By Andrew Lockwood, Head of Education at Funded Trading Plus
With insights from Simon Massey, CEO of Funded Trading Plus
In funded prop trading, risk management isn’t just a technical requirement—it’s your survival mechanism. And at Funded Trading Plus (FT+), it’s the key to unlocking real financial rewards from simulated capital.
Let’s start with the most important distinction:
All FT+ funded prop trading programs use simulated capital—but your payouts are 100% real.
You’re trading in a controlled environment designed to mirror live conditions, but your performance can lead to real cash payouts. That means managing risk is not just smart—it’s essential.
Why Risk Management Is Essential in Funded Prop Trading Programs
Every FT+ account—whether evaluation or funded—comes with clearly defined rules:
- A maximum simulated loss limit
- A simulated profit target
- And, in some cases, a daily simulated loss cap
Breach these limits and your account ends, regardless of how well you were doing. That’s why mastering risk is the most consistent trait of successful FT+ traders.
1. Use a Maximum 1% Risk Per Trade
Our successful traders risk no more than 1% of your account size per trade. And many of them risk much less.
Example:
With a $50,000 funded account, the maximum risk per trade is $500.
Before placing a trade:
- Set your stop loss first
- Use a position size calculator to ensure your lot size keeps your loss under $500
- Stick to this rule without exception
This approach gives you staying power. Even after a losing streak, your capital and opportunity remain intact.
2. Always Trade with a Stop Loss
At Funded Trading Plus we don’t mandate that you use a Stop Loss. But you should not consider using a stop loss as an option in funded trading. It’s your guardrail against emotional decisions and catastrophic mistakes.
Always:
- Place a stop based on your strategy—not gut feeling
- Avoid moving it once the trade is live
- Let small losses happen so you can prevent big ones
At FT+, very few funded traders succeed without mastering this habit.
3. Limit the Number of Trades
More trades don’t equal more profit. Overtrading usually leads to:
- Lower win rates
- Higher emotional fatigue
- Increased risk of rule violations
Stick to:
- 1–3 well-researched trades per day
- A clear pre-trade checklist
- A plan for when not to trade
4. Know Your Risk-to-Reward Ratio
You don’t need to win every trade—you just need your winners to outweigh your losers.
If you risk $500, aim for at least $750–$1,000 in return. A solid 2:1 risk-to-reward ratio means you can stay profitable even with a 50% win rate.
5. Track Everything and Adjust
Smart traders don’t just trade—they measure and refine.
Keep a log of:
- Entry/exit points
- Risk taken
- Strategy used
- Emotional state
- Rule adherence
This data becomes your roadmap for improvement—and your proof of consistency.
Trading Psychology: Insights from Simon Massey, CEO of FT+
“The best traders don’t just manage risk—they manage themselves. It’s the mental game that separates the consistent professionals from the hopeful amateurs.”
— Simon Massey, CEO of Funded Trading Plus
Simon shares three critical mindset tips:
✅ Accept Losses Before You Trade
If a $500 loss causes anxiety, the position is too large. Emotion-free trading starts with realistic risk.
✅ Trade the Process, Not the Outcome
Winning a trade doesn’t mean you did the right thing. Losing a trade doesn’t mean you did the wrong thing. The process is what matters.
✅ Stay Bored, Not Busy
Boredom in trading means discipline. If you feel over-stimulated, you’re probably overtrading or overleveraging.
Final Thoughts: Risk Management Is the Real Skill
At FT+, we reward the traders who can stay composed under pressure, follow a plan, and manage risk with precision.
With simulated capital and real payouts, your funded prop trading career starts with one question:
Can you protect opportunity better than you chase profits?