How to Pass the FTMO Challenge: A Rule-Based Plan

There is no secret strategy for passing the FTMO Challenge. There is a set of rules, and a way of trading that keeps you inside them long enough for your edge to show. This guide turns FTMO's rules into a working plan.

If you have not read the rules yet, start with FTMO Challenge rules explained. Below, we assume you know the basics and focus on what to do with them. For general advice that applies to any firm, see how to pass a prop firm challenge.

Step 1: choose the right model

FTMO offers two evaluations. Pick the one that matches how you trade, not the one that looks fastest.

2-Step: more room, more steps

• 10% target, then 5% in the Verification.
• 5% Maximum Daily Loss and a static 10% Maximum Loss.
• At least 4 trading days per phase.
• Fee refunded with your first reward.

The 2-Step suits traders who have occasional losing streaks. The static floor never moves, so profits build a real cushion.

1-Step: one target, tighter limits

• A single 10% target.
• 3% Maximum Daily Loss and a 10% Maximum Loss that trails your highest end-of-day balance.
• A Best Day rule: your best day must not exceed 50% of total profit.
• Fee not refundable, but a 90% reward split.

The 1-Step suits steady traders with small, consistent days. It punishes one big day as well as one big loss.

Not sure which fits? Our 1-step vs 2-step guide walks through the trade-offs.

Step 2: size every trade to the daily limit

The Maximum Daily Loss is the rule that ends most attempts. Build your risk around it, not around the profit target.

A simple framework:

1. Work out the daily allowance in money. On a 100K 2-Step it is $5,000. On a 100K 1-Step it is $3,000.
2. Set a personal daily stop at about half of that. Stop trading for the day when you hit it.
3. Risk a small fraction of the personal stop per trade, for example a quarter to a half of it.

Illustrative example (100K 2-Step): personal daily stop $2,500. Risk per trade $500 to $1,000, which is 0.5% to 1% of the account. Three or four losers in a row still leave you well clear of the $5,000 limit.

Illustrative example (100K 1-Step): personal daily stop $1,500. Risk per trade $300 to $500. The tighter numbers reflect the 3% limit.

Use the position size calculator to turn that dollar risk into lots for your stop distance.

Step 3: remember equity, swaps and the midnight reset

FTMO measures the daily limit against equity, from your balance at 00:00 CE(S)T. Three habits help:

• Count open losses. A floating loss breaches the limit even if the trade would have recovered. Always trade with a stop-loss.
• Add swaps and commissions. They reduce equity. Holding large positions over midnight adds swap costs to the new day.
• Know your reset time. Convert midnight CE(S)T to your time zone and write it down.

Step 4: plan the target over weeks, not days

Neither FTMO model has a time limit. That is your biggest advantage. Use it.

A 10% target sounds large. Spread over 15 to 20 trading days, it is roughly 0.5% to 0.7% a day on average. That is a pace you can reach with modest risk. Our profit target calculator shows the daily pace for any target and timeframe.

On the 2-Step, the Verification needs only 5%. Many traders fail it by rushing. Keep the same risk you used in phase one, or lower.

Step 5: handle the minimum trading days

On the 2-Step you need at least 4 trading days per phase. FTMO counts a day when you open at least one position.

If you hit the target early, you do not need to keep trading large. Open a small position on the remaining days to meet the count. Taking big trades just to fill the days is a common way to give back a pass.

Step 6: manage the 1-Step Best Day rule

On the 1-Step, your best day must not exceed 50% of total profit (for orders created from 12 October 2026). This is not a breach, but it can delay your pass.

Practical ways to stay inside it:

• Cap your daily profit. If a day reaches about 3% to 4% on a 10% target, consider stopping.
• Track the best day as you go. Divide your best day by total profit after each session.
• If you are over 50%, keep trading small until the total catches up.

The consistency calculator tells you how much more profit you need when one day is too large.

Step 7: protect gains on the 1-Step

The 1-Step Maximum Loss trails your highest end-of-day balance. Every new high raises the floor. A strong start followed by a drawdown leaves you with less room than you might think.

Example (100K): after an end-of-day high of $105,000, your floor is $95,000. Drop back to $97,000 and only $2,000 separates you from failing. Reduce size after a good run, not only after a bad one.

Step 8: practise on the Free Trial first

FTMO offers a free trial account (its site mentions a 14-day Free Trial). Use it to test your platform, your order sizes and your reset-time routine before paying a fee. It will not prove your strategy works, but it will catch setup mistakes.

Mistakes that commonly end FTMO attempts

• Moving risk up after a loss to win it back.
• Holding large positions through high-impact news without a stop.
• Ignoring floating losses near the daily limit.
• Forgetting that a new trading day starts at midnight CE(S)T.
• On the 1-Step, making most of the target in one day.
• Changing strategy halfway through because progress feels slow.

Our article on why traders fail prop firm challenges covers these patterns in more detail.

After you pass

The funded FTMO Account has no profit target. Standard accounts restrict trading around selected news releases and holding over weekends. Swing accounts lift those limits on the 2-Step. You can request your first reward on the 14th day after your first trade on the account.

Know these rules before you pass, so your style still fits the funded account.

Is the FTMO Challenge worth it?

FTMO has operated since 2015 and publishes detailed rules. The 2-Step refund and no time limit lower the pressure. Downsides include euro pricing, a 3% daily limit on the 1-Step, an 80% default split on the 2-Step, and funded-account limits on news and weekend trading. Read our FTMO review for the full picture, and compare it with other firms in our rules database.

FTMO's homepage currently advertises 19% off the 100K FTMO Challenge, applied automatically at checkout.

Rules were checked against FTMO's official pages on 3 November 2026 and can change. Confirm current terms on ftmo.com before you buy. The examples are illustrative, not a promise of results. Many traders who attempt challenges do not pass; trade only with money you can afford to lose. This is educational content, not financial advice. FundedKings may earn a commission if you buy through some links on this site. See our affiliate disclosure.