FTMO.com began as a small company with few day traders in 2014. These stakeholders helped each other’s businesses in money and risk management. They were aware that they could achieve professionalism by observing each other and following the disciplines. They worked hard together to make their concepts successful. Now FTMO.com is a place to help the upcoming traders to reduce their initial risk and frustrations in Forex trading. With this intention, FTMO.com launched its international platform in 2017.
The Main Goal of FTMO
Their main goal is funding good traders. They developed and maintain a 2 step evaluation course to evaluate the traders. Those two steps are FTMO Challenge and Verification. That is the beginning of the FTMO Challenge.
A person needs to pass both steps of this evaluation process to become an FTMO Funded trader.
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The First Step (FTMO Challenge)
FTMO challenge is the essential step that supports the funders to decide whether the trader is responsible and smart in managing the capital. FTMO has developed some rules to check this, and they are known as Trading Objectives.
This challenge has a duration of 30 calendar days. If the trader has achieved the trading objectives without passing 30 days, he/she can move forward to the verification step without waiting. It is one of significant advantage of this FTMO challenge.
The Second Step (Verification)
The Verification stage is the second and final step of our evaluation process. The purpose of the Verification stage is to test your trading consistency. FTMO needs to be sure that you can trade your system or strategy profitably in the long-run while respecting the rules. The Verification stage has much easier Trading Objectives compared to the FTMO Challenge stage. In the Verification, the Profit Target is reduced by half and you have full 60 calendar days to score here and shine like a star.
Note that just as in Step 1, you don’t need to utilize the entire duration of 60 days. As soon as you succeed in all Trading Objectives, you will get your funded account. FTMO refunds the full amount when you won the challenge (Pass step 2) and get the funded account.
Trading Objective Explained
The step 1 duration is 30 calendar days and the step 2 duration is 60 calendar days. If you manage to pass all the Trading Objectives sooner, you do not need to wait for the remaining duration days and will go to the next step.
Trading Day (Minimum trading days)
In the FTMO challenge, a trading day is when they complete at least one trade. On the other hand, you should remember that if the trader continued a transaction for more than a day, the trading day is only the executing day. You need to have at least 10 Trading Day to complete this objective.
Maximum amount you can lose per day (Maximum Daily Loss)
The next trading objective is the maximum daily loss of a trader. This value is $500 for the initial capital of $10000. Daily loss is the overall profit of the day (your profit minus your loss) The formula calculates the current daily loss:
Current daily loss = Results of closed positions of the day + Results of open positions
The daily stop loss is 5% of the initial capital spent. The above summation must not be more than 5% of the initial capital. The limit includes commissions and other expenses too.
Another thing to remember in this trading objective is that the maximum daily loss resets at midnight. Therefore, the profit or the loss made after midnight gets calculated with the next day’s values. Being aware of this daily loss limit. Because If you hit this daily loss limit you fail the challenge so make sure your daily loss under that limit and wait out the day to reset the limit
Maximum Loss You Can Have Within the Period (Maximum Loss)
The third trading objective is the account stop loss or the maximum loss a trading account can have. It is $1000 for the initial capital of $10000. The formula to calculate the maximum is the same as before.
Current loss = Results of closed positions + Results of open positions
The account stop loss is 10% of the initial capital spent. During the trading, a period trader has to maintain 90% of the initial capital in the account. Similar to the daily loss, the commissions and other expenses include the limits. This trading objective is the central aspect of the FTMO team decides whether the trader is suitable to work with.
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Your Target (Profit Target)
The next trading objective is the profit target, which is $1000 for $10000 initial capital. The Profit target is 10% of the initial capital. These traders have to achieve this target within the trading period (30 calendar days). The summation of closed positions provides the profit.
How to Start it?
To start the FTMO challenge, you have to sign up on FTMO.com as the initial step. Then you are guided with a free 14-day trial(Here you can get used to trading rules), you can either try the free trial or get started with a real challenge.
After getting an idea, you can start the challenge by configuring your account. To be a part of the challenge, you can go to this web page and configure it.
FTMO processes the challenge as soon as the trader pays the payment. Just keep in mind that it is easier for you to start the challenge if you make your payment in their business hours. You have the ability to pay via a bank transfer, with your debit/credit card or using Skrill (currently they don’t have a PayPal payment option).
How Refunding Happens?
FTMO asks to pay this fee as it acts as the trader’s commitment to handling his account responsibly. FTMO guarantees that no one loses more than this amount of money because they cover other possible losses. And they guarantee to refund Inital amount when you won the challenge (Pass step 2) and get the funded account.
The best thing in FTMO is that you do not need any prerequisites to start the challenge rather than the skill to trade well. FTMO program looks for serious, committed, and responsible individuals who need to be successful traders. So, if you wanna become a successful trader, FTMO.com will be the ideal platform for you.