How to Pass the FTMO Challenge in 2026

The FTMO Challenge is an evaluation, not a race. Most of the difficulty is not in finding trades — it is in respecting the loss limits while you grind toward the profit target. This guide lays out the public rules exactly as FTMO states them, gives you a risk-management plan with real position-size maths, compares FTMO to a few other firms neutrally, and shows where Orion RFX's free tools fit. Define the edge.

Important: Nothing here is financial advice or a promise of any result. Trading carries a real risk of loss. Please read our Risk Disclosure before you act on anything below.

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What the FTMO Challenge actually is

FTMO is a proprietary-trading firm that runs a two-phase evaluation on a simulated account. You pay a one-time fee, trade to a set of objectives, and — if you meet every objective without breaking a rule — you progress to an FTMO Account where the profit target is removed and the loss rules continue. The point of the evaluation is to demonstrate that you can produce a return while controlling risk. Breaking a loss limit ends the attempt regardless of how profitable you were beforehand.

FTMO offers more than one structure. The numbers most traders mean by "the FTMO Challenge" are the 2-Step FTMO Challenge, so that is what the table below uses. FTMO also offers a 1-Step variant whose daily-loss limit differs (see the note under the table). Always confirm the live objectives on FTMO's own Trading Objectives page before you buy, as firms update terms.

The public FTMO rules (2-Step Challenge)

The following are FTMO's stated trading objectives for the 2-Step FTMO Challenge. These are public rules published by FTMO, not claims by Orion RFX.

Objective	Phase 1 (Challenge)	Phase 2 (Verification)	What it means in plain English
Profit Target	10% of starting capital	5% of starting capital	The minimum gain you must reach to pass the phase.
Maximum Daily Loss	5% of starting capital	5% of starting capital	Your equity must not drop 5% below the day's starting balance on any single day. Breaching it ends the attempt.
Maximum Overall Loss	10% of starting capital	10% of starting capital	Your equity must never fall 10% below the original starting balance, on any day, at any time.
Minimum Trading Days	At least 4 trading days	At least 4 trading days	You must trade on at least 4 separate days per phase. They need not be consecutive.
Time Limit	None stated	None stated	There is no maximum number of days to reach the target.

Note on the 1-Step variant: FTMO's 1-Step Challenge uses a 3% maximum daily loss (versus 5% on the 2-Step), keeps the 10% overall loss, and uses a single 10% profit target. It also applies a "best day" consistency condition. Check the live page for which structure you are buying.

Two things trip people up most often:

• The daily loss is measured against the day's opening balance/equity, not the original deposit. A good day raises the floor for the next day; it does not give you a bigger cushion on the day you made it.
• The overall loss is measured against the original starting balance and applies to floating (open) equity, not just closed trades. A deep open drawdown can breach it even if you never close the trade.

A risk-management plan that fits the rules

The rules reward patience. If you risk a small, fixed fraction per trade, a normal run of losers cannot get you anywhere near a daily or overall breach. Here is a plan built around exactly that.

1. Risk a fixed fraction per trade

Risk 0.5% to 1% of the account per trade. On a 10% overall-loss budget, risking 1% means it would take a long, uninterrupted losing streak to threaten the account — and risking 0.5% roughly doubles that buffer. Pick one number and keep it constant; do not increase size to "make back" a loss.

2. Stop trading at a daily buffer, before the hard limit

Set a personal daily stop well inside FTMO's 5% daily-loss line — many traders use 2–3%. If you reach your buffer, you are done for the day. This keeps a normal bad day from ever touching the rule that ends your attempt. The hard limit is the firm's line; your buffer is yours, and it should always sit in front of theirs.

