Prop Trading – Trading Strategies – 5 October 2023

https://www.mql5.com/en/market/product/74421

The most common question I get about HFT Hacker EA is can it pass a prop firm challenge. Stear clear from EA’s claiming passing in minutes or a day.  No legit firm or broker allows this. 

First the challenge, 

FTMO Swing account type

The FTMO Challenge is a two-step evaluation process that FTMO uses to assess the trading skills of potential traders. The first step is the FTMO Challenge, which is a simulated trading account that traders can use to prove their trading skills and discipline. The second step is the Verification, which is a live trading account that traders can use to earn up to 90% of their profits.

To pass the FTMO Challenge, traders must meet the following trading objectives:

• Profit target: 10% profit on the initial account balance
• Maximum drawdown: 5% of the initial account balance
• Daily loss limit: 2% of the initial account balance

Traders have an unlimited amount of time to complete the FTMO Challenge, but they must pass all of the trading objectives within 30 days of starting the challenge.

If a trader passes the FTMO Challenge, they will then be eligible to participate in the Verification. The Verification is a live trading account that is funded by FTMO. Traders must trade the Verification account for at least 30 days and meet the same trading objectives as the FTMO Challenge. If a trader passes the Verification, they will be offered a funded FTMO account.

The FTMO Challenge is a challenging evaluation process, but it is a great opportunity for traders to prove their skills and earn a living trading the markets.

Here are some tips for passing the FTMO Challenge:

• Have a trading plan. A trading plan is a set of rules that you will follow when trading. Your trading plan should include your entry and exit criteria, as well as your risk management rules.
• Be disciplined. It is important to follow your trading plan, even when it is difficult. This means not overtrading, not revenge trading, and not cutting your winners short.
• Use proper risk management. Risk management is the most important aspect of trading. You should never risk more than you can afford to lose on a single trade.
• Be patient. It takes time and practice to become a successful trader. Don’t expect to pass the FTMO Challenge on your first try.

Let’s see if HFT Hacker could pass:    https://www.mql5.com/en/signals/1974138

Over 1300 trades with various amounts of margin and multiple pairs, traded inconsistently over 18 weeks. 

HFT Hacker has a 95.27%-win rate and a profit factor of 2.95. This means that the signal is very profitable, but it is also important to note that there is still a 4.73% chance of losing a trade.

The FTMO Challenge requires traders to achieve a 10% profit target with a maximum drawdown of 5%. The signal you have provided has a 95.27% win rate and a profit factor of 2.95. This means that the signal is very profitable, but it is also important to note that there is still a 4.73% chance of losing a trade.

The signal has the potential to pass the FTMO Challenge. However, it is important to note that there are other factors that can affect the outcome of the challenge, such as the trader’s risk management skills and the market conditions.

Here are some tips for passing the FTMO Challenge with this signal:

• Use proper risk management. Never risk more than you can afford to lose on a single trade.
• Be disciplined. Follow your trading plan, even when it is difficult.
• Be patient. It takes time and practice to become a successful trader. Don’t expect to pass the FTMO Challenge on your first try.

Here is an example of how you could use proper risk management with this signal:

• Assume that you have a $10,000 account.
• You decide to risk 1% of your account balance on each trade.
• This means that you would risk $100 on each trade.
• If the signal gives you a buy signal, you would buy $100 worth of the asset.
• If the signal gives you a sell signal, you would sell $100 worth of the asset.
• You would then place a stop loss order 1% below your entry price.
• If the trade goes against you and hits your stop loss order, you would lose $100.
• If the trade goes in your favor and reaches your profit target, you would take profits.

Conclusion:

It may be possible, if you use your own optimization inputs and own knowledge of FX.  Everything is hypothetical and none of this is advice, it is just to analyze the possibilities, of using the EA to pass a prop trading challenge.   You must do your own research and due diligence.