Swing Trading Strategy Guide for Passing the FTMO

$100K Challenge
Introduction
Passing the FTMO $100K Challenge requires a solid trading plan that balances profit targets with strict risk
limits. This guide presents a comprehensive swing trading strategy tailored to FTMO’s evaluation
constraints. We focus on high-probability trades using multi-timeframe top-down analysis, executed during
the volatile New York session on a handful of major currency pairs. The strategy emphasizes disciplined
entry/exit rules, robust risk management, and trader psychology to navigate the challenge’s profit target
(10% gain) and loss limits (max 5% daily loss, 10% overall)1. By following this structured approach, a trader
can steadily achieve the profit objective while avoiding drawdown violations, all without the pressure of a
fixed time limit (FTMO now allows an indefinite period for the challenge2).

Figure: Overview of the swing trading strategy flow. The process begins with higher-timeframe analysis to identify
trend bias and key support/resistance levels. During the New York session, the trader monitors selected FX pairs for
price approaching those key zones. Upon seeing a valid entry trigger (e.g. a favorable candlestick pattern) on a
lower timeframe, a trade is executed with a predefined stop-loss and take-profit. The position is then actively
managed (stop moved to breakeven, partial profits taken if applicable) while respecting risk management rules.
Throughout, strict discipline is maintained to adhere to the plan and FTMO rules.

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FTMO Challenge Constraints and Strategy Goals
The FTMO $100K Challenge evaluates both profitability and risk control. Challenge Constraints: To pass, a
trader must achieve +10% profit on the $100,000 demo account without exceeding a 5% max daily loss
($5,000) or 10% max total loss ($10,000)1. (FTMO’s verification phase eases the profit target to 5%.)
Notably, as of 2024 FTMO removed the time limit on the challenge, so traders can take as long as needed to
hit the profit target2. However, a minimum of 4 trading days is required, and consistency is expected.
Strategy Goals: This swing trading plan is designed to align with those rules. We aim for steady growth with
minimal drawdown: risking only 0.5–1% of the account per trade to keep worst-case daily loss well under 5%.
The profit target of 10% will be pursued via high-R:R (risk-to-reward) trades — for example, aiming for a 2:1
or 3:1 reward-to-risk ratio on setups. At the same time, we avoid strategies that would violate FTMO’s rules
(no over-leveraging, no holding trades that risk hitting the loss limits). By focusing on quality swing setups
and prudent risk management, the strategy seeks to maximize the probability of passing while minimizing
the risk of a challenge-ending loss. The removal of the time pressure means the trader can be patient for the
right setups without rushing trades, a significant psychological advantage3. Overall, the goal is a sustainable
trading approach that not only passes the FTMO challenge but also builds habits for long-term success as
an FTMO-funded trader.

New York Session Focus and Pair Selection

This strategy concentrates on the New York trading session (primarily the morning overlap with London,

~8 AM to 12 PM EST) when market liquidity and volatility are highest4 5. During this period, major
currency pairs often experience substantial movement due to overlapping U.S. and European market
activity. Important U.S. economic news (e.g. NFP jobs data, Fed announcements) typically releases in the
early New York hours and can move markets significantly6 7. By timing our trading during this window,
we increase the chance that swing trades will initiate and gain momentum.

Pair Selection: We focus on a few major FX pairs that are highly liquid and active during New York: for
example, EUR/USD, GBP/USD, USD/JPY, USD/CAD (and possibly XAU/USD for gold traders). These
instruments tend to have tighter spreads and ample volume, which is advantageous for execution. Indeed,
when the US and European sessions overlap, “virtually any pair” can be traded with good liquidity, but it’s

9. The
best toUSD
stickistoinvolved
majors/minors
in ~85% and
of forex
avoid exotic pairs8
transactions10, so USD pairs naturally see a lot of action in New York. By specializing in a small selection of
pairs (say 2–4 pairs), a trader can become familiar with their behavior while ensuring enough trading
opportunities. For instance, one might choose EUR/USD and GBP/USD for their volume and trends, plus
perhaps USD/JPY or USD/CAD for additional setups. All these pairs respond to U.S. economic releases and
typically produce clear swing movements during the U.S. morning. Focusing on the New York session also
means no need to trade overnight or during low-liquidity times – aligning with FTMO’s Swing account
option (which permits holding trades overnight and over weekends for swing traders11) but generally our
strategy aims to capture multi-day moves without excessive swap costs. By filtering trades to New York
hours, we participate when our selected pairs are most likely to move decisively, giving each trade a better
chance to reach its profit target within a reasonable time.

