What strategy made this FTMO Trader $30,000 in one month of trading? | FTMO
Hello traders, welcome to another trading interview. This time, with David, one of our serious FTMO Traders, from Ecucador. Welcome David, We are so happy to have you here. Hi Petr, how are you? I am grateful for the opportunity to be here sharing value to the community which you are building worldwide with all the people learning trading who are already having some results.
Thank you so much, and I feel really good today. And for those who are listening to this interview for the first time. FTMO developed a unique 2-step evaluation process for traders. This process consists of the FTMO Challenge and Verification and it is specifically tailored to search for new trading talents.
And that is why we have David here, who passed this 2-step evaluation process and now he is managing 1 FTMO Account with $200,000 with an incredible profit from the previous month of $30,000. So great result! Amazing! So, before we are going to talk about your strategy and your profits. Please, introduce yourself to us and tell us who you are and how long have you been trading? Well Petr, I have been studying trading for 3 years now.
I was introduced to trading in October 2017. A friend introduced me to trading and how it worked but I did not decide whether to study at that time. Seven months later and around July 2018 I saw this person again and at that moment I started to study trading. I would say that to the present date I have already studied for three years, the first year I do not consider it to be good, it was rather a process of learning, with many losses, but the last two years have been really incredible because I learned how to properly manage my emotions, and I found a methodology that allows me to have very small losses, with low risk, and with serenity, peace of mind, week after week. Okay, okay. You have been with us for a year or so, and now you are managing several FTMO Accounts.
Tell me. How was the experience? Well, the first reason I applied to FTMO was because it was the leading company that I found that offers account with initial balance. secondly, I noticed that there were very solid aspects in terms of customer management and support. That seemed to me extremely positive and when I applied to the FTMO Challenge the whole process was absolutely great. When I made my first profit, what surprised me the most was the Payout speed.
My Profit Split Day was on September 4th, it was a Saturday, and I received the Payout first hour on Monday, here in Ecuador it arrived almost in 24 hours. This was an excellent experience. I thought it was going to take 7 to 10 days but my experience so far with FTMO has been extremely positive. If I would rate it from 1 to 10, it will be 12 with 2 points more.
Okay. And what other trading accounts do you have? At the moment I only trade with an FTMO Account. I got another FTMO Challenge where I have already completed the 10% of a 200K FTMO Account to reach a total of 400K FTMO Account. So, for now I am only focusing on FTMO. And where did you learn to trade? Well, I first started learning trading in an academy, I began studying the basics, however, I am one of those people who like to engage with mentors, so I can accelerate my learning process.
It doesn't matter if they bill me 500 an hour, it doesn't matter if they bill me 1000 as long as that person spends an average of one hour, two hours a week while being in contact with him. I knew this would quickly boost my results because of other businesses that I also have. And nowadays my thing has been more about mentoring rather than being at an academy.
And how many mentors have you had and have now? At the moment I have three mentors. The first one who inspired me. The second one who shared with me the philosophy of trading and losing trade calmly. He teaches me to not look for trading every day, but only for scenarios that are really worthwhile.
And the third one who taught me about methodology, understanding the market, and trading by structure. Currently, these three mentors are part of my inner circle, which is what has allowed me to have quicker progress in the trading world. But for now, you have really good results. Why do you still need mentors? Well, I always need to have mentors because I realize that I grow, if they grow I grow. There is a law in leadership called the law of proximity, the closer I am to my mentors, the more influence they will have on me, so that I can continue to pursue better results.
For instance, in this case I am currently aiming to achieve 20 to 30 monthly percentage growth on my FTMO Account, without getting overleveraged, without trading every day, simply by better understanding the market structure. This allows me to be in constant growth. Okay. So, let's talk about your strategy. Do you always use the same strategy? Or do you use different trading strategies? No, I only focus on one strategy, and I apply it week by week.
I know that there are many strategies and they are good, but the methodologies that I learned, I adapted them to my personality. I know some people use methodologies like buying in a pullback, the truth is that I do not complicate myself, I simply follow the trend, if the price goes up, let's go. If the trend is bearish, I sell, it is the only one strategy I use. In fact I am not learning another one, I am simply trying to improve it for me, to better understand the scenarios, the risk management, the subject of take profit and so on. But currently only one. Alright, so, could please describe us your strategy? Well Petr, basically the methodology that I use is to take entry week by week in the forex.