3. Size every position from the maths, not from feel

Position size comes from one formula. Risk in money divided by risk in price per unit gives you the number of units to trade:

Worked example. Say you have a $100,000 account, you risk 1%, and your stop is 20 pips on a pair where one pip is worth $10 per standard lot (1 standard lot = 100,000 units):

• Money at risk = $100,000 × 1% = $1,000
• Risk per standard lot over a 20-pip stop = 20 × $10 = $200 per lot
• Position size = $1,000 ÷ $200 = 5.0 standard lots

If your stop were 50 pips instead, risk per lot would be 50 × $10 = $500, so position size would fall to $1,000 ÷ $500 = 2.0 standard lots. The wider the stop, the smaller the size — the money at risk stays fixed at $1,000. That is the whole point: your stop distance changes per trade, your risk does not.

Pip value varies by pair, account currency, and lot size (for many JPY pairs and cross rates it is not $10 per standard lot). Always confirm the pip value for the exact instrument before sizing — our free calculators below do this for you.

4. Define the edge before you risk anything

A risk plan only protects an edge you actually have. Know your entry condition, your invalidation (where the stop goes), and roughly what you expect the trade to return relative to that stop, before you click. If you cannot state those three things, that is not a trade — it is a guess, and guesses are exactly what the loss limits exist to catch.

FTMO vs other firms — a neutral feature comparison

Different firms suit different traders and asset classes. The table below frames published features only; it does not rank firms or make any claim about which is "best" or about your odds with any of them. Models change often — verify each firm's current terms on its own site before deciding.

Firm	Focus	Evaluation model	Drawdown style (as published)
FTMO	Forex / CFDs	2-Step (also a 1-Step variant)	Daily loss + overall loss measured against starting balance; no time limit stated.
FundedNext	Forex / CFDs (also futures)	Multiple programs, including a 2-Step (Stellar)	On its Stellar CFD program, FundedNext publishes a balance-based (non-trailing) drawdown; its futures programs use an end-of-day trailing drawdown.
The5ers	Forex / CFDs	Offers a one-step program (Hyper Growth) among others	Hyper Growth publishes a 10% target with a 3% daily loss and 6% max drawdown.
Topstep	Futures	Trading Combine (single-phase evaluation)	Uses an intraday/end-of-day trailing Maximum Loss Limit plus a daily loss limit; the trail freezes once the account grows past a set point.

The practical takeaway: read the drawdown style carefully. A balance-based limit (fixed against your starting balance) behaves very differently from a trailing limit (which follows your equity up and can sit close behind your highs). Neither is universally better — it depends on how you trade.

How Orion RFX's free tools and Nebula can help

We build tools to take the guesswork out of the parts above — sizing, planning, and testing — without making any promise about outcomes.

• Free pass calculator & position-size tools. Our calculators turn the formula above into one input box: enter account size, risk %, stop distance and instrument, and they return your lot size and the exact money at risk, with the correct pip value handled for you. Outputs are computed from your inputs — they are a planning aid, not a prediction. Try the prop-firm pass calculator and the position size calculator.
• Nebula by Orion RFX. Nebula is a no-code algorithmic EA builder for MT4/MT5. Its genetic optimisation engine evolves strategies and deploys them as one-click Expert Advisors (tiers: Free, Starter, Pro, Ultimate). For an FTMO attempt it is useful for building and testing a rules-based approach where risk per trade is fixed and enforced by the EA, rather than left to in-the-moment discretion. Nebula does not guarantee passing any challenge and does not produce any specific result — it is a building and testing tool. (Note: this is "Nebula by Orion RFX", not the unrelated "Nebula Wizard/Nebula Bot" scalper.)
• Protocol 7 & mentorship. If you want a structured framework or direct guidance, our Protocol 7 framework and 1-on-1 mentorship with founder Ross Hayes focus on process and risk control — the things that actually keep you inside the rules.

Whatever tool you use, the discipline is the same: small fixed risk, a buffer in front of every hard limit, and a defined edge. Read the Risk Disclosure before trading a challenge.

Frequently asked questions

Risk reminder: Trading involves substantial risk and is not suitable for everyone. Past or hypothetical performance does not indicate future results. This guide is educational only. Please read our full Risk Disclosure.