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Technical Setup Criteria (Top-Down Analysis)
Our strategy begins with a Top-Down Analysis to align each trade with the prevailing market context12. This
means we analyze multiple timeframes, starting from higher to lower, to identify high-probability swing
setups. Specifically, we use a Higher Timeframe (HTF) like the daily or 4-hour chart to define the trend
direction and mark key support/resistance levels or supply/demand zones. Then we zoom into a Lower
Timeframe (LTF) (such as 1-hour or 30-minute) to pinpoint precise entry opportunities. Using a roughly 4:1 to
6:1 ratio between timeframes (e.g. daily → 4H → 1H) is a practical approach for swing trading13 – the higher
chart shows the big picture trend and major levels, the medium chart (4H) shows intermediate structure and
pullbacks, and the lower chart (1H) shows detailed price action for entries.

For example, on the daily chart you might observe an uptrend with price pulling back toward a significant
support zone (perhaps a prior swing low or Fibonacci retracement level). That daily support forms the
context for a potential long trade. You would then drop to the 4H chart to monitor how price behaves as it
nears that $1.3200 support – is the down-move slowing? Are there signs of a base or reversal pattern
forming above the level? Finally, on the 1H chart, you’d look for a concrete entry trigger right at the
support (e.g. a specific candlestick formation or break of a minor downtrend line) to time your entry.

Figure: Top-down technical analysis across multiple timeframes. Top: Daily chart showing an uptrend and a key
support around 1.3200 (blue dashed line) identified as a buy zone. Middle: 4H chart zooming in on the pullback –
price declines into the support and starts basing. The daily support level is clearly respected, and bearish
momentum slows. Bottom: 1H chart providing the entry trigger – a bullish reversal pattern (e.g. double bottom or
a strong engulfing candle) appears at the support, signaling a potential swing low. The arrow indicates the point
of entry once lower-timeframe structure shifts bullish. This top-down approach ensures the trade is taken in the
direction of the higher timeframe trend and at a location of high confluence (support), improving the probability
of success.
Several technical criteria must align before a trade is taken: - Trend Bias (Higher TF): Determine if the
broader trend is up, down, or ranging. We generally prefer to trade in the direction of the daily trend

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unless there is a compelling reversal signal. For instance, if daily trend and 4H structure are making higher
highs and lows (uptrend), we’ll look for swing pullbacks to buy; in a downtrend, we look for rallies into
resistance to sell. Avoid counter-trend trades unless at extreme key levels with clear confirmation. - Key
Levels: Mark major support and resistance zones on the higher timeframe. These could be prior swing
highs/lows, weekly pivots, or fib retracement levels. Our strategy waits for price to reach these key zones
before considering a trade – we want to buy near support in uptrends and sell near resistance in
downtrends. Confluence of levels (e.g. support aligning with a 50% Fibonacci and the 200 EMA on daily) adds
confidence. - Price Action Signals (Lower TF): As price hits a watch level, monitor for bullish or bearish
candlestick patterns and market structure shifts on the 1H/30M chart to trigger the entry. Examples of
bullish signals: a hammer or bullish engulfing candle off support, a double bottom, or a break above a
minor 1H swing high indicating buyers stepping in. These patterns indicate that the
15. It’s not enough
anticipated reversalthat
or continuation
a level holds;iswe
actually
need occurring14
confirmation from price action that momentum is turning in our favor. This avoids “catching a falling knife” –
we let the market prove the level is valid. - Volume/Session Timing: Ideally, the entry signal should occur
during active market hours (New York morning) for momentum. If a pattern appears in off-hours with low
volume, be cautious as it may be a false signal. - Alignment of Indicators (Optional): While this strategy is
primarily price-action based, you can incorporate one or two indicators for confirmation. For instance, an
oscillator like RSI on the 4H or 1H can help identify divergences or overbought/oversold conditions at the
key turn areas. (A bullish divergence – price makes a lower low while RSI makes a higher low – near our
support zone can reinforce the long setup16.) However, indicators are secondary; the primary triggers are
price patterns and level confluence.

By requiring multiple conditions to align, we filter out low-quality trades. The top-down methodology
keeps us trading with the trend and at logical price areas, essentially stacking the odds in our favor before
we risk capital.

Entry Rules

With the groundwork laid by higher timeframe analysis, we now define the precise entry rules on the lower
timeframe chart. The goal is to enter only when we have a clear technical signal that a swing move is starting,
thereby improving our entry price and reducing risk. Here are the entry criteria and rules:

• Candlestick or Price Pattern Trigger: A concrete bullish or bearish pattern must form at the key
level we identified. Examples:
• Bullish entry (long): A strong bullish engulfing candle wrapping the prior candle’s range, signaling
a reversal from down to up momentum. Bullish engulfing patterns are especially powerful after a
down swing into support – they indicate renewed buying interest15. Other bullish triggers could be
a hammer candlestick (with a long lower wick probing support and a close near the highs) or a
morning star 3-candle pattern. For a short trade at resistance, a bearish engulfing or shooting star
would be the counterpart.
• Chart pattern trigger: Small double bottoms or double tops on 15M/1H, tiny head and shoulders
patterns, or wedge breakouts can also serve as entry triggers once price hits our zone. For instance,
if price dips to support and forms a double bottom with a higher low, breaking above the
intermediate high between them would confirm buyers taking control – a signal to go long.

