FTMO: Get FUNDED for trading (2024)

Mohnish Isaac Kariappa

#CoinDCXpathbreaker

This is purely an educational article written to educate my readers. I am not associated with FTMO nor do I have any affiliate links in this article.

In this guide you will find the most important things to take into account when trying to attempting an FTMO Swing Funding Challenge. FTMO is a Proprietary Firm that provides retail traders with funding with different account balances based on a challenge that has a number of goals to accomplish.

This is the most legit and trustworthy funding proprietary firm amongst many others, since I have seen proof of payouts with traders and also it offers a wide range of trading assets.

Whats in it for FTMO?

The main goal of FTMO is to find the best traders worldwide, but we have to be well-aware of the fact, that even if FTMO is supporting you in your journey as a trader, they also have their own interests in mind, since one of their main source of income comes from the traders that pay for the initial challenge and don’t qualify for the next round.

So this brings us to our next topic — the FTMO challenge.

The challenge has been designed for you to not being able to succeed at it, at least not that easily. I am not a pessimist…hear me out: This may sound as a deterrent, but the important thing is that the challenge is not IMPOSSIBLE to do it.

A trader will just have to follow very strict risk management parameters, which will allow you to get a better result and finally getting funded.

In the guide below, I will cover about how I would attempt to pass this trading challenge, if at all I do plan to take the challenge.

The Challenge

P.S- Even though FTMO provides for a paid challenge, do understand that your fees will be forfeited if you fail to pass the challenge. My personal advice would be to take the Free Challenge which the platform offers and see if its a good fit for your style of trading.

Diving in deeper — there are two types of challenge with FTMO: Normal Trading and Swing Trading.

The normal challenge allows traders to open positions with upto 1:100 leverage, that means a straight 100x , while the swing trading challenge allows trader to open position with only upto 1:30 at any given time, that means a 30x leverage. (This will be more than necessary to open positional size trades during the challenge as normally novice traders get euphoric by the 1:100 leverage).

I would any-day advice any trader to undertake the Swing Challenge because of the lesser restrictions when trading, additionally we also would not want to lose the challenge just because of a position getting stopped out because of extreme volatility.

How to register:

Create an FTMO account HERE
If you want to try the paid challenge — Pay for the challenge, whose fees you are comfortable risking
Select the FTMO | Swing Challenge

The FTMO challenge has been segregated into 4 phases:

Evaluation Process
FTMO Challenge
Verification
Funded Trader

The challenge has 5 account size tiers with their own respective fees. They are as follow:

$10,000 account funding- Fees $167.16
$25,000 account funding- Fees $269.61
$50,000 account funding- Fees $372.07
$100,000 account funding- Fees $582.36
$200,000 account funding- Fees $1,164.73

…

Rules of the Game:

30 Days Trading Period

1. This means that as soon as you execute your first trade on the platform, the challenge will begin and you will have 30 days to complete all the objectives.

Minimum Trading Days

1. There could be a scenario where you complete the challenge within the first week or before the completion of the 30 days trading period. To avoid this, FTMO requires all participating traders to have 10 days of active trading as requirement for passing the evaluation

2. You will be required to open trades on 10 different calendar days.

3. If you achieve the set Profit Target before the 10 days, then you can open smaller positions in the remaining 10 days just to be active.

Maximum Daily Loss

The Maximum Daily loss limit within the challenge is a 5% loss of the initial value of the account.
So if you choose a $10,000 account, you will only be allowed to lose $500 in a single day
This is applicable for both the Realised as well as Unrealised loss on the account. So we have to take into consideration overall account Equity rather than just the floating balance.
This Daily Loss will auto-reset based on the CEST Timezone and will start at 00:00:01 CEST and end at 23:59:59 CEST (Shoutout to my friend Dhruv Vashist, who took the trouble and explained this to me)

Maximum Loss

The Maximum loss allowed on the account is 10% of the initial value of the account
So if you choose a $100,000 account you will have a breathing space of only $10,000 during the whole challenge.
This again counts against for both Realized and Unrealized losses
The entire equity of the entire trading portfolio must not drop below 90% of the initial account balance. The FTMO Challenge with an account balance of $50,000 — means that the accounts lowest possible balance at any give time cannot fall below $45,000.

Profit Target

The profit target for the account is 10%, irrespective of the account funding size
So if you choose a $100,000 funding account you will need to make $10,000 in realised profit
This only remains valid if the profit goal is reached and the trader closes all their open-positions before Daily Close. The account has to have Realised Profit.

Refundable Fee

When a trader passes both the Challenge& Verification, the platform will reimbursed the fees with the first profit split

What kind of Verification?

The verification process is done to confirm to FTMO that the trader who successfully passed the challenge did not just get lucky during the challenge phase.

So basically what happens here is that FTMO will give the trader another funded account to start trading from the beginning with a different set of rules this time around…

60 Days Trading Period

A trader will now get 60 days to achieve a 5% Profit Target on the entire funding equity
So, if the trader chooses a $50,000 account, they will need to make a profit of $2,500 in realised profit

Other Rules in Verification Stage

Every other rule remains unchanged

Final Onboarding & Funding

Once a trader reaches this stage, they will have to follow FTMO instructions in order to fill a compliance form to accept terms and conditions of the company

The qualifying trader will also start with a 80:20 profit split (Trader gets 80% of the profit generated & FTMO keeps 20%)
There is no set Profit target to be eligible for a payout, but a trade will have to have consistent results. Especially with the Risk Management Rules like — Maximum Loss & Maximum Daily Loss.
The Profit-Split on the FTMO Account will be 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 (Again a shoutout to Dhruv for helping me with this information)

The payouts are processed either through Bank Transfer or Crypto, depending on the choice of the trader.

Overall, I love the idea of a trading challenge that pushes you over-the-edge. Its a super neat tool of you want to test out your skills with a large sum of capital without really losing much.

let me know in the comments if you would be interested in taking up such a challenge.

…

A huge SHOUTOUT to CoinDCX for giving me this opportunity to write such a detailed report and be a part of the #CoinDCXpathbreaker program, enabling me to share such knowledge with everyone in the crypto space.

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FTMO: Get FUNDED for trading (2024)

Table of Contents:

The Challenge

Rules of the Game:

What kind of Verification?

Final Onboarding & Funding