Ftmo drawdown rules reddit

Ftmo drawdown rules reddit. FTMO helped me to make that last step with strict drawdown limits. But for the challenge, they're faced with the same problem as before. Also rules can change with time. FTMO 's rules on news trading: Challenge and Verification: Trade freely during any news release. Swing traders can go through a multi-month drawdown even with a profitable strategy, b As I'm wrapping up with my FTMO challenge, one thing I would like to know but cannot find any information on is once you become an FTMO trader, what happens at your monthly profit split if your account is in a slight loss but you haven't breached any of the drawdown rules during that month? Say you end the month at $199,000 on a $200k account. Equity bro. I think so, but not all of them, people say why wouldn't they do it themselves, lest they forget max amount you can have is 400k on ftmo for example, so if he can consistently make profit on his/her own, they can do it on other accounts, and if they manage it after the challenge, take a % of what they make on the account, if they lose the challenge, they may only refund the service fee or It's been around longer, doesn't have the same controversy around slippage, doesn't have a bizarre equity drawdown rule and it has more tradeable instruments. Dont blame anyone but yourself. Apex does offer a static account where they don't trail your drawdown but it's a $100k account with a drawdown limit of only $625. Sep 8, 2024 · Get 100% Refund when you pass. One of the reasons why FTMO has gotten so popular is because of their drawdown policy. 800$ 4. And crucially the most competitive aspect is Funding Talent's 80/20 profit split vs. But it is good for good traders with 0 capital (minus the $400-$600 you might have to pay 1-4+ times). Example: Max drawdown is 10%, you start a 100K account so you can only lose 10K total or you fail. I feel like a huge huge failure. This is how FTMO currently works, where you lose your funded account if you ever lose 10% of your starting balance. What most FTMO traders don't realize that non realized losses also count as ''actual loss'' in the FTMO dashboard. The combination of bigger drawdown and lower profit target might lure in people who are not ready yet to trade live. There are others like TopStepFX and Fivers. Then you have to complete the challenge where you have to make 10% in one month while adhering to their drawdown conditions. TFT has the 400k challenge from 1 buy, MFF is the cheapest, Ment Funding has its own rules with up to 2 million in direct challenge funding and only 1 phase to pass the challenge, max drawdown 5%, target 10% and you pass. The only Trading Objectives we require you to respect are the drawdown rules (Maximum Daily Loss and Maximum Loss), which are the most important rules we care about as these are the fundamentals of trading and we may use data on your simulated trades to perform our own trades in real financial markets. You initially pay for a challenge account. . I have been researching online prop firms for 3 months and trying to develop a strategy that would meet their constraints (based on FTMO normal account), namely: Max Daily Drawdown (MDD) of less than 5%; account max drawdown of less than 10%; profit target of 10% with 30 trading days (one calendar month + extension of two calendar weeks). The leverage is only 1:30 instead of the usual 1:100 however it is easily compensated by trippling your lot size. i like that maximum drawdown is 12 percent on mff and cheaper too. MFF is bad imo, If you’re in profit of 10k and you lose 7k profit ( 3k net ) You will fail the challenge due to drawdown even though you’re in profit Reply reply OtherwiseSomewhere19 All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. Imagine on the last day of the trading period, if you are on real challenge with real money and you profit at this level, but suddenly you hit over the daily loss limit $10+ or whatever. All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. I guess I have to learn the hard way. in reality people will say ftmo is superior, i think u dont have to leave ftmo and can have both of them at once. You don't get his logic, because you apply the same rules to a private account. -Cons: You have trading rules to follow, depending on the firm: trading close to news events, DD on open positions, instruments, risk, EAs, copy trading. And even so a good trader can break a drawdown rule very easily if he/she has a series of losing trades with good risk mgmt. Another part of FTMO is seeing if you can keep your account steady for 10 days. TL;DR: Your FTMO app shows your daily allowed DD after every new trade. The $400 discrepancy you’re explaining could just be slippage that wasn’t picked up on your trial. it goes nicely into profit for a few days, then price just comes straight back up and hits your sl at breakeven. With appropriate risk management the drawdown rules shouldn’t be an obstacle. Do my statements make sense? If yes, why would anyone not go for a swing account? FTMO is awesome. Then size the lots to risk 30% of your account every trade. 