• Moving average crossover or oscillator extreme (optional): As an extra filter, one might require
that the 14-period RSI on 1H is rising from oversold (<30) for a long, or that a short-term moving

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 average has crossed above a longer MA, before entering. These can add confidence but are not
strictly necessary.

• Entry Execution: Once a valid signal closes, we enter at market or on a slight pullback. It’s important
not to hesitate once conditions are met – the edge comes from taking every valid setup. For a
long, enter as soon as the bullish pattern is confirmed (e.g., on the close of the engulfing candle or
break of its high). For a short, enter on the close/break of a bearish signal candle. Do not chase the
price if it runs too far beyond the entry signal; if the candle is unusually large and skews the risk/
reward, you might set a limit order nearer to the support/resistance for a small retrace (if such a
retrace is common for that pair).

• Initial Stop Loss Placement: Immediately upon entry, place a stop-loss order to cap risk. The stop
goes beyond the recent swing extreme that invalidates the trade:

• For a long trade, stop is a few pips below the support or below the low of the entry trigger candle
(whichever is lower). This ensures that if the trade fails and price truly breaks support, you exit
quickly. The buffer might be ~5-10 pips below the level (adjust for pair volatility).

• For a short trade, stop is a bit above the resistance or trigger candle’s high.
This way, each trade’s risk is predefined (typically 50–100 pips or whatever 1% of the account
corresponds to, depending on pair volatility). We never enter without a stop – capital preservation
is priority.

• Position Sizing: Calculate lot size such that the distance from entry to stop represents your planned
risk (for example 0.5% or 1% of account). If 50 pips = $500 risk, on a $100k account that’s 0.5%; pick
lot size so 50 pips equals $500. This ensures consistent risk per trade. We use FTMO’s provided lot
size calculator or a simple formula: Lots = (Account * Risk%)/((Stop in pips) * pip
value). Correct position sizing is critical to stay within FTMO’s drawdown limits.

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Figure: Example of an entry trigger on a candlestick chart (1H timeframe). After a sustained dip, a bullish engulfing
candlestick (green) forms right at a support level (blue dashed line), engulfing the previous red candle’s range15. This
signals a potential reversal upward. The trader enters long at the close of the engulfing candle (green up-arrow). A
stop-loss (red down-arrow) is placed just below the support line (e.g. 1.3150, a few pips under the recent low) to limit
risk. A take-profit target (marked by the green “X”) is set higher, in this case aiming for roughly 2× the risk distance,
up near a resistance around 1.3300. The dashed green arrow illustrates the intended risk/reward: risking roughly 50
pips to gain 100+ pips (1:2 R:R). Such candlestick signals at key levels provide clear, rules-based entries for the
strategy.
A few additional entry considerations: - No Trade if Criteria Not Met: If price reaches our level but no valid
trigger appears (e.g., it just consolidates or slices through the level without reversal patterns), we simply do
nothing. Patience is key – many times, the best trade is no trade. We only deploy capital when our edge
(confluence + confirmation) is present. - Avoid Choppy Markets: If the pair is in a choppy, sideways range
without clear trend or momentum (e.g., whipsawing around on 5M charts), be cautious. It’s better to skip
entries when technical signals are mixed. Wait for a clean breakout or a strong price action cue. - News
Consideration: Big scheduled news can cause whipsaws that trigger stops. If a major news release (like
FOMC or NFP) is minutes away, either avoid entering right then or be prepared for volatility. Some traders
will pause entries ~15 minutes before high-impact news. However, post-news can actually provide entries as
well (for instance, an exaggerated spike into a level that immediately reverses can be an opportunity). Use
discretion and understand the news risk if trading around those times. By strictly following these entry rules,

we ensure each trade starts with a tactical advantage: the wind at our
back (trend), a cushion below/above (support or resistance), and confirmation that the market is indeed
reacting to our level. This disciplined approach to entries prevents impulsive trades and builds confidence in
each position taken.
Exit Rules and Trade Management
Planning how to exit trades is just as important as how to enter them. Our strategy uses predefined profit
targets and stop-losses from the outset, but we also employ active management to adapt to market
conditions. The objectives are to: lock in profits when available, let winners run reasonably, and cut losses or
trailing stops to protect capital. Below are the exit rules and management techniques:

• Primary Exit (Take-Profit Target): Each trade should have a clear take-profit (TP) level set in
advance, based on the chart structure. Typically, the TP is positioned at the next significant opposing
level. For a long trade, that could be a resistance or prior swing high on the higher timeframe. For a
short, it might be a support or prior swing low. We also ensure the target yields an acceptable
reward-to-risk ratio (we aim for trades with at least2:1 R:R or better17). For example, if risking 50
pips, target at least 100 pips. Setting the TP at a logical level helps because price often stalls or
reverses there. Once price reaches near the TP, we watch price action closely – if signs of reversal
appear early, we may manually close a bit before the target to be safe. Otherwise, let it hit the
predefined TP and take profit automatically.

