Price Action on FTMO is rated excellent fit. There are no major rule conflicts. FTMO offers 4 rules that actively support this strategy. Recommended timeframes: 15m, 1H, 4H, Daily.
Trading based purely on candlestick patterns, support/resistance, and chart structure without indicators. Includes pin bars, engulfing candles, inside bars, and key level reactions. Versatile across all markets and timeframes.
FTMO uses static drawdown -- your floor is fixed at account opening and never moves up. This gives price action traders maximum room to absorb normal strategy drawdowns without the floor chasing your profits.
FTMO's 5% daily loss limit is generous enough for most price action setups. At 1% risk per trade, you can absorb 5 consecutive losers before hitting the daily cap.
FTMO has no consistency rule. If your price action produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
FTMO offers forex, indices, commodities, crypto markets, which align well with Price Action's typical instruments.
These timeframes align with both Price Action's typical setups and FTMO's rules. Use higher timeframes for analysis and lower for entries.
For price action 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.
- Exceeding the 5% daily loss limit by revenge trading. After 2-3 losing price action trades, the emotional urge to "make it back" leads to oversized positions that breach the daily cap.
- Oversizing positions to hit the profit target faster. Price Action has defined risk parameters -- increasing size beyond your plan to speed up the evaluation is the fastest path to blowing the account.
- Over-trading on slow market days. When price action setups are not presenting clearly, forcing trades leads to death by a thousand cuts against the daily loss limit.
| phase 1 | phase 2 | funded | |
|---|---|---|---|
| Daily Loss | 5% | 5% | 5% |
| DD Type | Static | Static | Static |
| Overnight | Yes | Yes | Yes |
| News | allowed | allowed | restricted |
| Weekend | Yes | Yes | Yes |
| Consistency | None | None | None |