3200$ OP keeps losing the challenge due to the 5% drawdown rule, so he now deems it unfair. I lost accounts on tft and mff because of their stupid drawdown rules (and myself for not taking profit when I should have). It applies to the balance. Funding Talent's challenge requirements are 8% for the first phase then 4% for verification whereas FTMO is 10% then 5%. Greed, FOMO, impatience, revenge, etc. Edit: the rule breach is that cpi was a restricted event and i should have waited 2 mins after to close the position but stop loss was taken 30 seconds after the news. If you read what op said in other comments you would know he didn’t request a withdrawal but FTMO still send this to everybody who reach the date of their profit split but didn’t made money. As a general rule, i risk 1% for each trade on my ftmo account, but i only do it when i have a significant buffer on my account (at least 5%). Relative Drawdown is more complicated, and more beneficial for the firm. Are you willing to let the drawdown all the way to 50% of your account? or perhaps only 30% before you close the trade? Lets say your tolerance is 30%. So im doing a Ftmo challenge and im at phase 1 atm, in Two days I managed to rack up a 9,32% drawdown. You got greedy. If you are as well, you have your FTMO app that shows your daily allowed drawdown. the list goes on and on. Reply reply Crypto2Forex2022 The difference between FTMO Account and FTMO Account Swing is that, in the second one, you can trade through news and hold trades over weekends. Consider this as a crippled state, when trading with a prop firm. As ftmo don't care about how much ir less you trade, you can choose: You can open more trades so that means you can risk 1% or less for each one, but no more than 4. What happens to FTMO profits after violating Max Daily Loss. According to. If you go over the 5% then your trades recover, you still get hit with the violation. These are the sorts of people who can't be reasoned with. You cannot open or close new trades (including pending orders) on affected instruments within 2 minutes before and after the news release. Edit: I read his comment again, he opened 2 trades in his example, 1 trade -510 the other +850 so closing the +850 first then the -510 won't violate the rule. Posted by u/sochineez - 4 votes and 18 comments i think ftmo has better spreads, i like mff due to being bias as my first prop firm. Trading Funder’s team has found that these rules are designed to instill discipline in traders, ensuring they adopt a methodical The FTMO Challenge stage has reasonable rules, where the Profit Target is in balance with the drawdown we allow you to take. FTMO is legit, and I assume they have a lot of very successful traders. The FTMO Challenge is the first step of Evaluation Process and educates you to master your trading habits. The Funded Trader, My Forex Funds, & Ment Funding. Your starting account of $100k now sits at $400k as you've chosen to keep most of your profits in the account. If you would like to combine your individual FTMO Account into a single master FTMO Account, we can do so upon request. However, Max Daily Loss of $5k is always a See full list on ftmo. Sorry OP but that's a dumb question. Deleted all his recent posts. I got unlimited days to trade left. They are all the same with different rules, just whatever suits you best. The max drawdown rule applies to open positions as well. com Jun 1, 2023 · FTMO has established itself as a leading platform in the trading industry, offering traders the opportunity to prove their skills and potentially secure fund Over the years there have been plenty of occasions when I violated my own plan. Basically it is 5%, or 5000 on a 100k challenge, a day and increases with your profits ON THAT DAY ONLY. Holding existing trades is allowed. How does your risk management plan look like? 0. I am not going to blow this account, I blew too many! I just can’t believe myself sometimes, when I am trading my mind just switches off. Factoring in trailing drawdown, this would still require me to lose about ~15 trades in a row. Reasons for that always go back to psychology. That doesn't mean passing the eval isn't more cumbersome than other prop firms. FTMO Account (Standard): Restrictions apply during specific news releases. must not hit the determined daily loss limit. 