• Partial Profit and Scaling Out: It can be prudent to take partial profits at interim points, especially
if the trade has moved significantly in your favor. One common approach: close 50% of the position
at +1R or +2R, then trail the stop on the remainder. This locks in some profit and makes the rest
essentially “free-roll.” For instance, you long at 1.3200 with stop 1.3150; once price hits 1.3300 (+100

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 pips, ~2R), you could take off half and move the stop on the remainder to breakeven (1.3200). This
way you’ve banked profit and the worst-case on the remainder is a scratch trade. Partial profits can
help psychologically as well by realizing gains and reducing fear of round-tripping a winning trade.

• Stop Management: We never widen our stop-loss – once set, the initial stop is only moved in the
direction of the trade. There are a few stop adjustment tactics:

• Break-even Stop: After the trade goes sufficiently in profit (commonly when it reaches +1R in profit),
move the stop to the entry price (break-even). This eliminates risk on the trade. However, avoid
doing this too soon; if done prematurely, normal noise might stop you out before the real move. It’s
often best to wait until price has decisively moved away from your entry (perhaps when it hits the
first trouble area or a fixed threshold like +0.5% gain) before moving to B/E.
• Trailing Stop: As the trade continues in your favor, you can trail the stop-loss to protect profits. This
can be done manually by stepping the stop behind new swing highs/lows or using a mechanical rule
(e.g., trail 50-pip behind current price or use a chandelier exit indicator). For example, in an uptrend
trade, each time price makes a new higher low on 1H, you could move your stop just below that
higher low. This way, if the trend reverses, you exit with the bulk of gains intact. A popular method is
trailing by previous 1-2 candles’ lows for longs (or highs for shorts) once in strong profit.

• Time-based Stop/Exit: Because this is swing trading, we generally hold positions for 1–5 days,
sometimes a couple of weeks if trend persists. However, if a trade isn’t working (price is just drifting
sideways near entry) for multiple days, consider closing it and freeing margin for better setups. Also,
before weekends, decide if you will hold over the weekend. FTMO Swing accounts allow weekend
holding11, but be mindful of potential gaps. If uneasy, close on Friday and look to re-enter the next
week if the setup is still valid.

• Manual Exit on Invalidations: If at any point the original trade thesis is clearly invalidated by new
information, exit immediately, even if stop hasn’t been hit yet. For instance, say we entered long on
a hammer candle at support, but soon after, a huge bearish candle on high volume slices through
that support – that’s a sign to abandon the trade early, because the market has negated the signal.
Another example: you’re in a trade and surprise news comes out against your position (like a central
bank comment strengthening the currency you’re short on) – sometimes it’s wise to cut the trade
rather than pray the stop holds. Exiting early in these cases can save a lot compared to waiting for
the full stop loss.

• Handling Fast Moves: Occasionally, you’ll get a very fast move in your favor (perhaps due to a news
release that happens to push your trade). If price reaches the profit target far quicker than
expected, you might tighten up stops aggressively or take profits early, since such fast spikes can
retrace quickly. Secure the win – you can always re-enter if the trend continues.

Effective trade management means finding the balance between letting winners run and not letting them
turn into losers. A good practice is to decide your management rules in advance (possibly writing them in
your plan). For example: “If price hits +2R, move stop to +1R and let it run to target or beyond.” By pre-
defining, you reduce emotional decision-making in the heat of the moment.
Finally, be mindful of overnight swaps and news for multi-day holds. Swap fees can accumulate for each
day a position is held and may eat into profits or deepen losses over time18. Our swing strategy expects to

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hold trades for days, so factor in the cost of carrying the trade (most USD pairs have minimal swap, but
exotic pairs can have large negative swap). Also, check the economic calendar – if a key news event (like
a central bank decision) is upcoming and you have profit, you might secure some profits or tighten stops
beforehand to avoid volatility.
By following these exit rules, we aim to maximize gains on winning trades and minimize losses on
losing ones, which is the formula for profitability. A disciplined approach to exiting – neither greedy
(holding for unrealistic targets) nor fearful (cutting winners too quickly) – will produce consistent results
over many trades.
Risk Management Plan
Robust risk management underpins this entire strategy. Even a great trading system can fail if risk is not
controlled, especially under FTMO’s strict loss limits. Therefore, we adhere to a set of risk rules to ensure
longevity and protect the account from drawdowns:

• Risk Per Trade: Limit risk to 0.5% – 1% of the account per trade19. For the $100K account, that
means at most $500–$1000 risked per trade. Conservative traders might risk only 0.5% until they
build a cushion. This low risk per trade ensures that even a streak of losses won’t violate FTMO’s 5%
daily or 10% overall drawdown rules. For instance, at 1% risk, the worst-case of 5 losing trades in one
day is -5% (hitting daily limit); at 0.5% risk you could technically lose 10 trades (~-5%) in a day before
hitting the cap – which is unlikely if the strategy has a reasonable win rate. Keeping risk small might
feel slow profit-wise, but it prevents emotional decision-making and “challenge failure” panic after a
few losses.

