We’re going to take a look at 7 rules to follow in order to have the highest

chance of success at passing any of them.

Rule #1 Take the time to actually understand their rules and what they mean…

I’ve worked with 400+ Traders and you wouldn’t believe the amount of them that
take a funded trader challenge and lose because they broke a rule…

Every rule, other than the Max Loss, should never be broken!

So for example, they trade through news when they're not allowed to, or maybe
they don’t put a stoploss, etc.

Find out the rules for the specific funded challenge you're doing, learn them
inside out, write them on a word document, print it, and stick it on your wall.

Rule #2 Actually do their trial phase.

The FTMO trial phase is just a shortened version of the actual challenge but
gives you a good indication that you can follow the rules.

Even FTMO recommends it!

So definitely don’t be lazy and actually take advantage of it before doing your
challenge.

Most funded trader programs that I’m aware of have some sort of trial phase.

Rule #3 Have proper backtesting results for your system…

I’m a little biased here since I think proper backtesting is actually the answer to
all trading problems… But for good reason!

If you have a lot of backtesting data on your system you can make some good
assumptions.

For example:
Let’s say this is the data on our trading strategy.

48% winrate

2.23 :1 Reward to risk ratio

3 Trade opportunities per day on avg.

Now let’s take a look at the FTMO rules (10K account):

Trading Period: 30 Days

Max loss: $1000

Profit Target $1000

Now let's input these into a forward simulator. I’m going to use winrate.io, but
we’re making our own forward tester soon!

Let me input 60 Trades (3/day X 20 trading days in a month)

10K account balance, 1% risk, and the rest of the metrics…

As we can see during this 1 month period we took a max drawdown of $800
(down to $9200 balance), however, we did eventually manage to reach our
target of +$1000 (in fact we actually hit over +$3000).

See, now we know this strategy has a chance of actually passing the challenge.

Most people don’t do this and often don’t realize their strategies might actually
not be suited for this kind of challenge!

Rule #4 Re-analyse every 20 trades

20 trades isn’t a huge dataset however its enough that you might see patterns
or mistakes in your trading.

For example, of those 20 trades, maybe 2 were FOMO trades, 1 didn’t have the
right stoploss placement, 1 you exited before your strategy told you to, etc.

Whatever your system or rules might be…

Be sure to make sure they’re being followed correctly every 20 trades.

Personally I like doing this in the TraderEdge PnL calendar but you could also
use a notepad (if you’re weird…)

Rule #5 Don’t be overly aggressive…

At least for FTMO, As long as your profit and loss isn't negative then you get to
try the challenge again for free…

So be patient and be smart!

Make good trades and don’t throw the kitchen sink out the window just because
you haven’t passed yet. (As long as you’re in the green).

I hope you guys implement some of these if not all of these tactics if you try a
FTMO challenge.

Even if you don’t…

Like I said they’re all good things to practice anyways since no matter if youre
trading for FTMO or yourself, they’ll help.

Alex
Founder & CEO, TraderEdge

P.S If you haven’t used TraderEdge yet to backtest your indicators and
strategies... Start your 7-day free trial now!

Yes.. you have to put in a credit card to do the trial. BUT.. you can cancel the
trial at any point! AND… if you STILL don’t find value with the software even
after the trial, we’ll give you a full refund. Just email us!

If you’re not sure how TraderEdge works, here’s a quick video explaining it!

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