5R trade. No issues. I keep losing to the relative drawdown rule. edit: Looks like he took his ball and ran off. So I heard you get a free re-try if you fail the challenge but still end in profit without breaking the drawdown rules. Honestly for me its not worth all the rules they have, I’d rather just use my $7k+. How is the daily drawdown calculated? I only have experience with ftmo, the funded trader and my forex funds. If your max daily drawdown is $500 and you have an open position that is $1000 in profit, then if must close the trade before that profitable position runs back to only a $500 profit or else its still a violation of their rule. Let's say you've been trading with FTMO for a year. The FTMO funded trading program is governed by specific rules that outline trader conduct, expectations, and the targets required to progress through each stage of the program. FTMO's 70/30. The drawdown will be tracked much more accurately on your eval and paid account. etc. Especially when you are around 7% drawdown. 5k and a profit target of 3k, you can never lose 2. That number will be your risk. That's about as far as his "logic" went. So guys, be aware. No funky gimmicks. The least number of days required for traders to successfully pass the FTMO trading challenge is 10 trading days while the maximum is 30 days. You can lose 10% on FTMO with 10% target, so you have to double your account. I am getting ready for the challange myselfrisk managament for the rules is simple and you can risk more that 1% per trade. If <10% of people complete the FTMO challenge, my guess is over half of those challange winners will break their drawdown rule due to not leaving enough drawdown cushion from previous profits, or just bad trading because they got somewhat lucky with the challenge results and time will reveal the true profitability. 1600$ 5. Real fuking hard. I only trade with ftmo because the other ones are build to make u lose if the market is against you. Now let me flame the f out of your cocky ass. For example, at 7% total drawdown you are forced to make 7% back with just breathing room of 3%, just to not loose the subscription money. And this is close to impossible in most occasions. Constantly have to jump in and out of trades due to news or the weekend. Because it seems easier. 9% with all trades open Open 1-2 trades per time. The maximum daily loss resets at midnight daily and does include both open and closed positions. Customer Service SUPER fast and responsive. . For swing traders, it's a great improvement too once they actually get the funded account. I'm by no means bragging, I'm simply stating that FTMO is worth it and anything worth doing is hard. No strategy I have can make 10% in a month without the breathing room. The issue here is that you see all the 'success' stories and no failure stories. however i dont do funded accounts anymore due to the drawdown rule on your equity; lets say you have a 50K account and you place a sell as a swing trade. 400$ 3. I don't know if that makes sense. New comments cannot be posted. My strategy works over time but without a dumb luck streak it won’t do +10%. Before I insulte you I will let you know I’m from Switzerland so not native English speaker. You get the most datapoints in shortest amount of time and can watch consistency of the traders real time basically. It's a huge improvement for day traders at least. and didnt limit losses. Locked post. For example, if the account is 10k and the drawdown is until 9,900, then they trail the drawdown until you have enough profit to cover the drawdown. I can’t seem to follow my rules and I always just want to pass as fast as possible. I'm aware that Apex's drawdown rules go away once you pass the eval, get a funded account, and get above the drawdown limit. One week goes by and you've lost 8K and have made $0 profit. (1% of risk per trade with 66% win rate) FTMO rules are far laxed compared to the firm I work for now but l manage a far bigger book and obtain bonuses and payouts. There is no profit due for your Profit Split. You don't keep your full profit. Instead of a fixed equity level below your starting balance, you're There are some that have trailing drawdown until a certain point. The combined FTMO Accounts need to be at least at their initial account balance to be merged and meet the following conditions: The FTMO Account is not in drawdown. You will never have worry about a "MyForexFunds" moment w/ FTMO. If you're not careful , you might lose the account because you broke a rule you forgot about. I passed, focusing on my risk