• Maximum Daily Loss Rule: FTMO’s rule is max $5,000 drawdown in a day on a $100K account1.
We incorporate this by setting an internal daily loss limit of ~3% (or even 2%) for ourselves, which
is below FTMO’s 5%. If hit, we stop trading for that day. In practical terms, if risking 1% per trade, a
3% daily max means no more than 3 losses in a day – a rare sequence if the strategy has an edge. By
stopping after a few losses, we prevent a spiraling loss day. Likewise, we avoid stacking too many
trades at once that could collectively exceed 5% if they all hit stops. For example, if we have two
trades open concurrently, each might be 0.5% risk so that worst-case both hitting stop = -1%. We are
cautious with correlated trades (e.g., EUR/USD and GBP/USD moving similarly) – if taking multiple
positions, consider the combined exposure.

• Reward-to-Risk and Win Rate: The strategy targets trades with high R:R (ideally 2:1 or 3:1). This
means a relatively modest win rate can still yield net profits. For instance, even a 40% win rate is
profitable if winners average 2.5× losers. Our backtesting suggests this strategy can achieve ~50%
win rate with ~2.5:1 avg R:R, which would be very FTMO-friendly. The profit factor (total profits /
total losses) is more important than win rate alone. By being selective and only taking trades that
meet our criteria, we avoid low-R:R “grind” trades. Each planned trade should have a clear edge such
that over many occurrences, the math works out favorably. Remember, you only need to hit +10%
once (without hitting -10%) to pass – a couple of big winners can offset many small losers.

• Equity Curve Management: One technique is to reduce risk slightly after a series of losses and
consider increasing risk slightly when in profit (since FTMO’s max loss is fixed to initial balance,
profits essentially act as a cushion20). For example, start at 0.5% risk; if you gain say 5%, you might

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 bump up to 1% risk to push toward the target knowing even a loss only draws you back a bit.
Conversely, if you lose 3-4 trades in a row (down ~2%), perhaps stop trading for the day and
resume next day at 0.5% risk until you regain confidence. However, any increase in risk should
still keep worst-case scenarios within limits. Many FTMO passers actually keep a steady low
risk throughout – consistency often trumps trying to optimize risk on the fly.

• Emotional Control and Discipline: Adhering to the risk plan means no revenge trading, no
impulsively adding to losing positions, and no removing stops. Each of these is a challenge killer. We
commit to never risk more than planned on any trade – even if we feel “sure” about a setup, we do not
violate the 1% cap. Similarly, we won’t double-down on a losing trade to “earn it back.” Every trade is
taken with the mindset that it could be a loser, and that’s okay because it’s limited to 1%. By
normalizing small losses as part of the game, we remove the temptation to break rules. As one
FTMO trader put it, “I risk a fixed percentage (0.5–1%) and always use stop losses. I ensure my
reward-risk is at least 2:1, and I limit daily/weekly losses to stay within FTMO’s rules. I also
avoid overtrading and revenge trading.”19. This encapsulates the risk discipline required.

Figure: Equity curve simulation demonstrating the risk management approach. In this hypothetical sequence of 10
trades, we risk 1% per trade with a 50% win rate and 1:3 risk:reward. Losses are -1% and wins are +3%. The blue line
shows the account balance progressing from $100K to $110K (10% profit) over the trades. Notice the drawdowns are
modest – after two losses, the account was -2% (well under the 5% daily limit) before wins pushed it up17. Red
dashed lines mark FTMO’s max daily loss (5%) and max total loss (10%) thresholds for reference. By keeping risk low
and reward high, the equity stays in a safe range and steadily climbs. This underscores how a few good wins can
achieve the profit target without nearing the drawdown limits, provided strict risk management is in place.

• Journal and Review: Part of risk management is continuously learning from trades. We keep a
trading journal logging each trade’s rationale, risk %, outcome, and any deviations from the plan.
This helps identify if we’re inadvertently taking on too much risk or if certain setups yield poorer
outcomes. For instance, you might find trades on a certain pair or during a certain time tend to be

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 losers – that insight can refine risk allocation or avoidance of specific conditions. FTMO provides
detailed metrics via their account MetriX; use those to review daily loss usage, etc., and adjust if
needed.

