Understanding the FTMO Challenge
The FTMO Challenge is a two-phase evaluation designed to test your trading skills and risk management discipline. Phase 1 requires a 10% profit target in 30 days, while Phase 2 requires 5% in 60 days.
Step 1: Choose Your Account Size Wisely
Start with the $10K or $25K account. Avoid the temptation of starting with $200K — the pressure of managing larger drawdown limits in absolute terms can be overwhelming for beginners.
Step 2: Risk Management First
Never risk more than 1% of your account per trade. With a $10K account, that means a maximum loss of $100 per position. This keeps you well within the 5% daily drawdown limit.
Step 3: Focus on Quality Over Quantity
You don't need 50 trades per day. Focus on 2-3 high-probability setups. The evaluation has minimum trading day requirements (10 days for Phase 1, 10 days for Phase 2), so pace yourself accordingly.
Common Mistakes to Avoid
- Over-leveraging in the final days
- Revenge trading after a losing day
- Ignoring the daily drawdown rule
- Trading during high-impact news events without a plan
Conclusion
Passing the FTMO Challenge requires patience, discipline, and a solid trading plan. Focus on consistent small gains rather than trying to hit the profit target quickly.