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Learn How to Pass an FTMO Challenge — The Honest Guide — The Honest Guide.

A math-driven guide to passing the FTMO evaluation without gambling your registration fee.

Difficulty:Advanced
Time to Learn:3-6 months
Risk Level:High

FTMO is the industry benchmark for prop firm capital. But passing requires strict compliance with daily drawdowns and consistency rules. Learn the conservative sizing playbook to pass Phase 1 and Phase 2.

The Honest Reality

FTMO makes most of its money from failed challenge fees, not profit splits. The rules are designed to exploit retail greed. If you try to pass in 48 hours, you are gambling. Passing requires a multi-week, disciplined process.

// WHAT YOU'LL LEARN

  1. 01.The Toughest Exam in Retail Trading
  2. 02.The Midnight Drawdown Rule
  3. 03.Sizing Down to Survive
  4. 04.Consistency and News Trading Rules

1. The Toughest Exam in Retail Trading

FTMO offers funded accounts up to $200,000. However, the evaluation has a 90% failure rate. This is not because the targets are impossible, but because retail traders do not treat the challenge as a risk management test. The challenge is designed to filter out gamblers.

2. The Midnight Drawdown Rule

FTMO calculates daily drawdown (5%) based on your equity or balance at midnight server time (CE(S)T). If you hold swing trades in profit at midnight, your daily stop-out limit moves up. If the market retraces the next day, you can breach the limit even if your account is in net profit.

3. Sizing Down to Survive

To hit the 10% target in Phase 1, you do not need 3% risk per trade. A normal losing streak will breach your daily limit. Risk exactly 0.5% of starting equity per trade. This gives you a 10-trade buffer on daily limits, allowing you to survive volatility waves.

4. Consistency and News Trading Rules

FTMO restricts trading during high-impact news releases for funded accounts. Holding trades through Tier-1 data like NFP or CPI can trigger immediate breaches. You must audit the economic calendar daily and close intraday trades before releases.

// THE DRAWDOWN PATH

Institutional-Grade Curriculum

Start Phase 1 Free
PHASE 01

Ground Zero

Foundations of risk, market mechanics, and the survivor mindset.

2 weeks
PHASE 02

Chart Reader

Master price action, liquidity cycles, and technical intuition.

4 weeks
PHASE 03

Strategist

Developing your edge with high-probability institutional setups.

4 weeks
PHASE 04

Risk Manager

Scaling positions, managing drawdown, and institutional sizing.

Ongoing

Crucial Warning: The Guru Trap

Most online guides for "How to Pass an FTMO Challenge — The Honest Guide" are designed to sell you indicators or signal groups. At Drawdown, we teach you strategy and discipline. If a guide promises "guaranteed" returns or "100% win rates," it is a scam. Period.

Common Questions.

What is the daily loss limit on FTMO?

The daily loss limit is 5% of the starting balance of the day, reset at midnight CE(S)T. It includes both closed losses and open floating equity drawdown.

How long do I have to pass the FTMO challenge?

FTMO has no time limits. You can take as long as you need to achieve the profit target, which reduces the pressure to over-leverage.

Can I trade news on FTMO?

News trading is permitted during evaluation phases, but heavily restricted on funded (FTMO Account) stages, where you cannot execute trades 2 minutes before and after Tier-1 news.

What is the profit split on FTMO?

Successful funded traders receive an 80% split of profits, which can be scaled up to 90% through their enterprise growth scaling plan.

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