Ftmo drawdown reddit. You have to be profitable to be able to make money on their Funding Talent's challenge requirements are 8% for the first phase then 4% for verification whereas FTMO is 10% then 5%. Overall, I was still roughly 7% in profit. I had a buy stop on SPX risking 1% and immediately was put into 6% drawdown. Im currently doing the challenge myself. 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. Now obviously I need to lower risk and grind back to positive. 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. No strategy I have can make 10% in a month without the breathing room. Swing traders can go through a multi-month drawdown even with a profitable strategy, b What happens if you finish your month trading on a drawdown of -2% ( which im currently at). true. Uhum. 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. My daily hit 23k. MFF's drawdown limits are based on account equity as opposed to account balance. Also live account cant buy you a peace of mind since anybody would rather lose their funded account than blow their live account worth of $3. Adding to positions to balance out the cost, ended up biting me. Then you have to complete the challenge where you have to make 10% in one month while adhering to their drawdown conditions. Clearly this rule are set up by themselves purposely to minimize higher lost. 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 You got greedy. And if you’re trading afraid to make a drawdown and cannot trade the same % risked that got you in that drawdown it will only make it harder to get out of that drawdown. FTMO will look at their net exposure and adjust it at the portfolio level if it’s too risky. First time i perform this bad. The $400 discrepancy you’re explaining could just be slippage that wasn’t picked up on your trial. You can achieve an equal amount of profit from just $10,000 account with own money, taking almost 40% floating DD ($4000), instead of <5% realized DD in FTMO. Can't go wrong with FTMO. The maximum daily loss resets at midnight daily and does include both open and closed positions. FTMO is legit but definitely avoid non reputable too good to be true prop firms and look at the broker they use too…that doesn’t mean I haven’t ‘wasted’ literally thousands upon thousands on challenges with ftmo. There are some that have trailing drawdown until a certain point. com Jun 1, 2023 · These rules are designed to promote responsible risk management and preserve traders' capital. Your daily drawdown got reset and you didnt think about it. So it's been a while that I know FTMO, signed up with them at the end of 2019 not long after it launched, but failed the tests (2 100k acc tests), I then switched to trading cryptos (on personal accounts) and been quite profitable with that, and more importantly learned to trade better! Then there is the aspect that if you have a $10k personal account and end up having a 10% (10% as if trading $100k) drawdown for whatever reason (sometimes you just have bad luck), then you've blown your account and are out $10k whereas with FTMO you're only out the ~$600 for the challenge if it happens during the challenge or during the first I am currently funded with myforexfunds and I have stupidly managed to get myself into a 9% drawdown on the live account (max drawdown allowed of 12% before I lose the account). 5k However, they do have one drawback that may be a dealbreaker for many. Much less chance of breaking drawdown rules that way, but then again, it'll take muuuuuch more time. And crucially the most competitive aspect is Funding Talent's 80/20 profit split vs. Sorry OP but that's a dumb question. You will never have worry about a "MyForexFunds" moment w/ FTMO. So if you are up 30k TODAY you can drawdown Always payout, every time. Do you lose your account? Im on my first month trading live after completing the challenge and evaluation, and this particular month wasn’t successful for me. 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). You show yourself that you can trade! It’s never easy trading under pressure. I am currently trying out a one-stage FXify challenge (about $80 with discounts, no time limit) - $15k account 10% PT 6% trailing drawdown ($900) - exclusively trading DOW and NASDAQ. Questions. Dont blame anyone but yourself. 200K FTMO Finally out of drawdown Prop Firms Reddit community and fansite for the free-to-play third-person co-op action shooter, Warframe. When considering your risk you need to use the maximum drawdown amount, not the total account size. to be fair, ok over-leveraging. Instead of a fixed equity level below your starting balance, you're So with drawdown on FTMO the drawdown limit is from original balance for example 10k so if I make 1k then lose 500$ will my drawdown for the day hit ? Reply reply More replies AlexSC59 And did my due diligence asking them (the ftmo team) multiple times if i was allowed to hit the 10% target before the 10 day minimum. I also read some reviews on TrustPilot and it seems like the Daily drawdown is one of the main reasons why traders fail the FTMO challenge. Prop Firms Step 1 – FTMO Challenge. Prop Firms. But for the challenge, they're faced with the same problem as before. Max loss was supposed to be 20k. And still, I would be way more stressed out having a drawdown period on my personal account than on a FTMO account. 