiently tested is a great start, but if the trader is not disciplined enough, it is very easy to lose the grip with your plan and mistakes and losses will inevitably come.
How to Pass the FTMO Challenge: Risk Reward Ratio 1:3. The first step in this system is to use a risk-reward ratio of 1:3. This means that for every trade you make, you should risk 1% of your account and target 3% of your account. For example, if you have a $10,000 account, you should risk $100 and target $300.
Besides the standard eligibility conditions, you should not have any past or prevailing conflict of interest with FTMO, or engagement in the Forbidden Trading Practices, as laid out in the Terms & Conditions (clause 5.4).
Studies have shown that around 4 out of 10 people pass the first stages of any Prop Firm Challenge, and 2 out of the 4 make it through to get a Funded Account. But only 1 person ends up getting paid.
With the right preparation, realistic goals, risk management, and focus, you can successfully navigate this test and secure your place in the trading community. Keep in mind that success takes time, and don't be discouraged if you don't hit your goals right away.
Many traders fail the challenge because they try to meet the profit target too quickly and end up taking unnecessary risks. Remember, the prop firm is looking for traders who can consistently make profits over an extended period. Take your time to analyze the market and only take trades that align with your strategy.
During the FTMO Challenge & Verification, you can ignore the rule of not trading in the window of 2 mins before to 2 minutes after the specific releases. We don't enforce it as we want to make it easier for you to pass the evaluation process.
FTMO (Funded Traders Management Online) is one of the largest and most well-known prop firms in the industry. Based in the Czech Republic, they have funded over 12,000 traders with over $350 million since 2017. FTMO offers various account sizes for Forex and stock indices with no time limits to complete.
Trade with the trend: Follow the market's direction. Do not trade every day: Only trade when the market conditions are favorable. Follow a trading plan: Stick to your strategy without deviating based on emotions. Never average down: Avoid adding to a losing position.
Dariusz from the USA exceeded everyone's expectations and made his dreams come true. As our FTMO Trader with a maximum allocation, he beat the previous record payout of $500,180 thanks to his profit of $1,206,225, the biggest payout in the industry!
If you meet the conditions of our Scaling Plan, not only do we increase the balance of your FTMO Account by 25%, but you will be entitled to a 90% payout. If you prefer to keep your Profit Split on account to grow and accordingly build up your balance and drawdown buffer, you can do so.
Being able to pass this challenge and verification is not an easy task. I believe about 90% of traders fail it. One thing the Challenge and Verification have done for me is it made me a more disciplined trader overall.
How much should we be risking per one trade? In most textbooks and online education programs, we can learn that we should not be risking more than 2% per one trade. Although the answer to this is more complicated, let's start by saying that 2% risk per trade is a good base to start with.
The article from Lux Trading Firm provides slightly different results. According to it, 4% of traders, on average, pass prop firm challenges. But only 1% of traders kept their funded accounts for a reasonable amount of time.
You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account)
Hobby: Reading, Ice skating, Foraging, BASE jumping, Hiking, Skateboarding, Kayaking
Introduction: My name is Cheryll Lueilwitz, I am a sparkling, clean, super, lucky, joyous, outstanding, lucky person who loves writing and wants to share my knowledge and understanding with you.
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