In summary, the risk management plan’s core is: Always protect capital. We aim to survive to trade another
day, because only with survival comes the opportunity to eventually pass the challenge. By sizing positions
conservatively and respecting loss limits, we ensure that no single trade (or even cluster of trades) can
knock us out. This creates a stable platform from which skill and strategy can play out.
Psychology and Discipline Tips
The psychological aspect of trading, especially under the pressure of a prop firm challenge, cannot be
overstated. Many traders fail FTMO not due to lack of strategy, but due to mental mistakes – fear,
greed, impatience, or deviation from the plan. Thus, cultivating strong trading psychology and
discipline is a key part of our strategy. Below are tips and practices to maintain a clear mindset and
disciplined approach:

• Follow the Plan Religiously: By now, you have a well-defined strategy – trust it. Do not deviate on a
whim. Every rule we’ve laid out (entries, stops, risk%) should be treated as sacrosanct. If the plan
says wait for a 1H engulfing at support, then wait – don’t jump in early because you’re anxious to
trade. As one successful FTMO trader said, “I have a detailed trading plan ... I follow it strictly
because consistency is key, and deviating from the plan usually leads to emotional decisions and
losses.”21 Discipline is your edge: over hundreds of trades, sticking to a proven system will yield
the expected results, whereas impulsive deviations will skew your edge.

• Keep a Trading Routine: Having a routine reduces stress and emotion. For example, you might do a
morning analysis, identify potential setups for the day, set price alerts, and then only look at the
market when alerted (to avoid over-trading out of boredom). During the New York session, focus on
execution – if X happens, I do Y, as per plan. Outside of session hours, do not obsessively watch charts.
This downtime is important to avoid mental fatigue. A routine might also include regular breaks –
say you take a short walk or step away each hour to stay fresh. If you hit your profit for the day or
week, know when to stop trading and enjoy a break. Structuring your trading day helps prevent
random, emotion-fueled decisions.

• Emotional Control: Trading will inevitably produce excitement, fear, frustration, even euphoria at
times. Work on managing these emotions so they don’t influence your actions. If a trade is lost,
resist the urge to immediately “win it back” (that’s revenge trading – strictly prohibited by our rules).
If you feel frustration after a streak of losses, step away for a few hours or the rest of the day to cool
off. Conversely, after a big win or series of wins, guard against overconfidence. Remind yourself that
even the next trade is just one of the probable outcomes in your plan, and stick to the process. Some
traders find meditation, journaling feelings, or exercise can help maintain psychological equilibrium.
The key is to stay calm and composed regardless of recent outcomes – the classic trader’s mindset
of being “down by 5 or up by 5, it’s all the same”.

• Avoid Overtrading: It can be tempting to take marginal setups or trade out of boredom, especially
when you’re sitting in front of the screen for hours. Overtrading usually leads to sloppy losses and
stress. By sticking to our defined session and pair focus, and having patience for quality setups, we
naturally curb overtrading. If you find yourself wanting to trade when there’s no valid signal,

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 implement a rule: no touching the platform unless criteria are met. Sometimes, to enforce this,
traders remove their ability to easily trade – for example, by closing the trading app or walking
away from the computer after placing limit orders. Remember, quality over quantity – one
good trade is better than five mediocre ones. As the saying goes, “Don’t just do something; stand
there!” when conditions aren’t right.

• Leverage FTMO Resources: FTMO actually provides support for trader psychology (performance
coaches, etc.) – take advantage of these if needed. They also have an account analysis tool that can
pinpoint where you deviated. For instance, if metrics show you tend to lose more after a big win,
that’s a clue to be extra cautious after wins. Self-awareness is crucial: identify your personal
weaknesses (e.g., inability to accept being wrong and closing a trade, or hesitancy to pull the trigger)
and work on them continuously.

• Healthy Lifestyle: This might seem unrelated, but trading performance is tied to overall well-being.
Ensure you’re getting enough sleep, especially if waking up early for the New York session. Fatigue
can greatly impair decision-making. Maintain good nutrition and take care of your physical health –
it’s easier to stay disciplined and focused when you feel good. Also, manage life stress so it doesn’t
carry into trading. In short, treat yourself like an athlete in competition: mental sharpness and
emotional stability are supported by healthy habits.

• Positive Mindset and Growth: Approach the challenge as a learning experience as much as a
money-making test. Keep a growth mindset – every trade, win or lose, is feedback to learn from, not
a reflection of your self-worth. Losses are simply the cost of doing business, and even a failed
challenge can be retaken (FTMO allows free retries if you were profitable and only failed by not
hitting target, or you can try again later). This removes some pressure. Visualize success but also
accept that drawdowns will happen. The key is how you respond. One FTMO trader noted that
discipline and emotional control under pressure were crucial to eventually passing22. Celebrate small
victories (like perfectly following your rules for a week), not just monetary gains. Build confidence by
doing the right things, and the results will follow.

