My Forex Funds Evaluation: How to Pass Phase 1 in two trades

The My Forex Funds Evaluation is arguably one of the most competitive prop firm challenges available on the market today. Unlike many prop firm evaluations which expect you to make a 10% profit in the first period (such as the FTMO Challenge), the MFF Evaluation first phase needs just 8%. Plus, there’s also the possibility of an extension or a free retake if you don’t quite make it the first time. However, none of these facts mean that the evaluation is easy. In this article, we’ll give you some ideas which you may be able to incorporate into your own strategy – and hopefully succeed.

Passing a My Forex Funds Evaluation

Before we look at the strategy, it’s worth taking a quick reminder of the other rules for the evaluation:

  • During Phase 1, you have 30 calendar days to increase the starting account balance by 8%.
  • During Phase 2, you have 60 calendar days to increase the starting account balance by 5%.
  • You may not lose 5% or more of the account balance in a single day.
  • You may not lose more than 12% of the starting account balance overall.
  • You must trade for 5 days or more. This means you simply need to open one trade, per day, five times. Closing a trade does not count towards this target.

Let’s consider some of the key trading principles behind these rules. Not only are they designed to test that you’re profitable, but they’re also designed to make sure you that are patient, disciplined, and consistent. Of course, the main purpose of a two-phase evaluation is to make sure that passing the first phase wasn’t simply just a case of dumb luck.

My Forex Funds Strategy

Here’s a really powerful idea that can pass the first phase in as few as two trades. The main ingredient is a 1:2.5 risk-to-reward ratio so that for every dollar you risk on a trade, you stand to gain $2.5.

It’s really simple:

  • The first trade risks 1% of the original account balance with a 1:2.5 risk-to-reward ratio
  • The second trade risks 1% of the original account balance, plus the profits from the previous trade, using the same 1:2.5 RR.
  • If this second trade is successful, these two trades back to back will deliver a profit of 8.75% of the original account balance.

Here’s an example with a $100,000 account:

  • The first trade risks $1,000 and is successful, delivering a profit of $2,500. The account stands at $102,500.
  • The second trade risks $3,500, which consists of 1% of the starting account balance, and the $2,500 profit from the previous trade.
  • If this second trade is successful, 2.5 x $3,500 is $8,750.

This type of strategy is known as asymmetric compounding, whereby some or all of the profits from the previous winning trade are risked along with a percentage of the previous account equity before the win.

FTMO Asymmetric Compounding

A similar strategy also exists for the FTMO Challenge. However, because the profit target of the FTMO Challenge is 10%, passing it in two successive trades requires a risk-to-reward ratio of 1:3. Check out this FTMO strategy here.