Market is extremely basic. I try to only trade by structure, I understand that if the price starts to make impulses, it starts to have this type of behavior, then what I do is to identify the macro trend of the price and in these zones where the impulses are born is where I am considering go longs in case of an uptrend. So, I simply wait for the price to make its pullback. Whether it makes it on Sunday, Monday, Tuesday, when the price hits the area from which the impulse was born, this is where I evaluate whether I trade or not and here is where I allocate the 1% exposure. Then if the movement keeps going up constantly forming bullish fractals, okay, along the way I simply validate its next impulse and this is where I risk 1% of the account, or 1.5% of the account on that trading day, now I don't trade every day, I really just try to take scenarios that I really understand.
I don't trade every day. Okay, so basically here in a bearish structure I am waiting for the price within this structure to confirm a setup to sell and take profit up to this point. My methodology basically is to trade by structure, in this case bullish, if it is bearish I simply wait for the price to return to the zone where the impulses were born. For instance, in this case if I want to place a short and wait for the price to come to this zone, here I evaluate to sell. Here, right here.
I am already evaluating whether to sell or not. And in this way, my risk/benefits are already 1:3, 1:4, and in this way I am constantly trading. Whether it is buying or selling, but I am rather oriented to trade under the macro trend, so again if the price is going down weekly, the new week starts and in the micro temporality the price is making this movement, then it usually happens to be Sunday, Monday, Tuesday. Here I am waiting calmly for Wednesday or Thursday and I evaluate if I can make the sale and that's it. I am doing this every week. I do not complicate it somehow.
I am a relaxed trader, I do not look for opportunities where I shouldn't go, I simply look for extreme positions to take entry, which basically are the supply and demand areas depending on what I am looking for, if it is a long or a short. And this is a summary of my strategy, obviously, there are more aspects but that's how I look for the trading scenarios. So, you are looking only for some technical structure you do not look for some fundamentals? I do not complicate my strategy with fundamentals. For example, I always have the FTMO Calendar opened to see what news is included in the schedule I trade, I only trade during the New York session.
I don't operate London or Asia sessions because I don't think that is critical to follow, since I can only take the profits from the New York session. So, regarding the news around 9:30, and if the news is relevant, of three bulls, I just wait for the event to pass, And then for 15 to 20 minutes, I consider opening a position, but if I see the news event spoils my scenario, I don’t trade anymore. Simply I wait for the next day to evaluate if it makes sense to trade. I’m a technical trader.
So you are implementing your strategy with fundamentals. So what about some correlations? About the correlations, I’m guided by the dollar index to take entries in the forex instruments like EUR/USD or GBP/USD. I try to see what this asset's behaviour has on these instruments to evaluate if in an area that I’m looking to execute entry in GBP/USD.
Moreover, if there is any relevant news, I need to see that an entry area is respected. So, I only use the dollar index as a correlation. Nothing more. Just like that. Okay, so please continue with your strategy.
Should I continue to explain? Yes, yes, yes. Well, let's continue with my strategy. So, for example, here I am doing macro analysis. I can see that the price respects the zones of maximum and minimum, and overall, last week was bearish. So this was last week and today in London the price I respect this area, so it is most likely that if it did not break this area, it is because it will continue its bearish path, therefore at this time, I’d try during the NY session, to evaluate if the price is gonna make a pullback to any of those extreme zones, and then continues instead its bearish movement.
And that is what I do week by week every time. Here my Take Profit is a little bit broad because there are other trading concepts that I also use. I am also looking at weak and strong zones and if those zones do not generate many reactions to the structure, in other words, if those points do not send the price up, that would mean that the reaction is going to invalidate it.
Right now, I would wait because there is the possibility that it will fall. After all, it is already 8:30 in the morning, and if the price doesn't break this increasing fractal here, in this timeframe. So, if this move does not break this structure, and we are in the New York session but the London session comes to play its part now, the price is probably going down here.
Obviously, I have to wait for certain confirmations to enter, for example, here I am respecting this structure, it is setting lower highs and I would hope that here it breaks this structure and in the pullback, I would try to execute an order. But for now, the structure seems like it is gonna fall to this area. I consider this zone a weak one simply because it won’t break this fractal nor does it break the fractal here.