In essence, psychology is the glue that holds your technical strategy and risk management together. By
being disciplined and maintaining emotional equilibrium, you ensure that you actually execute the strategy
as designed. A helpful mantra: “Plan the trade and trade the plan.” Another: “One trade at a time.” Focus on
execution excellence over outcome. If you can do that consistently, passing the FTMO challenge becomes a
byproduct of good trading habits. As one FTMO graduate advised, “Be disciplined and follow your strategy.
Psychology plays a massive factor so make sure you keep yourself physically and mentally fit. Always work towards
becoming 1% better each day.”23 Such incremental improvement and steadfast discipline are what carry
you over the finish line.
Example Trade Scenario

Let’s walk through an illustrative trade scenario from start to finish, applying all the elements of our
strategy. This will demonstrate how analysis, execution, and management come together in practice.

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Assume we’re monitoring EUR/USD, which has been in an uptrend on the daily chart but recently pulled
back.

• Analysis: On the daily timeframe, EUR/USD is in an uptrend with higher highs and higher lows. It
has retraced about 50% from the last swing high and is approaching a strong support around 1.3200
(a level which was a prior resistance and also near the 100-day moving average, for example). Our
bias is to look for a long entry if price confirms a bounce at this support. The 4H chart shows a
steady decline into 1.3200, but with slowing momentum (smaller candles as it nears support and
possibly an RSI divergence building). We mark the 1.3200 support zone and set an alert for bullish
signals.

• Entry Trigger: During the New York morning, price dips slightly below 1.3200 (running some stops),
then springs back above it. On the 1H chart, at approximately 10:30 AM EST, we get a bullish
engulfing candle closing back above 1.3200. It engulfs the range of the previous two 1H candles
and closes near 1.3230, indicating a strong rejection of lower prices. This occurs on increased
volume. We interpret this as our go signal – a swing low may be in place at 1.3190. According to our
rules, this is a valid entry trigger.

• Execution: We enter long at 1.3230 as soon as that bullish engulfing candle closes. Our stop-loss is
placed at 1.3150, a safe distance (about 80 pips) below the 1.3200 support and below the actual
swing low of 1.3180. This is within our 1% risk (let’s say 80 pips is $800 on a standard lot, so we take
~1.25 standard lots to risk ~$1000, which is 1% of $100K). Our take-profit target is set at 1.3350,
just below a daily resistance around 1.3370 (the previous swing high). That gives roughly +120 pips
for +1.5R reward (we expect maybe this swing will form a lower high if the uptrend is weakening, so
we conservatively aim before the prior high). The R:R is actually a bit lower than ideal here (~1.5:1),
but we anticipate the move could extend beyond that, and we plan to actively manage (perhaps trail
for more). Alternatively, we could set an initial TP at 1.3350 and a secondary target further up if
scaling out.

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Figure: Example trade execution on a 4H chart. EUR/USD was in a downturn (red candles) approaching the marked
support at 1.3200. A bullish reversal is signaled at the yellow star: the pair prints a strong bullish candle off support,
indicating a swing low. The trade is entered long (green ^ arrow at 1.3230). The stop-loss (red v marker) is placed
below the support at 1.3150, protecting against a deeper drop. As anticipated, the price bounces and begins an
uptrend of higher highs/lows on 4H. The take-profit (green x at 1.3350) is hit as price rallies into
the next resistance. The green line/arrows illustrate the trade trajectory from entry to exit. Through this scenario
we see the strategy in action – higher-timeframe support provided context, a lower-timeframe bullish signal
provided entry, and sound risk management defined the stop and target in advance.

• Trade Management: After entry, the trade initially fluctuates around 1.3230–1.3250 for a few hours
(perhaps as London session winds down). But we stay patient as no invalidation (price holding above
1.3200). By the next day, momentum picks up – price breaks above 1.3300. At this point, we’re about
+70 pips in profit. We decide to secure the position: we move the stop-loss up to breakeven
(1.3230), eliminating risk. We also take partial profit by closing 50% of the trade at ~1.3300 (a round
number and minor intraday resistance). This books roughly +70 pips on half the position (~0.5%
gain), and leaves the rest to run with no risk. As expected, once the 1.3300 minor resistance is
cleared, EUR/USD accelerates higher, boosted by some positive US equity sentiment that afternoon.
Our trailing stop on the remaining half is now placed at 1.3260 (just below a higher low on the 4H
chart), locking in +30 pips on that portion.

