The FTMO challenge is one of the most popular trading challenges out there. Passing this challenge will enable you to get funded and trade with larger amounts of money. However, the challenge is not easy to pass, especially if you are a beginner. In this blog post, we will discuss how to pass the FTMO challenge with a small account.
What is the FTMO Challenge?
The FTMO Challenge is a two-step evaluation process that traders must pass in order to get funded. The first step is the Challenge, where you trade a demo account with a specified profit target and risk management rules. Accordingly, if you pass the Challenge, you move on to the Verification, where you repeat the same process on a live account. If you pass the Verification, you get funded and can trade with larger amounts of money.
The FTMO Challenge is a great way to prove your trading skills and get funded. However, it is not easy to pass, and many traders fail. The Challenge requires you to make a profit within a certain time frame while following strict risk management rules. The profit target and time frame depend on the account size you want to get funded with
Passing the FTMO Challenge with a Small Account?
If you have $1000 in total to risk, it can be challenging to pass the FTMO Challenge. You would have only one shot!
However, it is possible if you follow the right strategy. Here are some tips to help you pass the Challenge with a small account:
Start Small
It is best to start with a small Challenge. For example, if you have a $1000 to invest, start with the $10,000 Challenge instead of the $100,000 Challenge. Starting small will help you build confidence and improve your skills. Once you pass the small Challenge, you can move on to the larger ones.
Passing FTMO Challenge: Diversify your Risk
Diversifying your risk is important when trading with a small account. Instead of taking large positions on a few trades, take smaller positions on several trades. This way, you can spread your risk and increase your chances of making a profit. Diversification also helps you avoid losing all your capital on one trade.
Use a Trading System
Using a trading system is essential when trading the FTMO Challenge. A trading system is a set of rules that you follow to enter and exit trades. It helps you make objective decisions based on your analysis of the market. Accordingly, you can use a trading system that you have developed or buy one from a reputable source. Tools like the ForexProfitSupreme Meter will greatly help you achieve your goals.
Passing FTMO Challenge: Follow the Rules
The FTMO Challenge has strict rules that you must follow. These rules include the profit target, time frame, and risk management rules. Make sure you understand these rules before you start the Challenge. Failure to follow the rules will result in failure of the Challenge.
Record Your Trades
Recording your trades is important when trading the FTMO Challenge. It helps you analyze your trades and identify your strengths and weaknesses. You can use a trading journal or a spreadsheet to record your trades. Make sure you record the entry and exit points, position size, and profit/loss.
Passing FTMO Challenge: Final Thoughts
Passing the FTMO Challenge with a small account is possible if you follow the right strategy. Start small, diversify your risk, use a trading system, follow the rules, and record your trades. These tips will help you improve your trading skills and increase your chances of passing the Challenge. Remember, passing the Challenge is not easy, however it is worth the effort if you want to get funded and trade with larger amounts of money. A great course to show you how to pass every step of the way is available. Grab it here.