management, not profit. Your daily drawdown got reset and you didnt think about it. Doesn't matter who you choose, FTMO, MFF, The Funded Trader, 5%ers, Topstep. I betcha they do, but they will copy only miniscule number of people. It took only a 1. My question is does this apply to both the first and second stage? Also do I get the re-try if I'm just $1 in profit without breaking drawdown rules? If profit goes up by the drawdown then back down by the drawdown, you've failed by sizing way too big and not taking profits prior to the drawdown Question B: Yes, at least on the evaluation account. FTMO normal account is trash. Plus they don't have the FTMO restrictions of trading during news or holding over the weekend which will benefit swing traders. There are 4 different challenge accounts you can pay for: $10,000, $25,000, $50,000, and $100,000. I recently broke these rules and they withdrew more than i had made off the trades no idea how they worked it out. Essentially, if you have a trailing drawdown of 2. The rule says that at any moment of the. true. No "gotcha" moments or stupid fine print rules. I've done challenges on both and I personally prefer FTMO. None of the people that fail post anything up on reddit because there is no point, while the people that succeed (which is a tiny %) are on here having their 15 mins of fame before 99% of them inevitably lose the account which they attained through luck rather than actual trading skill. 83% risk per trade. No "silly discounts". It's really easy to break this rule. 5k from the top of your open balance. They've been around the longest, have the most experience, and it shows. Thats why they also focus on daytrading and have such strict drawdown rules. Well this is what happens when I don’t follow rules. I trade on a funded account (5k trailing drawdown) with 2 ES contracts. I'm a little biased though because I also trade bitcoin in addition to forex and the MFF's crypto spreads are horrendously garbage imo. We call these rules Trading Objectives . In this stage, the major rule is for the trader to meet the profit target which has been set in such a way that it is balanced with the drawdown that the company allows. You need to demonstrate your experience by sticking to Maximum Loss Rules while making the necessary simulated profits of 10% of initial balance. I’m very curious about this phenomeno, never took an ftmo challenge, would like to hear your thoughts and experiences. This rule can also be called “trader’s daily stop-loss”. Always payout, every time. First time i perform this bad. Lowering your risk may help your emotional since 10 trades may not be enough for a drawdown period. Because if you get a funded account, 50k, and traded it up to 100k, that means you have made 50k, but if the 10-12% overall drawdown applies, then when you lose 12% and are down to $88k, does that mean your account gets suspended / terminated, and you 38k profit goes?! Passing the challenge is easy with a bit of luck but 99% of those who pass the challenge can’t manage to keep the account for more than a month since they would break the rules because they simply don’t know how to trade. However, after all the euphoria resided I checked my FTMO dashboard to found out that I broke the Daily drawdown limit with only $20🤦. Thus you can manage risk better while copying them. Clearly this rule are set up by themselves purposely to minimize higher lost. Now we can trade through high impact news and hold runners over the weekend if we want. The 2 main rules that I hear traders mess up on the most: *Floating* Maximum drawdown - FTMO not only counts closed positions into the drawdown rule but also open positions. The real question is do YOU have a consistent and profitable method? That is the real question. You have to be profitable to be able to make money on their So even when you drawdown in equity you breached the rule. Beeing happy about the possibility to have bigger drawdown is asking for trouble. the initial account balance. There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. Based on this info, you need to decide how much drawdown are you willing to risk on your personal account. If you can make 10% on FTMO for 5 months, on your private account you will have: Month 0: 100$ 1: 200$ 2. If you can manage 30:1 go with the swing account. Sigh. The Max Loss is not a current threat since you're sitting well clear of $90k. 23 votes, 93 comments. Im currently doing the challenge myself. So if you are up 30k TODAY you can drawdown All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. Once i blow this one i will go to myforexfunds. eptrb nxia dsbvc pzwrvz wgh stia lxdu oycqn ppxco fhqjk