What happens when a market leader in prop trading replaces his unpopular Trading Objectives with something much better? You wanted it, so we gave it to you. The unlimited trading period is here!
The 30 or 60 calendar days to complete the Evaluation Process are gone. Free repeats and 14-day extensions are also no longer needed because traders trying an FTMO Challenge and a Verification don't have to watch whether they can make 10% in 30 days or 5% in 60 days.
We can declare with a clear conscience that the biggest obstacle for conservative traders who had problems due to increasing their positions to meet the Profit Target listed in the Trading Objectives is in the past. What does this new change mean for traders?
Simply put, for many traders, some of the stress they had when trading with a fixed trading period will be removed. Making money in Forex is generally not easy and achieving a 10% return in one month can already be a chore for many traders. In an open-ended trading period, there is no need to rush into trades, it is much easier to think about position sizes, wait for the right time to enter, and then let the trades do their work.
Beware of swaps!
Forex trading is particularly suitable for intraday and short-term traders due to the use of leverage and the existence of swaps, and the classic "buy and hold" strategy does not work well for trading leveraged products. In fact, a trader holding one instrument for several days can lose several percent of his potential profit just due to negative swaps. When a position is in a loss, it is compounded by swaps. In this situation, it is necessary to keep in mind that despite the set Stop Losses, such a long-term position, in which swaps start to play an important role, may still result in a bigger loss than the trader planned. In the worst case scenario, by failing to meet one of the loss limits (the Maximum Loss or the Maximum Daily Loss).
If you trade and accidentally leave your account inactive for a few weeks, we will contact you to make sure the account is not sitting unused on our server, taking up space. Our traders can also request a so-called "freeze", i.e. a pause, of an account, especially in case of planned longer inactivity, for example, a holiday.
An unlimited trading period does not mean that we support speculators who do not want to trade on their simulated funded trading accounts. We want to provide FTMO Accounts to traders who know how to trade but don't have the resources to do it meaningfully. We like active traders who trade smartly, have a clear plan and strategy, and are able to follow the rules of money management and risk management.
Please note that trading without a time limit on an FTMO Challenge and Verification is only possible for newly purchased accounts made after the announcement of the campaign, i.e. July 13, 11 am CEST. Please note that orders created before the launch of the campaign and the rules on their accounts as well as on the subsequent Verifications for these orders, as well as Free Repeats, cannot be changed in any way and the rules remain the same as before and according to the public terms and conditions in force at that time.
FAQs
Prop firms with no time limit, as the name suggests, do not impose any specific time constraints on their traders. This means that traders are free to hold positions for as long as they deem necessary, whether it's for a few minutes, hours, days, or even weeks.
What is the 3-5-7 rule in trading? ›
A risk management principle known as the “3-5-7” rule in trading advises diversifying one's financial holdings to reduce risk. The 3% rule states that you should never risk more than 3% of your whole trading capital on a single deal.
What is the 5 3 1 trading strategy? ›
The 5-3-1 trading strategy designates you should focus on only five major currency pairs. The pairs you choose should focus on one or two major currencies you're most familiar with. For example, if you live in Australia, you may choose AUD/USD, AUD/NZD, EUR/AUD, GBP/AUD, and AUD/JPY.
What is the 2 minute rule in FTMO? ›
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.
Can you make a living with prop trading? ›
Also known as “prop trading,” it offers higher earnings potential much earlier in your career than jobs like investment banking or private equity. It's arguably the most merit-based industry within finance: if you make millions of dollars for your firm, you'll earn some percentage of it.
What are the best prop firms without time limit? ›
Best Prop Firms With No Time Limit
- Quick Look: Best No Time Limit Prop Firms. ...
- Best for New or Aspiring Traders: Apex Trader Funding. ...
- Best for Experienced Traders: FundedNext. ...
- Best for Forex Trading: The 5ers. ...
- Best for Stock Traders: Trade The Pool. ...
- Best for Aggressive Traders: FTMO. ...
- Capital and Profit Split. ...
- Trading Rules.
The strategy is based on:
Portfolio management with 70% hedge and 30% spot delivery. Option to leave the trade mandate to the portfolio manager. The portfolio trades include purchasing and selling although with limited trading activity.
What is the simplest most profitable trading strategy? ›
One of the simplest and most widely known fundamental strategies is value investing. This strategy involves identifying undervalued assets based on their intrinsic value and holding onto them until the market recognizes their true worth.
What is the 1-2-3 turnaround trade? ›
The 123-chart pattern is a three-wave formation, where every move reaches a pivot point. This is where the name of the pattern comes from, the 1-2-3 pivot points. 123 pattern works in both directions. In the first case, a bullish trend turns into a bearish one.
Did FTMO ban US traders? ›
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.
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.
Can you pass FTMO in one day? ›
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.
What happens if you lose money prop trading? ›
Proprietary trading firms often provide evaluation accounts where you prove your trading skills. Usually, you pay a one-time fee to enter this “challenge.” If you lose money during this evaluation, you won't owe anything beyond the initial fee.
Why is prop trading illegal? ›
The Volcker Rule is one of the more controversial pieces of legislation to emerge from the financial crisis. Attached to the Dodd-Frank Act, the rule was intended to limit banks' ability to make speculative investments that do not benefit their customers.
What is the time limit for the funded trader? ›
Challenge Time Limit
The Standard Challenge consists of a two-phased evaluation process where a trader has unlimited trading days to complete both phases of the challenge.
Why is late trading illegal? ›
Late trading violates the federal securities laws concerning the price at which mutual fund shares must be bought or redeemed and defrauds innocent investors in those mutual funds by giving to the late trader an advantage not available to other investors.
