The Ultimate Guide to Navigating the FTMO Evaluation: Avoiding Pitfalls and Maximizing Success
Unveiling the FTMO Evaluation: A Comprehensive Overview
Embarking on the Ftmo evaluation is a transformative journey that demands a thorough understanding of its intricate rules and objectives. This comprehensive guide will illuminate the path to success, empowering you to avoid potential pitfalls and emerge victorious in this rigorous assessment.
Defining the Elusive Term: ‘Loss’
Contrary to popular belief, ‘loss’ extends beyond the mere closure of trades at a deficit. It encompasses the detrimental impact on your account equity, even if subsequent trades ultimately yield profit. This phenomenon, aptly termed ‘drawdown,’ measures the extent of your account’s decline after initiating trades.
Furthermore, the relentless pursuit of profit should not overshadow the significance of swap and commission fees, as they too contribute to the erosion of your account’s value.
Navigating the Temporal Labyrinth: FTMO Trading Days
Time plays a pivotal role in both stages of the Ftmo evaluation. To fulfill the minimum trading requirement, you must engage in at least one trade per day for the specified duration, regardless of consecutive days. It is crucial to note that opening a trade on one day and closing it on the subsequent day counts as a single trading day, with the initiation of the trade defining the day’s designation.
For those who excel in the art of trading, the evaluation may culminate sooner than anticipated. If you achieve the profit target before the time limit expires, you are not obligated to endure the remaining days. For instance, the Verification stage may span a maximum of 60 calendar days, but if you conquer the objectives within 30 days, Ftmo will promptly initiate the process of granting you a funded account.
Deciphering the FTMO Free Trial Rules: A Glimpse into the Prop Trading Realm
The Ftmo free trial serves as a valuable stepping stone, offering a taste of the prop trading experience before committing to a paid evaluation. Within 14 days of your inaugural trade, you are tasked with expanding the account balance by 5%, while adhering to the following constraints:
Unveiling the FTMO Challenge Rules: Embarking on the Path to Success
The Ftmo Challenge marks the first phase of the evaluation, where your trading prowess is put to the test. Over a 30-day period, you must navigate the following rules:
Navigating the FTMO Verification Rules: Proving Your Consistency
The Ftmo Verification stage serves as a testament to your trading consistency, following your success in the Challenge. While the rules are somewhat relaxed, they demand unwavering adherence:
FTMO Normal vs. Aggressive: Tailoring the Evaluation to Your Trading Style
The Ftmo Evaluation offers two distinct modes, Normal and Aggressive, catering to diverse trading preferences. Let us delve into the intricacies of Aggressive mode:
Understanding FTMO Swing Accounts: Embracing Overnight Trading
Ftmo Swing accounts provide the flexibility to hold trades overnight and over weekends, unlike standard Ftmo accounts. However, this privilege is not without its limitations. Standard account holders can also hold positions over weekends by requesting permission from Ftmo before midnight every Wednesday.
Additionally, swing accounts offer slightly different leverage compared to standard accounts: 1:30 for swing accounts and 1:100 for standard accounts.
FTMO Retake Policy: Second Chances and Free Extensions
Breaching any of the Ftmo rules will result in evaluation failure and forfeiture of the evaluation fee. Ftmo does not offer discounts for subsequent attempts, but you are free to purchase another evaluation and try again.
However, if you complete the Challenge without violating any rules and your account remains in profit with all positions closed, you are eligible for a free retake. Furthermore, if you have not exceeded the maximum daily losses and have earned more than 5% of your initial account balance (or 10% in Aggressive Risk mode), you can secure a free Ftmo challenge extension of 14 days.
This extension provides valuable additional time, potentially eliminating the need to assume excessive risk in pursuit of the remaining profit margin. However, it is crucial to activate the extension on the 28th or 29th day of your trading evaluation, as activation is not permitted on the final day (day 30).
Mastering the Art of Risk Management: Avoiding the Perils of Loss
The cornerstone of successful Ftmo evaluation lies in meticulous risk and money management. Vigilantly monitor your position size to prevent inadvertent breaches of loss limits due to drawdown. Remember to account for swap and commission fees, and when initiating new trades, consider the potential losses from existing open positions.