That is why If I would be trading now and not in this interview, I would wait to see if this area breaks this fractal and forms a new candle below this level. I’d be waiting for something like this. And in a pullback, I'd open a short position because it will probably continue its a bearish trend.
Basically, in this zone, I would try to risk only about 10pips, not more. I’m a so-called low stop-loss trader. I never trade more than 30 pips, and my RRR is roughly around 4 to 5. So, in all positions, you use only a fixed stop-loss of 10 pips? Yes, that is correct, Just 10 pips. I do not search for something more than 10 pips that is why my RRR is wide with low risks and high rewards. With this strategy, when I win, it is excellent, but my psychology and mentality are hard to sustain because waiting for 30-50 pipis affects me a lot.
On the other hand, losing only 10 pips is good for my psychology. And I have seen traders that are affected by psychology very much, because their risk is not that small as mine. So when I lose, it does not affect me much. I know that this loss is just a necessary probability that you have to get used to trading. This risk management gives me control during whole trading periods, and it keeps me optimistic to look for new opportunities other days without any complications.
Alright, I really like your aproach. And you are always calculating RRR before every trade? The truth is that I do not complicate things. I know that I can use some calculators but for me, it is just a simple approach. I choose an area that on average gives me 10 pips of stop-loss that represent 0,5% risk or 1% risk.
It depends on what the zone looks like. I simply risk 0,5% on a trade for 10 pips of stop loss. This represents about $1000 of risk to me.
It can happen that I risk 3% of the account because I can have opened 2 positions and both with 15 pips loss, which would mean that I can lose $3,000. My rules allow me to hold mostly only 2 positions, therefore in the first case, it is normal that I can lose $2000 from two positions of 10 pips loss. I can handle these two positions and sometimes it can also happen that I lose only 5 pips per position, therefore the risk with the second position will be as well 5 pips. I try to keep at the loss of 1%.
I am not going to lie, sometimes I exceed the 1% and 1,5%, but I can manage. I’m within the loss margin. Okay I understand you.
And do you specialise exclusively in forex? Yes, for me the subject of focus is important. I have only focused these three years on only three pairs, nothing more than the pound dollar, the pound yen, the euro dollar. And, that is what I have focused on those 3 markets, because the gave me the most results, and it would not be difficult for me to switch between those markets because I would have to go back to do absolutely everything I had been doing here.
For example, as a project for 2022 I have this strategy to analyze every day. I am seeing if it meets the scenarios, if it meets the risk management I use, if it is optimal for me to trade, but I don't do cash entries. I do it once but it is seldom a week.
So before getting involved in an asset I study and analyze. It is not that I become crazy and operate it, but that I have seen that it is a mistake that I made before. I limit myself to these three pairs that you see here and these ones here I have them as back up, especially NZD, when I see that the pounds have a lot of news or are in range, I try to see ok, let's see if NZD could generate some trade for me this week. I evaluate the area and try to enter. This way I focus on a single market, and I don't waste a lot of energy on other markets and that’s how I do it. And how do you use Stop-Loss? How often do you work with Break-Even? Yes, when I make an entry I simply try to trade when the price has moved an average of 25 pips.
25 pips... As an example, if I enter here, I manage my stop loss with an average of 10 pips. When the price has just crossed the 25 pips, then I enter and match the price of the stop loss to the entry price and protect the loss. To do this I simply let the price move along what I am looking for that day. I may risk 1:3, 1:4, but I am not one of those people who will close volume if I enter with a lot; it has to end up at the risk I am looking for. Now I am applying a criterion to do swing trade, every 50 pips I am going to reduce the volume of the profits that I am having.
That way, I am taking profits on the way in case I have accumulated enough or the price goes back to the entry point. So, this is my rule and I respect it. I have seen many traders that are learning; they enter and make a bid, and the price returns to the entry point and they get so frustrated.
I've already been through that. The truth is, I already have a clear understanding of risk management. It is something I cannot control, I can only control at what moment I enter, the risk management, and the stop loss. From there, if the market moves in my favor, incredible! I know that if the stop-loss triggers and I lose, there is no problem, it is part of the market it is time to go train, to go and do something else, read, learn other subjects.