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. With FTMO, after 2 months of consistent trading you can have that capitol to trade with. But like any challenge its still a gample on your part since a drawdown could have easily taken you out of the challenge. If I pass this one then I can use this account as to replace my part time job day trading on the days I don’t have school instead. It's way quicker than building up your personal account from 150 to 10k. FTMO's 70/30. So im doing a Ftmo challenge and im at phase 1 atm, in Two days I managed to rack up a 9,32% drawdown. Here we talked about the daily loss limit and how to protect your account to not hit the daily draw down limit in FTMO. One of the reasons why FTMO has gotten so popular is because of their drawdown policy. Commissions/spreads are low and competitive. In FTMO, the maximum daily drawdown limit allowed on a $100K account is 5% which is $5,000. Basically it is 5%, or 5000 on a 100k challenge, a day and increases with your profits ON THAT DAY ONLY. Do my statements make sense? If yes, why would anyone not go for a swing account? Based on this info, you need to decide how much drawdown are you willing to risk on your personal account. I was over risking and revenge trading because I am an impulsive person who hates having losses. If FTMO would disclose data, I think most challenges are passed using 1 to 2 trades risking 5% to 10%. The max daily loss is the thing you need to watch out for. 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. You initially pay for a challenge account. Try to take lower risk in Feb 16, 2021 · The FTMO head office is in the Czech Republic, while that of The 5%ers is in Israel. I don't know if that makes sense. Example: Max drawdown is 10%, you start a 100K account so you can only lose 10K total or you fail. I place the trades today and all 3 trades are 2% in profit at the end of the day, so up 6% in equity. I got unlimited days to trade left. I've made a profit of 2. 5k from the top of your open balance. My challenge ends tomorrow. What does this mean? I already got the message saying my daily loss has been breached and to email FTMO. With a leverage of 1:30 or 1:100 for every $1 in the trading account, the trader can control assets worth $30 or $100, respectively. So I heard you get a free re-try if you fail the challenge but still end in profit without breaking the drawdown rules. Relative Drawdown is more complicated, and more beneficial for the firm. Before you can get your FTMO Account, we need to be sure you can trade responsibly and manage risk properly as, in the future, we can use your simulated trades performed via the FTMO Account when trading on our own account on real financial markets. This article will broadly cover the cost, account, and trading conditions comparison, drawdown, and profit targets, and a brief conclusion about specific aspects that each firm excels in over the other. I use break and retest on the M5 with HTF confluence risking 1% per trade to make 2%. Going through a low strike rate since two weeks and now I'm down 5% on my live account. Ive had a load of questions over the past few weeks from people asking me advice and general pointers on what to do after posting my FTMO challenge results. They kept saying I had to wait till the 10 days are over and then i could reach the 10%. I had 13k in drawdown and about 6k in losses. Essentially, if you have a trailing drawdown of 2. Ended up putting me over the daily drawdown. I am thinking long term 🤔, max equity drawdown is 4% on the original account, i want to keep my profit to get more drawdown allowance lets say up to 10% , 6% from me and 4% from them , because i want to take risks! 5% daily drawdown limit rule on FTMO is unfair, at least during the challenge stage. Their challenges are a bit tougher than My Forex Funds where I'm currently funded. com's Reddit Forex Trading Community! Here you can converse about trading ideas, strategies, trading psychology, and nearly everything in between! ---- We also have one of the largest forex chatrooms online! ---- /r/Forex is the official subreddit of FXGears. I still think FTMO is a great short term idea. This would be interesting because I’ve always wondered why so many forex traders are attracted to FTMO. Next day all 3 trades hit breakeven which means -6% in equity which is a breach in the daily equity drawdown of 5% meaning account lost. FTMO drawdown. Edit: this is my first 9 days with real money after passing the FTMO challenge / verification steps. FTMO really doesn't like it when you risk a lot. The real question is do YOU have a consistent and profitable method? That is the real question. No issues. But once you have the funded account, there's no reason to take any risk that will blow your account. Trading spx500 went short around noon, and it didn’t come back. I should add I have also passed a few times too with them. Spread on spx stays at 38 And then bump my risk back up to 2% as I accumulate the account since MentFX has no relative drawdown rule, only absolute drawdown of 5% of your initial balance. Need to take this back, congrats bro. I keep losing to the relative drawdown rule. If you are as well, you have your FTMO app that shows your daily allowed drawdown. com, a trading forum run by professional traders. 