Paul Nickol · Follow
6 min read · Oct 24, 2023
If you’re an aspiring forex trader, you’ve probably heard of FTMO and the opportunities it offers to help traders grow their careers. One aspect that stands out about FTMO is their unique funding program, the FTMO Challenge. This challenge is a significant stepping stone to becoming a successful trader.
In this blog post, we will delve into what FTMO is, the significance of the FTMO Challenge, and most importantly, the strategies you can employ to pass your challenge successfully.
FTMO, or Forex Traders Money Managers, is a Czech-based company that provides funding to forex traders worldwide. The purpose of the company is to discover talented traders and provide them with significant capital to trade. The benefits for traders are numerous, including not risking their own money while trading, receiving 70% of profits made, and having access to a vast community of traders.
The FTMO Challenge is a two-step evaluation process that traders need to pass to become an FTMO Trader. This challenge tests the ability of a trader to make profitable trades while adhering to specific risk parameters. It’s not only about making profits but also about managing losses effectively.
- Founded in 2014 by Otakar Suffner, FTMO has quickly risen through the ranks to become a reliable prop trading firm based in the heart of Europe, Prague, Czech Republic.
- The journey from its inception to rebranding in 2017 portrays a firm committed to continuous growth and adaptation to the dynamic trading ecosystem.
- The primary goal of FTMO is clear cut — to identify and nurture profitable traders by providing them with training and funded accounts.
- The firm holds a torch for aspiring traders, lighting the way towards profitable trading through a well-structured support system.
Like any challenge, preparation is key. The more prepared you are, the higher your chances of passing the FTMO Challenge. To be well-equipped for this challenge, you need to have a deep understanding of forex trading, including how to analyze market trends, create a trading strategy, and manage risk.
Studying educational resources available on the FTMO website is an excellent place to start. Engaging in demo trading can also be quite beneficial as it gives you a feel of trading without risking real money. Additionally, networking with other traders can provide valuable insights and tips.
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Passing the FTMO Challenge requires more than just knowledge. It demands a strategic approach. Here are some strategies that can increase your chances of success:
- Risk Management: Proficient risk management is a cornerstone of successful trading. This involves setting stop losses, not risking more than a specific percentage of your account on a single trade, and diversifying your trades. Managing your risk effectively can help you withstand losses and preserve your trading capital.
- Trading Plan: A well-crafted trading plan guides your trading activities and helps you maintain discipline. It should outline your financial goals, risk tolerance levels, and specific strategies you’ll employ. Following your trading plan diligently can help you avoid impulsive decisions and stay on track towards achieving your goals.
- Technical Analysis: Understanding technical analysis is crucial for making informed trading decisions. This involves analyzing historical price data to predict future price movements. Learning to use technical indicators such as moving averages, RSI, and Bollinger Bands can enhance your trading.
- Trading Psychology: Trading involves intense emotions, especially when money is at stake. However, emotional control is vital for success. Learning to maintain discipline, remain patient, and handle both wins and losses with grace can dramatically improve your trading performance.
- $10,000 — €155
- $25,000 — €250
- $50,000 — €345
- $100,000 — €540
- $200,000 — €1,080
Evaluation Phase One:
- Reach a profit target of 10%.
- Adhere to a 5% maximum daily loss and a 10% maximum loss.
- Minimum of four trading days required.
Evaluation Phase Two:
- Reach a profit target of 5%.
- Same loss limits as phase one.
- Minimum of four trading days required.
Post-Evaluation:
- Awarded a funded account with no profit targets.
- Maintain the 5% maximum daily loss and 10% maximum loss rules.
- First payout 30 days from first position, with an option for a payout on demand after 14 days.
Many traders have successfully passed the FTMO Challenge and are now enjoying the benefits of being an FTMO trader. Their journeys are filled with valuable lessons that can help you navigate your own path.
One common mistake many traders make is overtrading. It’s easy to get carried away by the excitement of trading and end up making unnecessary trades that could lead to losses. Another mistake is neglecting risk management. Always remember that preserving your capital is as important as making profits.
FTMO boasts a range of features tailored to empower traders towards achieving financial success in the trading domain. This section meticulously dissects the vital features that stand as the pillars of FTMO’s offerings.
- With FTMO, traders can kickstart their trading journey with up to $400,000 in trading capital, accompanied by a leverage of 1:100, which significantly magnifies the potential for profits.
- The firm has a generous profit-sharing scheme where traders retain up to 90% of the profits made, establishing a mutually beneficial partnership.
- FTMO opens up a world of trading opportunities with a diverse range of tradeable assets, including:
- Cryptocurrencies
- Fiat currencies
- Forex
- Commodities
- Indices
- The route to becoming an FTMO funded trader involves a two-step evaluation:
- The FTMO Challenge which assesses a trader’s skills and strategy.
- The Verification stage to further evaluate the trader’s consistency and profitability.
- FTMO prioritizes the education and growth of its traders by providing:
- Comprehensive educational resources
- Handy trading tools
- A vibrant supportive community to engage with and learn from1
- A variety of investment avenues are available including forex, commodities, indices, crypto, stocks, and bonds.
- Redemption of profits is facilitated through traditional bank wire transfers, Skrill, or digital currencies, with a monthly Profit Split conducted by the prop firm1.
The blend of substantial trading capital, a vast array of tradeable assets, a thorough evaluation process, and a robust education and support system underline the essence of FTMO. This prop trading firm goes the extra mile to ensure traders are well-equipped to navigate the tumultuous waters of the trading world and come out victorious.
FTMO provides various tools and resources to help you succeed in the challenge. These include educational materials, a demo account, proprietary applications like Account Metrix and Statistic App, and a supportive community of traders. Utilizing these resources can significantly increase your chances of passing the challenge.
- FTMO provides access to a trading psychologist to help traders navigate the emotional aspects of trading, ensuring a balanced psychological approach towards trading activities.
- An innovative scaling plan allows traders to incrementally increase their trading capital based on their performance over a period of four months, facilitating a growth-oriented trading environment.
- Traders have the opportunity for unlimited retries during the evaluation phase, ensuring they have ample chances to qualify for a funded account.
- A flexible payout system that allows traders to receive their share of profits on a bi-weekly basis, enhancing cash flow and financial planning.
- Detailed insights into the two types of evaluation program accounts: normal and aggressive, each designed with distinct evaluation criteria and trading conditions to cater to different trading styles.
- An in-depth look at the scaling plan for normal evaluation program accounts, outlining the criteria for increasing account balance and the progressive stages involved in scaling up trading capital.
Preparing for and passing the FTMO Challenge is no easy feat. It requires time, effort, and a strategic approach. However, with the right mindset and effective strategies, it’s an achievable goal. Remember, the journey to becoming a successful trader is not a sprint but a marathon.
Take your time to understand the market, develop a solid trading plan, manage your risk effectively, and maintain emotional control. With perseverance and determination, you can conquer the FTMO Challenge and take your trading career to new heights. Good luck!
