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.
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.
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.
The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.
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.
There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. As soon as all the Trading Objectives of your FTMO Challenge are met and your results are reviewed, you can proceed to the Verification phase. The minimum time to complete an FTMO Challenge is 4 trading days.
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)
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.
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!
In conclusion, FTMO is a reputable proprietary trading firm that pays out profits to its traders as promised. The company has a transparent and reliable payout process, and numerous positive reviews from satisfied traders attest to this.
The Profit Split on an FTMO Account is done on a monthly basis by default, with the option to place a payout on-demand after a period of 14 calendar days from the first placed trade on the account.
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.
If you then feel confident of passing the Evaluation and you would benefit from more capital, I would certainly recommend taking the FTMO Evaluation Process to become one of their traders! Also BE PATIENT! It may take you years (it takes most years) to become consistently profitable, but it is all worth it.
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.
When you lose an FTMO challenge, you won't actually be losing something except for the fee amount that you paid for the challenge. However, you won't be able to continue with the challenge and your eligibility would be lost. What leverage is FTMO?
In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.
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. While this result is not nearly as bad as the one discussed earlier, it still looks bleak for prospective prop traders. But why is the percentage of failure so high?
FTMO has various benefits that new traders can leverage to learn and become a pro. However, you'll only start earning after you prove you are disciplined and can manage your given amount carefully.
You don't need to score any minimum profit to receive a Profit Split, only just enough to cover the transaction fees* Whatever amount of profit you generate, you are entitled to withdraw 80% of it.
Introduction: My name is Jonah Leffler, I am a determined, faithful, outstanding, inexpensive, cheerful, determined, smiling person who loves writing and wants to share my knowledge and understanding with you.
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