Most traders who fail the FTMO challenge don’t lack a strategy. They break a risk rule on one bad day. This guide turns FTMO’s rules into a concrete plan: which program to choose, how much to risk per trade, and the specific mistakes that fail FTMO accounts.
Step 1: Choose the right program
For most traders we recommend the 2-Step, because its static 10% maximum loss and lack of a consistency rule leave the most room. Here are the rules you’ll be working with:
2-Step (FTMO Challenge + Verification)
| Profit target | 10% (Phase 1), 5% (Phase 2) |
|---|---|
| Maximum daily loss | 5% of initial balance, measured on equity |
| Maximum loss | 10% of initial balance, static |
| Time limit | None |
| Consistency | None |
1-Step (launched February 2026)
| Profit target | 10% |
|---|---|
| Maximum daily loss | 3% |
| Maximum loss | 10%, trailing |
| Best Day Rule | Best day ≤ 50% of positive days’ profit (to pass and for rewards) |
| Time limit | None |
Step 2: Size every trade against the limits
On a $100,000 account with a 5% daily limit ($5,000), a 10% maximum loss ($10,000) and a 10% target ($10,000):
| Risk per trade | Risk in $ | Full losses to hit daily limit | Full losses to hit max loss | Wins at 2R needed for target |
|---|---|---|---|---|
| 0.25% | $250 | 20 | 40 | 20 |
| 0.5% | $500 | 10 | 20 | 10 |
| 1% | $1,000 | 5 | 10 | 5 |
At 0.5% risk you can survive a normal losing streak and still reach the target in a reasonable number of winning trades. At 1%, a single bad morning can end the account. Use our position size calculator to turn this into lot sizes.
Step 3: Set personal limits inside FTMO’s limits
- Stop for the day after losing half the daily allowance ($2,500).
- Stop after three losing trades in a row, regardless of size.
- Treat the static maximum loss as a buffer that grows with profits, but never plan to use all of it.
- Close or reduce positions before major news unless your plan specifically trades it.
Step 4: Avoid the mistakes that fail FTMO accounts
- Letting floating losses on open trades eat into the 5% daily limit.
- On the 1-Step, making most of the profit on one day and failing the Best Day Rule.
- Forgetting the 1-Step’s maximum loss trails, unlike the 2-Step’s static limit.
Read the full FTMO rules explained page before your first trade, especially the banned strategies.
Step 5: A realistic timeline
Aim for steady progress of around 0.5–1% on good days rather than hitting the target quickly. At that pace, a 10% target takes several weeks, and with no time limit, there’s no advantage to rushing. Spreading profits across days also keeps you clear of consistency rules.
Fitting the challenge around South African hours
Most FTMO traders in South Africa focus on the London open (09:00 or 10:00 SAST) and the London–New York overlap in the afternoon. Know your daily loss reset time in SAST: firms that reset at 5 PM New York time reset at 23:00 or 00:00 SAST, so avoid carrying large floating losses into it. If you pay the fee in rand by card, it counts toward your single discretionary allowance.
Step 6: After you pass
Complete KYC promptly, re-read the funded-account rules (they can differ from the evaluation), and plan your first payout. Payouts at FTMO: First after 14 days, then bi-weekly or on demand; Usually fast. Request a modest first payout to confirm the process works.
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FAQ
How long does it take to pass the FTMO challenge?
It depends on your strategy, but at 0.5–1% on good days a 10% target usually takes several weeks. There is no time limit on the main program.
How much should I risk per trade on FTMO?
Most funded traders risk 0.25–0.5% per trade. On a $100,000 account, 0.5% is $500, which allows 10 full losses before the daily limit.
What is the easiest FTMO program to pass?
For most traders, the 2-Step, because its static 10% maximum loss and lack of a consistency rule leave the most room.
What fails most FTMO challenges?
Letting floating losses on open trades eat into the 5% daily limit.
Can South Africans take the FTMO challenge?
Yes. FTMO accepts South African residents; confirm eligibility at checkout.