How to pass
the FTMO Challenge?
Understanding the Trading Objectives of the FTMO Challenge may be a challenge in itself.
Learn the rules on this page in detail and end the struggle once and for all.
FTMO Challenge
Rules and Objectives:
Modern prop trading and evaluation programs are growing in popularity. FTMO, a pioneer in the simulated trading industry, sets the standard with its Evaluation Process rules. If you’re curious about passing the FTMO Challenge and learning the rules, keep reading.
The FTMO Evaluation Process is designed to assess a trader’s skill and discipline before being provided an FTMO Rewards Account. It consists of two main stages, FTMO Challenge and Verification.
Here are the rules of the FTMO Challenge:
Minimum Trading Days: 4
The Minimum Trading Days in the Evaluation Process (FTMO Challenge and Verification) are 4 days. On each of these days, at least one position must be initiated. A trading day is characterised as any day during which at least one trade is conducted. If a trade spans multiple days, only the day when the trade is initiated is counted as a trading day. Lastly, the execution of a trade does not have to be consecutive.
Profit Target: 10 %
What kind of a challenge would it be if there was no target? You must make 10% of the initial balance in the FTMO Challenge and 5% in the Verification.
These are the core rules of the Evaluation Process. If you fail to meet one of the Trading Objectives, unfortunately, you will fail your FTMO Challenge. This is why we always promote trying the Evaluation Process if you are fully ready. On the other hand, if you manage to pass the Evaluation Process, receive the FTMO Rewards Account, and reach the first reward from such an account, we will refund you the cost of the FTMO Challenge along with the reward.
For example:
In the $10,000 FTMO Challenge account, the Maximum Daily Loss is always $500.
In the $100,000 FTMO Challenge account, it is $5,000.
To calculate the Maximum Daily Loss and avoid exceeding this rule, traders should always keep in mind that it consists of the sum of results from closed positions and the sum of current floating results of open positions.
In case you hold positions for multiple days or weeks, and have a couple of trades here and there along the timespan, it is important to remember that the Maximum Daily Loss is measured from the starting midnight balance of your account on a daily basis. In other words, at midnight Prague Time – CE(S)T, the system will recognize the balance value of the account and from this value, you are not allowed to exceed $500 or $5,000 respectively, inclusive of the sum of results from closed positions and the sum of current floating results of open positions.
Maximum Daily Loss: 5 %
This trading objective is the first risk management rule in the Evaluation Process. It can be considered the daily account stop loss where traders are expected to refrain from trading once reached. By default, the Maximum Daily Loss is always 5% of the initial balance of the account.
If you exceed your limit for Maximum Daily Loss, it is considered a breach of a basic FTMO Challenge rule, and your FTMO Challenge is considered failed.
Maximum Loss: 10 %
Maximum Loss can be considered as the account stop-out. The amount that you are not allowed to exceed is 10% of the initial balance, inclusive of the sum of results from open as well as closed positions.
For example: In a $10,000 FTMO Challenge account, you cannot exceed $1,000 in losses.
Traders in the Verification stage have a 5% Profit Target and all other rules remain the same as the FTMO Challenge.
Once both stages of the FTMO Evaluation Process are successfully completed, the trader becomes an FTMO Verified Prop Trader and receives the FTMO Rewards Account, which is eligible for Rewards, allowing them to trade and earn a share of the virtual profits generated. Access to the Rewards Account is subject to the successful completion of the Identity Verification and consenting of the Signal Provider Agreement.
The cost of the FTMO Challenge is refunded with the first Reward from the FTMO Rewards Account.These are the core rules of the Evaluation Process. If you fail to meet one of the Trading Objectives, unfortunately, you will fail your FTMO Challenge. This is why we always promote trying the Evaluation Process if you are fully ready.
What trading strategies can I use?
As you deploy your own strategy, keep in mind that, as a rule of thumb, it should meet at least these basic conditions:
The strategy must be replicable, and the execution must be according to the conditions of a real market.
At FTMO, we encourage traders to trade responsibly by incorporating practices to ensure long-term success in the markets. Effective risk management and strategic position sizing are key to maintaining consistency and protecting capital.
For inspiration on best practices, see:
How much should you risk on one trade
5 Essential Tips for Your Trading
Follow these proven strategies to increase your chances of passing the Evaluation Process and becoming an FTMO Verified Prop Trader.
Familiarize yourself with all trading objectives including profit targets, maximum loss limits, and drawdown restrictions.
Create a trading plan with clear entry and exit points, risk management parameters, and specific market conditions for trades.
Limit your risk exposure on any single trade to a small portion of your maximal drawdown. Use stop losses and proper position sizing to protect your account.
Focus on consistent performance rather than hitting profit targets quickly. Consistency builds confidence and reliability.
Control your emotions during trading. Avoid revenge trading, overtrading, and making impulsive decisions based on fear or greed.
Frequently Asked Questions
Have more questions? Visit the FAQs. Need more tips on how to pass the FTMO challenge? Visit our FTMO Academy for advice on trading strategies, risk management, plan preparation, and much more!
Expert Advisors (EA) or robot trading is also allowed on FTMO platforms; however, if you are using third-party software, make sure that the strategy or the same EA is not being used by other traders as there is a Maximum Simulated Capital Allocation of $400,000 per client or per strategy.
You can keep positions open overnight and over weekends. There is no requirement to close simulated trades at the end of each day. However, for simulated futures contracts, all positions must be closed before the contract’s expiry. More information here:
