As a trader, one of the biggest challenges you may face is passing the FTMO Challenge. This is a program that allows traders to prove their skills and get funded by a professional trading firm. However, passing this challenge can be difficult, especially if you are new to trading or have limited experience.
Fortunately, there is a simple money management system that can help you pass the FTMO Challenge with just two trades. In this blog post, I will share this system with you and explain how it works. If you would like to learn more, check out this course I have created.
How to Pass the FTMO Challenge: Risk Reward Ratio 1:3
The first step in this system is to use a risk-reward ratio of 1:3. This means that for every trade you make, you should risk 1% of your account and target 3% of your account. For example, if you have a $10,000 account, you should risk $100 and target $300.
To achieve this, you need to set your take profit three times bigger than your stop loss. This way, even if you lose a trade, your losses will be limited to 1% of your account, while your gains can be up to 3% of your account.
Risk Reward Ratio 1:3, Risking 4%
The second step in this system is to use a risk-reward ratio of 1:3 again. But this time, you should risk 4% of your account and target 12% of your account. For example, if you have a $10,000 account, you should risk $400 and target $1,200.
This step involves reinvesting your profits from the first trade into the second trade. This way, you are still risking 4% of your account, but your potential gains are now up to 12% of your account.
How to Pass the FTMO Challenge: What Happens If You Lose?
If you lose a trade, you should not worry. You can move on to the next trade and try again. However, if you lose 10 consecutive trades, you will lose 10% of your account and fail the FTMO Challenge.
In this case, you should reevaluate your trading strategy and make some changes. You can use other proven strategies and manage your money wisely to avoid consecutive losses.
Risk Reward Ratio 1:2
If you cannot achieve a risk reward ratio of 1:3, you can use a risk reward ratio of 1:2 instead. This means that for every trade you make, you should risk 1% of your account and target 2% of your account.
How to Pass the FTMO Challenge: Conclusion
Passing the FTMO Challenge can be challenging. But with the right money management system, you can increase your chances of success. This simple system involves using a risk reward ratio of 1:3 for the first trade. Then, 1:3 again for the second trade, risking 4% of your account and targeting 12% of your account.
Remember, trading involves risk, and you should only invest money you can afford to lose. If you want to learn more about this system and other trading strategies, consider checking out a course like the one mentioned in this post. Good luck and happy trading!
And if you want to learn more details, check out this course. You will see live examples and you will have a ready-to-use Robot to help you pass FTMO challenges.