Scalping on FTMO is rated excellent fit. There are no major rule conflicts. FTMO offers 5 rules that actively support this strategy. Recommended timeframes: 1m, 5m.
Ultra-short-term trading targeting small price movements (a few ticks to a few points). High frequency, small targets, tight stops. Requires fast execution and low spreads. Positions held for seconds to minutes.
FTMO uses static drawdown -- your floor is fixed at account opening and never moves up. This gives scalping 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 scalping setups. At 1% risk per trade, you can absorb 5 consecutive losers before hitting the daily cap.
FTMO has no consistency rule. If your scalping produces one large winning trade, you keep the full benefit without worrying about single-day profit caps.
FTMO allows EAs and automated trading. Scalping can benefit from automation for execution speed and consistency.
FTMO offers forex, indices markets, which align well with Scalping's typical instruments.
These timeframes align with both Scalping's typical setups and FTMO's rules. Use higher timeframes for analysis and lower for entries.
With FTMO's 5% daily loss limit, scalpers should risk 0.25-0.5% of account per trade. On a $50,000 account, that is $125-$250 per trade. This allows 4-10+ trades before approaching the daily limit.
- Exceeding the 5% daily loss limit by revenge trading. After 2-3 losing scalping 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. Scalping 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 scalping 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 |