Learn FTMO Challenge
— The Data-Driven Guide.
A math-driven guide to passing the FTMO evaluation without gambling your registration fee.
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.
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.
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.
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.
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.
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.
Deepen Your Quantitative Edge
professional-grade Curriculum
Ground Zero
Foundations of risk, market mechanics, and the survivor mindset.
2 weeksChart Reader
Master price action, liquidity cycles, and technical intuition.
4 weeksStrategist
Developing your edge with high-probability professional setups.
4 weeksRisk Manager
Scaling positions, managing drawdown, and professional sizing.
OngoingMost online guides for "FTMO Challenge" are designed to sell you indicators or signal groups. At Drawdown, we teach strategy and discipline. If a guide promises "guaranteed" returns or "100% win rates," it is a scam. Period.
Common Questions on FTMO Challenge
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.