I am emotionally detached. Yes, yes, I totally understand how do you protect yourself. Exactly! How do you manage FTMO Trading Objectives? Yeah, in FTMO for instance my goal is to be in the range of 20 to 30% monthly yield, so I need to always have at least around 15 to 20%. You have a goal of 20% to 30% per month? That's my goal, to get the 400k account which I'm about to achieve, but for now, with this account, my goal has always been to look for a 15 to 20% return because this is about 30K and my Profit Split would be around 21K profit.
So, what I do is I split the pie. I have seen that there are many people that try to achieve the result all at once, they want the immediate result, so if I am looking for 15% per month, I split the cake into four weeks, the month has 4 weeks, sometimes we can have 3 additional days, I just split it and go to an average of 3.5% a week. If the week is good and can give me 5% a week, perfect, but if I see that it already gave me 3.5%,
I relax and stop trading. I just relax and stop trading. I am not looking at the Trading View to trade.. sometimes there are weeks when I make a 7%, fabulous! when I am getting closer to the monthly Profit Target I am looking for, that is when I take care of the profits because it is practically a building which I am building floor by floor, and if I make the mistakes of overleveraging, trading more than I should, or if I lose I want to recover, No! I need to know, that If I am building, I can calmly get to the 1 floor again. So, for example, here my cut-off date is October 7, so this week is the one where I am more careful about trading. I try to enter areas that really indicate what I should trade.
I have seen people who are winning and in one week they destroy what they have been building for four weeks in a row. That is a matter of ambition, of not having clear goals, of not having the character to make the decision not to trade, so I focus a lot on that. It is a habit that I have developed. There is a book that I am going to recommend later, That's how I slice the cake, slicing the cake is the best.
Ok, ok. I understand. So, before we are going to talk about your results in the FTMO Client Area, I would like to say... What you are sharing with us is just a simple idea or a methodology of analysis of how you operate during trading. This can help us understand, how you are trading Is that correct? Yes, exactly. So, ok. Can we take a look at your results? Well, this is the FTMO Account where I made $30,000 of profit and I received approximately $20,000 profit, something that I am extremely grateful to FTMO because, with small accounts that I managed that was three thousand, five thousand, I was never going to achieve 20K in a month because with small accounts, it is hard to get big profits.
I knew that with FTMO if I only focused on 15 to 20% of large accounts, in this case 200K, I would always be over 10K month to month in trading. So on that side, I am very grateful to FTMO, and for example with this account, this was the development that I was having, I started balanced, then I lost something, I had here my first stop-loss, I lost 2600 which is within the range of loss and losing there I was simply evaluating the risk, the entry zones, here I was again in negative at $4,000 however it is important to maintain good risk management, enter scenarios that are worthy, study properly the traded capital, trading when you should, not every day. thats when the profits started to increase exponentially.
I can share with you what was the loss on the day that I had which was 4k because the methodology I used allows me to be within an extremely small range of loss, and as I have already developed the habit that if I lose 1-1.5% that trading day, I do not trade anymore. It is impossible for me to burn the account, it is impossible for FTMO to tell me you know what, the trading with you is over because you violated the rules. Perfect! Therefore, your own trading rules are much more strict than FTMO Trading Objectives. Right? Exactly! I am extremely strict on this matter, and it is my habit. So, for example, if I show you the table of my losses, on average it is at $637, Very small.
Yes, it is a small number. Here you can see the trading days. I started to trade on August 4th, and we can see that I lost $1600 and that was the end of this day and I waited for the next day and I did not care. because on August 5th, the next day I had a profit of about $5,000, and the day after that, I lost $1,900, and I did not trade again that day. I did not trade until August 11th, when I lost $3,300, a higher loss than just 1,5%. However, I did not trade again until the next day.
As you can see, risk management is highly respected. On August 13th, I had a profit of $7500 with a risk of 1,4%; on August 17th, I had a profit of $4,000. On August 18th, $7,000; on August 19th, $570. And the next day had a loss of $3,500, but that is not a problem because we can lose, losing is not a problem at all. You can also see that the management of some trades is around three trades per day, which can be seen as not much, but there are times when I open more positions.