• Trade Exit: By the next day’s New York session, EUR/USD reaches 1.3350, close to our final target.
We observe price action – it starts stalling with some long upper wicks on 1H candles, suggesting
that the resistance is being felt. Rather than getting greedy, we take the prudent route and close the
trade fully at ~1.3340 (a hair below our TP) as sellers begin to appear. This exit secures about +110
pips on the remaining half. Overall, the trade yielded: +70 pips on half and +110 pips on half, for an
average of +90 pips, while risking 80 pips. That’s roughly +1.1R, or about +$900 (0.9%) gain on the
account – a solid winner that is within our plan’s expectations. We log the trade in our journal, noting
what went well (patience for entry, good partial profit timing) and any lessons (perhaps we note that
target could have been extended as momentum was strong, but we stuck to plan and that’s fine).

• Reflection: This example encompassed multiple days, demonstrating the swing nature of the
strategy. It also shows how active management helped improve outcome (had we not moved stops
or taken partials, the trade still would have been a winner hitting TP, but securing along the way
reduced stress and guaranteed profit). The key takeaway is that the process – from analysis to
execution to exit – was methodical and rule-based. By following the strategy, we capitalized on a
high-probability setup while containing risk. In a real FTMO Challenge scenario, a trade like this
would contribute nearly +1% toward the 10% target. A handful of such trades, with minimal losses in
between, is the recipe for passing.

Every trade will be different, but the principles remain: plan the trade and trade the plan. Through this
scenario, you can see how each component (session timing, top-down analysis, precise entry, risk control,
and management) plays a role in making the strategy effective.

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Conclusion
Passing the FTMO $100K Challenge is a significant achievement, requiring a blend of sound strategy, risk
management, and psychological fortitude. This guide has laid out a professional-grade swing trading
strategy tailored to those requirements. To recap:

• We focus on quality swing trades during the high-volatility New York session on major pairs, using
multi-timeframe analysis to align with the dominant trend and key levels.
• We execute with strict entry and exit rules – waiting for clear confirmations like candlestick
patterns, setting logical stops and ambitious but attainable targets, and managing trades proactively
(moving stops, partial profits) to balance risk and reward.
• We enforce a comprehensive risk management regime, risking only 0.5–1% per trade, thereby
ensuring that no string of losses can knock us past FTMO’s drawdown limits. This creates a smooth
equity curve and keeps us in the game long enough for our edge to play out24.
• We continuously practice discipline and psychological control, adhering to the plan and
maintaining consistency. By avoiding emotional pitfalls and focusing on execution, we effectively
become immune to the pressure of the profit target. As many FTMO traders emphasize, sticking to
the strategy and managing oneself are the real keys to success23.

In preparing to apply this strategy, it’s wise to backtest and forward test it on demo accounts or FTMO’s
free trial. This will build confidence in the rules and help fine-tune any pair-specific nuances. Pay attention
to any patterns in your performance metrics; for instance, if you notice your biggest losses come at a
certain time or circumstance, address that in your plan. The strategy is robust, but it’s your execution that
makes it profitable. Remember that consistency over intensity wins the FTMO Challenge. It’s better to have

steady, smaller
gains with controlled risk (and perhaps take a bit longer) than to swing for fences and jeopardize the
account. With the indefinite time allowance now, there’s truly no rush – focus on capital preservation and
incremental gains. A 1-2% average return per week with low drawdown is more than enough to reach 10%
in a couple of months, well within a comfortable margin. Finally, maintain a positive, professional mindset.

Treat this challenge as you would a job: follow your

trading plan diligently, keep records, and continuously improve. If you hit roadblocks, step back and analyze
rather than react. Every trader’s journey includes setbacks; what separates those who eventually get funded
is persistence and the ability to adapt and learn.
By using the strategy and guidelines outlined in this guide, you put yourself in the best possible position to
succeed. Discipline, patience, and confidence will be your companions throughout the process. Good luck
on your FTMO Challenge – stay focused and trade well. With the right approach, that $100K FTMO account
can soon be yours to trade, marking the start of your professional trading career!25

1 20 FTMO Review - Rules, Pros & Cons (2025)

https://mdfinancialskills.org/ftmo-review/

2 3 18Trade without any time limit and take as long as you want to pass! | FTMO
https://ftmo.com/en/trade-without-any-time-limit-and-take-as-long-as-you-want-to-pass/

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 4 5 6 7 8 9 10When Can You Trade Forex: New York Session - Babypips.com
https://www.babypips.com/learn/forex/new-york-session

11FTMO Swing account type | FTMO

https://ftmo.com/en/faq/ftmo-swing-account-type/

1213Top Down Analysis: Master Multi-Timeframe Trading Strategy for Forex, Crypto & Stocks — Mind
Math Money
https://www.mindmathmoney.com/articles/top-down-analysis-in-forex-crypto-and-stock-trading-price-action-amp-market-
structure

14 15 16 24The Key to Successful Swing Trades: Candlesticks and Oscillators

https://www.investopedia.com/articles/trading/06/swingtrades.asp

171921222325“Discipline and emotional control are crucial” | FTMO

https://ftmo.com/en/discipline-and-emotional-control-are-crucial/

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