What Is the FTMO Challenge?
The FTMO Challenge is the evaluation process run by the world's leading prop firm. To earn a funded account, traders must demonstrate consistency, risk control, and discipline across two phases. Understanding the rules and tracking every trade is the first step to passing the FTMO Challenge.
Phase 1: FTMO Challenge
In the first phase, the goal is to reach 10% profit without violating any drawdown rules. The limits are:
- Maximum daily loss: 5% of initial balance
- Maximum total loss: 10% of initial balance
- Minimum trading days: 4 days
The deadline is 30 calendar days, but most approved traders complete it in 2 to 3 weeks by trading consistently.
Phase 2: FTMO Verification
In the verification phase, the profit target drops to 5%, but the drawdown limits remain the same. This phase is designed to prove that Phase 1 was not luck. Trade with the same position size and the same risk management approach.
Strategies to Avoid Drawdown Violations
The biggest mistake traders make is not monitoring drawdown in real time. Calculate how much you can lose on any given day before opening a position. If the market has already moved 2% against you, reduce position size or close out for the day.
Why Trade Logging Matters
Traders who pass the FTMO Challenge on the first try share one habit: they log every trade. With ForexTracker, you track your live drawdown, profit factor, and win rate exactly the way FTMO demands. Eliminate surprises — know your standing before you open the next trade.
Risk Management: The Key to Success
Risk no more than 0.5% to 1% per trade. At 1% risk per trade with a reasonable stop, you can take 5 consecutive losses and still be within the 5% daily loss limit. Traders who risk 2% or more per trade typically blow through the drawdown limit within the first few days.
Consistency vs. Aggressiveness
FTMO rewards consistency. A trader who earns +2% per week reliably is far safer than one who tries to make 10% in two days. Set a realistic daily target — between 0.5% and 1% — and stop once you hit it.
Most Common FTMO Challenge Mistakes
- Increasing lot size after a winning streak
- Trading news events without proper risk controls
- Not logging trades and losing track of drawdown
- Attempting to recover losses with revenge trades
- Ignoring the minimum trading days requirement
Essential Tools for the Challenge
Beyond a solid strategy, you need tools that show your performance in real time. ForexTracker was built specifically for prop firm traders: track your drawdown, monitor your equity curve, and spot patterns in your trades before they cost you the account.
Start monitoring your FTMO metrics for free. Visit app.forextracker.com.br and log your first trade today.
