FTMO Prop Trading Platform - Trade Evaluation Guide

Understanding FTMO Prop Trading

Key aspects of the FTMO prop firm model and evaluation system

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Evaluation Process

The FTMO challenge consists of a two-stage evaluation where prop traders demonstrate their trading skills, risk management, and consistency across multiple trading sessions.

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Account Sizes

FTMO offers multiple account tiers for prop traders, ranging from smaller evaluation accounts to substantial trading capital for experienced prop shop traders.

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Trading Rules

Prop firms like FTMO establish specific trading parameters including daily loss limits, maximum drawdown thresholds, and minimum trading day requirements.

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Profit Targets

Each FTMO challenge phase includes defined profit targets that prop traders must achieve while maintaining proper risk management and adhering to all trading rules.

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Time Flexibility

The FTMO evaluation allows prop traders to work at their own pace within the challenge timeframe, accommodating different trading styles and schedules.

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Scaling Options

Successful prop traders can scale their FTMO accounts based on consistent performance, potentially accessing larger capital allocations over time.

FTMO Challenge Stages

Understanding the step-by-step evaluation process for prop traders

Challenge Phase

The first stage of the FTMO challenge requires prop traders to achieve a specific profit target while respecting maximum daily loss and overall drawdown limits. This phase tests trading strategy effectiveness and risk management discipline.

Verification Phase

After passing the initial challenge, prop traders enter the verification stage with adjusted profit targets and the same risk parameters. This phase confirms the consistency and replicability of trading performance.

FTMO Account

Upon successful completion of both evaluation stages, prop traders receive access to an FTMO trading account where they can trade with allocated capital while earning a percentage of generated profits.

FTMO Account Types

Different account tiers available through the FTMO prop firm

Normal Accounts

Standard FTMO accounts with traditional profit targets and risk parameters, suitable for prop traders with consistent strategies and solid risk management practices.

Aggressive Accounts

Higher profit target options for experienced prop shop traders who can handle increased performance requirements while maintaining disciplined trading approaches.

Swing Accounts

Designed for prop traders who prefer longer-term positions, swing accounts allow holding trades overnight and over weekends with adjusted risk parameters.

Risk Management in Prop Trading

Essential safety measures and rules for FTMO prop traders

Daily loss limits protect account equity from significant single-day drawdowns
Maximum drawdown thresholds ensure overall account preservation
Minimum trading days requirement promotes consistency over time
Prohibited trading strategies prevent high-risk gambling behaviors
Weekend holding rules manage overnight risk exposure
News trading restrictions during high-volatility events
Position sizing guidelines maintain appropriate risk per trade
Correlation limits prevent overexposure to similar assets

Frequently Asked Questions

Common questions about FTMO and prop trading

What is a prop trading firm?

A prop trading firm, or proprietary trading firm, provides capital to traders who pass evaluation challenges. Prop traders use the firm's capital to trade financial markets and share profits generated from successful trading activities.

How does the FTMO challenge work?

The FTMO challenge is a two-phase evaluation process where prop traders must achieve specified profit targets while adhering to risk management rules including daily loss limits and maximum drawdown thresholds. Successful completion of both phases qualifies traders for funded accounts.

What are prop firms match criteria?

Prop firms match traders with suitable account types based on trading style, experience level, and risk tolerance. Criteria include profit consistency, drawdown management, trading frequency, and adherence to specific trading rules established by the prop firm.

What trading instruments are available with FTMO?

FTMO accounts typically provide access to forex pairs, stock indices, commodities, and cryptocurrencies. The specific instruments available may vary by account type, and prop traders should verify which assets align with their trading strategies.

Can you retake the FTMO challenge?

Prop traders who do not pass the initial FTMO challenge or verification phase can typically retake the evaluation. Many prop shop traders use unsuccessful attempts as learning experiences to refine their strategies and risk management approaches.

What is the difference between prop money and personal capital?

Props cash or prop money refers to capital provided by proprietary trading firms to qualified traders. Unlike personal capital, prop money allows traders to access larger position sizes without risking their own funds, while sharing profits with the prop firm.

FTMO Prop Trading Firm Evaluation Platform