Sometimes the market presents wide ranges, and we have no idea when it will break; it is better to close the position if it is not fulfilling my confirmations and wait for a new trade for the next day. I am aware that when the market is in the potential zone, the price loves to accumulate itself. For example, if I had entered here, I would not have a range for trading and that is why I would not be trading. I am very consistent in this.
If I will not be consistent in trying to enter when it will be ranging, I would be just opening more positions, that would not be a good approach because it will result in many losses for the whole week. And how often do use Client Area for this trading overview? I am using this every day and the economic calendar as well. I am always aware of the following news events that I consider relevant to me. Since I am more of a technical trader, once the fundamentals are released and the market moves with 100-300 pips, it is irrelevant to trade around them. So, if I notice that the FTMO restricts some news that has some impact on my instruments, I will see that if it is possible to impact my instrument, I do not trade around news events, and I wait for the news to pass.
I do not want to see some trading complications; therefore, I am constantly evaluating what is happening. I am aware of all restricted news events from the FTMO. If FTMO does not allow us to trade around them, I will not be doing it. I also have one FTMO Account Swing, and I can trade during restricted new events, but that is not what I want to do. I am waiting for what is going to happen, and then I will enter. For example, how do I handle the initial balance, if I want to open a position with a risk of 10 pips or 1% risk of my account at 7:10 in the morning and news event is going to be released at 7:30? I will simply wait until this time of the news release.
I also prefer to wait another 15 minutes and then open a position. This is how I handle the restricted news event in my trading. And what can you show us in your symbol analysis? What did you say please? Can you show us your symbol analysis? You mean this? Yes, please, just a little bit lower. Yes, here, of course.
Well, in this case, I only trade my favourite pairs, I stick with GBPUSD, GBPJPY, NZDUSD, EURUSD, I took only one entry for EURUSD, but my favourite pairs are GBPUSD. In that trade, I use it as a backup, as an ok... if pounds are accumulating, and they are in range, there is a lot of news, then I switch to NZDUSD to back up my investment. However, I focus more on GBPUSD and GBPJPY because one trade gives me risk 1:4 - 1:5, and then why continue on the chart? Since I split the cake for the month, if I already made 7k, I only need another trade of about 4k, 5k and I've done my week, and from there until the next week we will wait. I do the same until the next week, so basically I generate the issue of profits week to week, I plan my week for trading from Sundays-- I know what percentage I should lose in a trade, I know what profit I should take because many times you enter the market and take very good profits but you don't get out. You don't close the trade and get carried away by greed and then the price falls, returns and takes you out.
I have a clear trading system, I know what day I should trade, and at what time, to do a good risk management. I also have a habit that even If I lose or win, at 10:15 I have to be with a trainer. I train jiu jitsu, so I have a habit that helps to take care of the emotional issue when I lose so when I lose, I just go to my training and I detach myself from the loss. I just forget about trading and I focus the rest of the day on the things I have to do.
It is a habit that I adopt, it is a habit to avoid being on the chart if you lose, and many times when you win, you want to continue trading because you feel powerful, and you believe that the market will always favor you. So, whether I win or lose, 10:15 I am already training, and I forget about trading. In fact, this habit has helped me a lot because when I enter, there are times when the price accumulates, is at risk 1:3 and as I look from 1:4, 1:5 as I'm already going to train and as I'm driving I do not notice the cell phone and bam!-- I am already in the zone where I should be.
And that is because of being aware that it is going down, I am about to close, it is coming back, and I get out of the trade. That has happened to me before, and I cannot take the profits that I was really looking for, that is what usually happens, so I have developed this habit. Alright, I am now aware of how your strategy works and I understand why you are such a good trader.
Because when you are trading, you now what you are doing. Therefore, thank you so much for this and let's go to the last part of our Interview. David, please, tell me, do you have a trading plan? If so, how complex it is? Yes, my trading plan is pretty simple. My plan is to have 15 to 20% of profit each month. I start trading on Tuesday to Friday, and I am constantly evaluating if it is good to trade on Tuesday or wait until Wednesday. If on Wednesday there is nothing interesting, I look forward to the next day, to Thursday.
