FTMO's Drawdown Rules Explained: Challenge & Funded Trading Account!

FTMO has established itself as a leading platform in the trading industry, offering traders the opportunity to prove their skills and potentially secure funding through Challenge and Funded Account programs.

⭐ RECOMMENDED PROP FIRMS⭐

To ensure a fair and sustainable trading environment, FTMO has implemented drawdown rules that traders must understand and adhere to. In this comprehensive guide, we will delve into the intricacies of FTMO's drawdown rules, explore the Challenge phase, discuss risk management strategies, and shed light on the Funded Account program.

Understanding FTMO's Drawdown Rules:

FTMO's drawdown rules play a vital role in protecting both traders and FTMO's capital. These rules are designed to promote responsible risk management and preserve traders' capital. Let's take a closer look at the key aspects of FTMO's drawdown rules:

The Challenge Phase:
Challenge phase is the first step for traders on their journey to a funded trading account. During this phase, traders are provided with a simulated account and allocated capital by FTMO. It's essential to understand drawdown rules apply even in this initial phase. Traders must adhere to the specified maximum drawdown limit, which varies depending on account size.

Risk Management Strategy:
Successful traders recognize the importance of implementing a robust risk management strategy. FTMO encourages traders to adopt effective risk management practices to mitigate drawdown risks. By setting trade limitations, such as maximum loss per trade, FTMO helps traders manage risk exposure effectively and protect both their capital and FTMO's funds.

Verification Phase and Funded Account:
Once traders successfully complete the Challenge phase and meet all the requirements, they progress to the Verification phase. During this phase, traders trade on a real account using FTMO's capital. The drawdown rules continue to apply, ensuring consistency and adherence to risk management principles.

FTMO vs. My Forex Funds: A Comparison:

It is worth noting that FTMO is often compared to My Forex Funds, another popular funding platform. While both platforms offer funding opportunities, FTMO stands out due to its robust risk management strategies, including drawdown rules. Traders who prioritize risk management and capital preservation often lean towards FTMO for its stringent rules and long-term sustainability.

Benefits of FTMO's Drawdown Rules:

FTMO's drawdown rules provide traders with several benefits:

Capital Protection: drawdown rules prevent excessive losses and protect traders' capital as well as FTMO's funds. This safeguarding allows traders to trade with confidence, knowing that their capital is being preserved.

Consistency and Longevity: By emphasizing risk management and responsible trading practices, FTMO's drawdown rules encourage traders to develop disciplined strategies that prioritize consistency and long-term success.

Funded Account Opportunities: Adhering to FTMO's drawdown rules and successfully completing the Challenge and Verification phases can lead to a funded trading account. This opens doors to larger capital allocations, profit-sharing opportunities, and potential financial independence.

FTMO's drawdown rules are a critical component of their Challenge and Funded Account programs. Rules ensure a fair and sustainable trading environment, emphasizing risk management, capital preservation and disciplined trading practices. By understanding and adhering to FTMO's drawdown rules, traders can position themselves for success, capitalize on funded account opportunities and advance their trading careers. Embrace the challenge, implement effective risk management strategies and let FTMO pave the way to your trading aspirations!

Funded challenges from prop firms like FTMO and My Forex Funds offer traders the opportunity to trade with allocated capital. This provides tips to pass the challenge successfully.

Understanding Funded Challenges: These challenges assess skills, discipline, and risk management. Traders must follow rules and guidelines, demonstrating profitability while managing drawdown and meeting profit targets.

Developing a Strategy: Craft a trading strategy aligned with prop firm guidelines, including risk management and trade size restrictions.

Risk Management: Strictly manage risk per trade and avoid overtrading or excessive risks to preserve capital.

Continuous Learning: Stay updated with news and rules from the prop firm, utilize educational resources and improve trading skills.

Persistence and Patience: Approach the challenge with a long-term mindset, maintaining discipline, and avoiding emotional decision-making.

Success in funded challenges requires planning, discipline and risk management. By understanding the rules, developing a strategy, continuous learning and staying persistent, traders can increase their chances of success.

[GL-GildedLining]

Let me be one of the many comments praising how brilliant your explanations are. You're an excellent teacher, Kevin!

[aliusama-yw]

FTMO has already explained all these drawdown rules, but still you are good thanks Kevin:)

[darylanderson]

Thank you so much for these very clearly explained videos. I'm doing a whole lot of research on funded accounts and honestly your videos are preparing me as well as possible.

[maxwellonyesoh]

The more I watch your videos, the more I see the silver lining. Thanks a lot Kevin, appreciate your content.

[jeffkoh]

Hi Kevin your videos are so well explained. I just passed my FTMO challange and got funded.

Now I am alot clearer to how I can preserve my account. Thanks alot once again!

[jxzkbid]

Hello Kevin just wanted to say the way you explain stuff the clarity, preciseness & you make it so easy to understand, is just a amazing 🤓 you’ve earned yourself a new sub thank you for this invaluable info

[MarlonAhrens-jmmi]

Appreciate your content on FTMO rules. Thank you

[andrecomeau]

“ for prop firm “ I only bet .5 % and if in drawdown over 3 % that is 6 trade !
I drop at .25 % to slow down the bleeding and recover up and ! still in the game .

[wasswacosmas]

Thanks Kevin for the recipe I requested from you

[DesMonDLee]

u explain the exact thing i wanna know before starting an prop acc challenge ! thank you

[jeff_reginio]

very useful channel I liked the way you made it very interactive with situational question ! keep it up and thanks

[yous]

bro I think you're doing an amazing job, thank you so much for all your efforts
keep it up 🔥🔥🔥🔥🔥🔥

[hunterthomson]

Thanks so much for the video, so helpful !

Say i had a 10k account and was at 25k ... if i then lost my daily drawdown £500

Would they then close my account ?

Also does the daily drawdown effect swing accounts also ?

[GlobalTv]

Is ftmo swing account drawdown effected by equity?

[philippedolle]

Thanks for drawing our attention to these potential issues. Another important one is the spread widening at market's roll over time (N.Y. close).

[pip_lordian_Gzzz]

SO FOR FTMO lets say i have 400, 000k account i have a open trade and im up 20 percent on the account which is 80, 000 dollars. I held the trade overnight. Its a new day i have the trade still running. The winning trade i have still open pulls back 5% your telling me my account will still be fine???? Or I loss my account for equity drawdown

[RobbyTheSniper]

Good Humans still exist. great video gee

[M]

Thanks a lot, very precise explination.

[ElijahMusa-mzri]

Hello kevin
Great explanation.

For the 100k account
If i get to 90k

Can i still take a trade?

Since taking a trade automatically takes me below 90k!

Thank you

[fegorokonedo]

Hi, thanks for the video! But I'm confused a little. Please does the minimum equity violation happen immediately the minimum equity is breached during the open trade or the violation happens at the end of the day?