Strategies/FVG (Fair Value Gap)/FTMO

How to Trade FVG (Fair Value Gap) on FTMO

hours holds2-stepExcellent fit

FVG (Fair Value Gap) on FTMO is rated excellent fit. There are no major rule conflicts. FTMO offers 4 rules that actively support this strategy. Recommended timeframes: 5m, 15m, 1H, 4H.

About FVG (Fair Value Gap)

Targets imbalances in price where a three-candle sequence leaves an unfilled gap. Traders wait for price to retrace into the FVG zone before entering in the direction of the initial displacement move. Often combined with ICT/SMC.

Typical timeframes:5m15m1H4H
Best instruments:forexindicesfutures
Hold time: hoursOvernight: NoNews: Optional
Rules That Support This Strategy (4)
+Static drawdown

FTMO uses static drawdown -- your floor is fixed at account opening and never moves up. This gives fvg (fair value gap) traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.

+5% daily loss limit

FTMO's 5% daily loss limit is generous enough for most fvg (fair value gap) setups. At 1% risk per trade, you can absorb 5 consecutive losers before hitting the daily cap.

+No consistency rule

FTMO has no consistency rule. If your fvg (fair value gap) produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.

+Supports forex, indices

FTMO offers forex, indices markets, which align well with FVG (Fair Value Gap)'s typical instruments.

Recommended Timeframes
5m15m1H4H

These timeframes align with both FVG (Fair Value Gap)'s typical setups and FTMO's rules. Use higher timeframes for analysis and lower for entries.

Position Sizing

For fvg (fair value gap) on FTMO, risk 0.5-1% per trade. On a $50,000 account, that is $250-$500 per trade. With a 5% daily loss limit, you can take 2-4 setups per day without excessive risk.

Common Rule Violations When Trading FVG (Fair Value Gap) on FTMO
  1. Exceeding the 5% daily loss limit by revenge trading. After 2-3 losing fvg (fair value gap) trades, the emotional urge to "make it back" leads to oversized positions that breach the daily cap.
  2. Oversizing positions to hit the profit target faster. FVG (Fair Value Gap) has defined risk parameters -- increasing size beyond your plan to speed up the evaluation is the fastest path to blowing the account.
  3. Over-trading on slow market days. When fvg (fair value gap) setups are not presenting clearly, forcing trades leads to death by a thousand cuts against the daily loss limit.
FTMO Rules Quick Reference
phase 1phase 2funded
Daily Loss5%5%5%
DD TypeStaticStaticStatic
OvernightYesYesYes
Newsallowedallowedrestricted
WeekendYesYesYes
ConsistencyNoneNoneNone
FVG (Fair Value Gap) on Other Firms
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FTMO Account Rules

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