10% drawdown allowance on a 100k account is NO different than risking 10% per trade on a $10k account. Plus they don't have the FTMO restrictions of trading during news or holding over the weekend which will benefit swing traders. They’re worried the daily drawdown limit generated by the account balance will be negatively effected by drawdown of an open trade that’s in profit. If I have a 100k funded account, and take a trade with a draw down of 4%, close the trade, then after (same day) take a second trade with a draw down of 2%, does this mean I exceeded my daily draw down and will have my account closed? The drawdown will be tracked much more accurately on your eval and paid account. Nice mate, i started yesterday my challenge with 40k and have a drawdown auf -4% now, im such an idiot haha bc i traded with my old mindset. This means if you are up 5% on a trade, move the stop loss to break even, and the trade comes back to stop you out at break even, you would have violated MFF's drawdown rules. One week goes by and you've lost 8K and have made $0 profit. In this scenario I didn't lose a single $ yet account daily drawdown reached. No he's right. FTMO Funded Account Drawdown. It's a huge improvement for day traders at least. You need to demonstrate your experience by sticking to Maximum Loss Rules while making the necessary simulated profits of 10% of initial balance. FTMO is legit, and I assume they have a lot of very successful traders. For swing traders, it's a great improvement too once they actually get the funded account. The true advantage about FTMO is that when you passed the test, you get the refund so it didnt cost you at the end. Prior to that mess I was 800 shy of the goal. Sigh. People bitch about higher cost and FTMO being 'plain jane' without all the bells and whistles, but that's what makes them great. This is how FTMO currently works, where you lose your funded account if you ever lose 10% of your starting balance. I submit that his example is correct. I really thought about this and I have concluded the same. Also, FTMO is managing their entire portfolio risk, so in your hypothetical example, there are likely a lot of traders with those positions (not just two) and all those positions offset each other to varying degrees. Daily loss was 10k. Hello, today was my first day as a FTMO trader, and didn’t go as planned. FTMO Drawdown Defeated Prop Firms Started out rough but stuck to my strategy & bounced back Locked post. Same here. Let's take a closer look at the key aspects of FTMO's drawdown rules: The Challenge Phase: FTMO Drawdown Issue Meeting Summary. Now we can trade through high impact news and hold runners over the weekend if we want. Doesn't matter who you choose, FTMO, MFF, The Funded Trader, 5%ers, Topstep. It is completely my fault. At prop trading firms like FTMO, leverage allows traders to control large positions with small capital. The max drawdown rule applies to open positions as well. 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? *Floating* Maximum drawdown - FTMO not only counts closed positions into the drawdown rule but also open positions. 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%. Our FTMO Challenge is the first step of our Evaluation Process. That number will be your risk. and didnt limit losses. Well now I have ended up in 8% drawdown. 5k and a profit target of 3k, you can never lose 2. 6k in a 100k account single phase account with a Max Drawdown of 6%, and I went ahead and withdrawn the profits. Is there a chance for me or am I wasting my time? If you export your details trading results from mt4 or mt5, drawdown statistics only count when you close each trade. So in my case, I reached a draw down exceeding 5%, but never an Another point to note is that trading with own money is always better and profitable in long term. Any suggestions for recovery would be appreciated! See full list on ftmo. I figured that the max Drawdown at this point would be at around $96,444, which would be a 6% drop from $102,600 (the account high). Example: max drawdown of 10%… if you were a bit informed about statistics you would know that a variance of 30% in a strategy is perfectly healthy and fine, which means that expecting a drawdown inferior to 10% is equivalent to expect a very low risk tolerance, hence low profits… and that’s not compatible with their 10% profit target. Welcome to FXGears. The leverage is only 1:30 instead of the usual 1:100 however it is easily compensated by trippling your lot size. Let's agree to disagree FTMO is legit and has been around for a while. FTMO Daily Drawdown & other things to look out for. Another part of FTMO is seeing if you can keep your account steady for 10 days. The FTMO Challenge is the first step of Evaluation Process and educates you to master your trading habits. There are 4 different challenge accounts you can pay for: $10,000, $25,000, $50,000, and $100,000. For FTMO, the two trials involve more luck that normal trading due to the time constraint. . Then size the lots to risk 30% of your account every trade. 49 votes, 28 comments. The game is currently 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. Since the daily drawdown limit is calculated by initial account balance, then being in profit actually adds to the daily limit until the trade is closed and a new day has begun. "At FTMO - daily draw downs are equal to losses. 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. No "gotcha" moments or stupid fine print rules. 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 So im doing a Ftmo challenge and im at phase 1 atm, in Two days I managed to rack up a 9,32% drawdown. 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. com's Reddit Forex Trading Community TL;DR: Your FTMO app shows your daily allowed DD after every new trade. I’ve hopefully learnt something from all the pain however. You only need to pass 8% in the first round and 5% in the 2nd to get funded and drawdown is 12%. gilzezbzxglrmnrhbkmtahbiwjpyrqxvfaonnlzrnlakwfremcg