The expert advisors or bots that you develop with the help of XauBot can be used in prop challenges. XauBot EAs can be built such that they are especially ready and equipped to pass the challenges put forth by prop firms. In this article, we are going to take a special look at how XauBot can be used to generate bots to tackle the challenges of FTMO, one of the most well-known prop firms.
As we just mention, FTMO is a leading and top prop firm. For this reason, countless traders try to become a prop traders on this firm. In order to become a prop trader, you need to go through the testing process or challenges that FTMO has put in place in order to find reliable traders. You can do something smart and use an even smarter trading bot for such challenges. Let’s see how XauBot can help you with that.
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What Is Prop Trading or FTMO?
To find out how XauBot helps you beat the FTMO challenge, which is a prop trading challenge, we must first understand what prop trading is.
Trading requires capital, which is sometimes referred to as trading capital or trading equity. Naturally, the more money or capital that you have the higher your chances of obtaining profits and also the higher the chances that the profits you obtain are considerable and significant.
But the reality of the matter is that your capital is not unlimited and as a trader you are bound to the amount of money that you have at your disposal for trading. There are different ways with the help of which you can increase your trading capital, such as using leverage which is really high risk. But then there is another way that is less risky and all the same gives you the chance to trade with a substantial amount of capital – yes we are talking about prop trading.
Prop trading is a method of trading in financial markets, such as the forex market, that allows you to trade with a much higher capital than you have. In fact, you do not need to have much or even at all in order to begin trading with this method.
But where does the money come from? In this method, a platform or a prop firm will provide you with the capital to trade. This way, you bring in the skill and talents that are associated with trading and the firm will only provide the capital. It’s like a win-win scenario where both parties benefit.
So, when you trade with their capital you get to keep some of the profits and the firm will in turn also receive some of the profits. And the capital that they provide for you will remain in circulation for trading.
But prop firms and platforms are not just giving out money to every trader that comes around. There is actually a series of tests that you have to pass first in order to obtain the trust of the prop firm that you are indeed a good trader and that you will not gamble away their money!
This is what we call a prop test or a prop challenge. But beating such challenges can be a difficult feat for most traders. And there is a reason for that. They make such challenges difficult enough to sift through the worthy traders who can trade efficiently and bring benefits to the prop firm as well.
Now, let’s take a look at one of the most well-known challenges in the world of prop trading and also how you can successfully pass it with the help of XauBot.
What Is the FTMO Challenge?
One of the most well-known prop trading firms is known as FTMO and it has a prop trading challenge for traders that is divided into 3 steps as follows:
- The first step is to register for the prop challenge and pay an entry fee of 155 Euros. And then the first step is to hit a profit target of $1000 in more than 4 days with a maximum loss of $1000 as the loss threshold.
- If you successfully pass the first step, then it is time for the second step. In the second step of the challenge, you must hit a profit target of $500 with the exact same conditions for trading.
- And if you are also successful in passing the second step, then you can get to the last step, the third step. The last step is when you actually become a prop trader with FTMO and you will also be refunded the entry fee that you had paid in the first step.
It sounds simple enough on paper, but beating this challenge can be quite, well, challenging!
But not to worry. XauBot will help you pass this challenge. Let’s see how.
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How to Successfully Pass the FTMO Challenge with XauBot?
XauBot is fully compatible for passing prop trading challenges. Passing the FTMO challenge requires building an Expert Advisor (EA) that achieves consistent profits while adhering to strict risk parameters, such as a 10% profit target in Phase 1 with no more than 5% daily drawdown or 10% overall loss.
XauBot, our intuitive bot generator, empowers users to create custom EAs tailored for this purpose without needing advanced coding skills.
Start by selecting Forex or Metals as your market, as these offer stable volatility ideal for FTMO’s demo environment. Then, choose the Multi-Level Strategy for its ability to manage drawdowns through averaged entries, or the Scalp Strategy for quick, high-frequency trades that can accumulate profits efficiently within the challenge’s minimum trading days. Pair this with proven entry logics like XAUBOT (combining RSI, Bollinger Bands, and Stochastic for reversals) or MACD + EMA Trend for trend-aligned setups, ensuring your EA focuses on high probability signals to meet profit goals without excessive risk.
In the configuration step, optimize for FTMO’s rules by setting conservative parameters. This means you need to allocate capital based on your planned account size (for example $1,000–$10,000 for balanced testing), cap drawdown at 5-10% to align with max loss limits, and select low to medium risk levels for smaller lot sizes that prevent rapid equity drops. For Multi-Level, adjust distances to 20-30 pips and multipliers conservatively (such as 1.5-2) to build positions gradually.
For Scalp, set tight take profits (10-15 pips) and stop losses (5-10 pips) with trading hours limited to low volatility sessions like Asian markets.
Enable the news filter to avoid high impact events that could trigger drawdowns, and for premium users, activate AI decision feature to filter trades based on real-time sentiment from sources like Twitter and Reddit, enhancing alignment with market direction and reducing false entries.
Users who develop EAs with XauBot often pass FTMO by backtesting on demo accounts first and optimizing parameters like timeframes (M15 for Multi-Level, M5 for Scalp) to ensure consistency across 4-10 active days. Many succeed by emphasizing risk management over aggressive profits, resulting in scalable bots that not only clear the challenge but also thrive in funded accounts with 80-90% profit splits.
With XauBot, becoming a prop trader at FTMO can turn into reality.
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Conclusion
Prop trading is a method with the help of which a forex trader can have access to substantial amounts of trading capital. This is when a firm, called a prop firm, will provide you with the capital to trade if you have the skill and competency for trading. We showed you in this article how you can use XauBot to pass the prop trading challenge of the prop firm FTMO.