If I see that there will be a lot of news on Friday, I will not trade on Friday. So in my trading plan, I have pretty strict rules. Risk management is always 1% to 1,5% of the risk and takes profit is 3, 4 of 5 of RRR. Recently I have been trying to search for opportunities with possible RRR 6 or 8.
After this single result, I swear, I can rest for the whole week, and I do not have to trade. I do not trade fundamentals, and I only trade during the New York session. So, my trading plan is pretty basic and minimalistic.
I have seen many people who use very complex trading plans with excel sheets, but for me, I only have the five rules that I mentioned. You certainly have a very simple trading plan. Yes, the simpler, the better. Do you have someone to inspire in the trading community? Yes, I am very inspired by Michael. When I met him, he was a person who was earning about 5K, 10K in USD in trading, and at that time for me, those earnings were amazing because I was earning just 2K-3K in USD, and I saw that he was making that money in hours, but I was making that amount in months.
That is why he is my mentor-- he is living proof for me that someone in trading can earn over 5 to 10 thousand dollars. And now he earns much more. I understood that larger accounts matter a lot, so I want to have a career with FTMO to end up with a million-dollar account in the next two years. Imagine if I could make 15% on this one million dollar account! I can make more than $100,000 profit trading calm and relaxed. I am not interested in making 100K USD now, because I would violate all my trading rules to do so.
But, in the long term view, I believe I can do it. I also have constant conversations with my mentor Michael with whom I share my results and progress, and we talk about his progress and his results as well. This helps me a lot. Ok. Thank you so much. And my last question is: Do you have a secret recipe that could help other traders to pass the FTMO Challenge? Well, I would say that most traders focus on studying trading, but they forget that for any business, you need to have the right setup of your mindset for it; you need to have personal growth.
So If you are going to apply for FTMO Challenge because you are watching this video, I would recommend reading five books about trading psychology. The Secrets of the Millionaire Mind, the Power of Your Subconscious Mind and another psychology book called Trading Psychology by Brett N. SteenBarger. And then I would recommend reading about three books about investments, for example, by Anthony Robbins. And while reading, try to practice on a demo account as much as possible, on 100K FTMO Challenge or 200K FTMO Challenge. Try to live with the process. Try to experience the trading process with peace of mind.
Do not force yourself to trade to pass the FTMO Challenge. If you manage to operate week after week without feeling that anxiety. That's when you go to the FTMO Challenge and it gets really easy. because you already have the mindset, you have the healthy habits to operate, and the chances of losing the Challenge are greatly reduced. That way, it will become easier to pass it if you trade precisely with the same style. Because if you pass the Free Trial, you already have the skills to pass it. I met some people who paid for the FTMO Challenge, and I asked them how many psychology books they read.
Not a single one of them answered me because they are not focused on growth. So what I would like to say is that my success in the trading business is because I read books and I am interested in personal growth and psychology. After all, I want to grow.
Some days I read some chapters, listen to a podcast or listen to some audiobooks, other days, I learn from new trading courses so that my mind can always grow and expand as much as possible. When I see the chart, I can only see an investment opportunity where I have risk, and If I lose, there is no problem because I will trade the next day again. So my success in trading is because I am creating a robust strategy of personal growth. This advice applies to any other business. This is working for me, my family, and my kids as well. And trading business generates profit for me right now.
So, simply focus on developing the strategy for your personal growth. Really an amazing secret recipe and thank you for it. And thank you again so much for this interview. I believe, that now we have a clear view of what you are doing while you are trading, and how did you get to the top with this amazing profit. I am so happy to see a trader who is constantly profitable and I believe you will prosper much more in the future.
I have one special advice for you: Remember, if you lose all your chips, you no longer can play. Do you have any last words? Well Petr, thank you so much for your time and thank you so much for the opportunity to speak Spanish because I know that during the Interview, you guys speak only English, so this says a lot about how much you care about the quality of the customer service you provide. I want to say that if you are evaluating and searching for some prop trading firm, choose FTMO 100%. Consult the rules with them, consult all restrictions with them so that you can pass the FTMO Challenge, and start to learn to live with the evaluation process. Do not despair if you fail. FTMO will be here for you when you are ready and will work with you.
So, go through the process step by step, week by week, and do not become anxious. I am so grateful to you, Petr, and the entire FTMO community. And that's FTMO!