🛑 FTMO Exposed: Hidden Rules You Must Know!

Summary

This video serves as a guide to avoid common pitfalls in the FTMO trading challenge. It emphasizes the importance of adhering to FTMO's rules, especially after funding an account, as violations can lead to account termination. The video illustrates the risks of trading around news events and holding positions overnight, highlighting the differences in rules between the evaluation period and funded account stages. It provides tips on using an economic calendar and setting reminders to avoid rule violations, ensuring traders are well-prepared for the challenges ahead.

Takeaways

• 📈 The video discusses common pitfalls in the 'FTMO Challenge', particularly the differences between the rules during the evaluation period and when trading with a fully funded account.
• 🚫 It's crucial to be aware of the restrictions on trading around news events after the funded account stage; violating these can lead to account termination.
• 📊 Trading during the evaluation period (stage one and two) allows for more flexibility, but fully funded accounts have strict rules about trading during news events that can cause significant price movements.
• ⏰ Traders should regularly check the economic calendar and set reminders to avoid trading during restricted times, especially before important news releases.
• 📉 The importance of having stop-loss orders in place to prevent significant drawdowns from a single trade is emphasized, as is the risk of not adhering to trading rules around news events.
• 💡 The video provides a strategy example, illustrating how to trade based on Fibonacci levels and time frame analysis, while also highlighting the risks of not considering news events.
• 📝 It's advised to review the FTMO FAQ and trading rules thoroughly to understand the restrictions, especially the specific rules about trading during news and holding positions overnight.
• 🌐 The video mentions that different asset classes, such as Forex, indices, and cryptocurrencies, have different trading rules and restrictions, which must be understood to avoid rule violations.
• 🔒 Holding positions over weekends or during unexpected market closures can result in account termination if not managed according to FTMO's specific guidelines.
• 📋 The necessity of checking for special announcements or trading updates that might affect trading rules is highlighted, as these can change the typical trading allowances.
• 🛑 The video concludes with a reminder to be vigilant about the rules, especially after passing the initial stages of the FTMO Challenge, as the funded account stage presents a different set of challenges and potential pitfalls.

Q & A

What is the main focus of the video?

The video focuses on helping viewers avoid common pitfalls and rules violations when trading on a fully funded account, especially during the transition from the evaluation period to actual funded trading.

Why is it important to be cautious after passing stages one and two of the trading challenge?

After passing stages one and two, the rules change, and traders need to be aware of these changes to avoid costly mistakes that could lead to the termination of their trading account.

What is a common trap that traders can fall into when trading with a fully funded account?

A common trap is trading around news events without realizing that the rules for trading during news events are different once a trader has a fully funded account.

What is the significance of the 38.2 FIB level mentioned in the script?

The 38.2 FIB level is a Fibonacci retracement level that traders use to identify potential support or resistance levels in the market, which can be used for entry or exit points in trades.

Why should traders be cautious about economic news events when they have a funded account?

Economic news events can cause sudden and significant market movements that may affect open trades. Trading during these events is restricted for funded accounts to prevent large losses.

What is the recommended action for traders who find themselves with an open position during a news event?

The best action is to remove stop loss and take profit orders to prevent automatic trades during the volatile period, hoping that the market doesn't move against the position significantly.

What are the restrictions on trading during news events for a funded account?

For a funded account, no new trades can be executed or existing trades closed within a two-minute window before and after the news release. This includes opening or closing pending orders, stop losses, take profits, or market executions.

What is the difference between a regular funded account and a swing account in terms of trading during news events?

A swing account allows for more flexibility, including trading during news events and holding trades over the weekend, which is not permitted in a regular funded account.

Why is it crucial to check the economic calendar and set reminders for news events?

Checking the calendar and setting reminders helps traders avoid trading during restricted news events, thus preventing potential rule violations and account termination.

What should traders do if they want to hold positions overnight or over the weekend?

Traders should ensure they are using a swing account or check the trading rules and updates to avoid violating overnight holding restrictions, which can differ based on market and asset type.

What is the recommended strategy for traders to avoid rule violations and protect their trading accounts?

Traders should review the rules thoroughly, stay updated with trading updates, use the economic calendar to set reminders for news events, and consider requesting a swing account if they wish to hold trades over certain periods.