Most FTMO traders know they should keep a trading journal. Few actually know what to put in it, how to review it, or how to use it to improve their challenge performance. This guide covers everything - from setting up your journal before Phase 1 to using your data to stay funded long-term.
Before You Start: Set Up Your Rules
The most important thing you can do before starting your FTMO challenge is document your trading rules. Not after you pass. Before you start.
Your core rules should cover:
1. Daily loss limit rule - FTMO's daily loss limit is 5% of your account balance. Set a personal limit at 3-4% to give yourself a buffer. Rule: "Stop trading for the day if daily P&L reaches -3.5%."
2. Maximum drawdown rule - FTMO's maximum drawdown is 10%. Set your personal limit at 7-8%. Rule: "Alert review if total drawdown exceeds 6%."
3. Revenge trading rule - Rule: "No new trades within 15 minutes of a losing trade." For the full system, read How to Stop Revenge Trading.
4. Overtrading rule - Rule: "Maximum 5 trades per day."
5. Setup rule - Rule: "Only enter trades that meet all 5 criteria of my checklist."
Step 1: Connect Your MT4/MT5 Account
Import your complete trade history automatically. In TMI:
1. Go to Connections
2. Select your broker (FTMO uses their own MetaTrader environment)
3. Enter your account credentials
4. Your full trade history syncs instantly
Every trade - entry price, exit price, duration, profit/loss - is logged without manual entry.
Step 2: Set Your FTMO Rules in the Rule Tracker
In TMI's Rule Tracker:
1. Add each of your trading rules
2. Set violation conditions (e.g., "flag if time between trades < 15 min after a loss")
3. The AI monitors every trade and flags violations automatically
At the end of each week, you see exactly how many rules you broke and what it cost you.
Step 3: Daily Journaling Routine
Before trading (5 minutes):
- Complete the morning checklist in TMI
- Note your bias for the day (bullish/bearish/neutral)
- Set your intended max daily loss and target
After each trade (2 minutes):
- Tag the setup (e.g., "breakout", "ICT OTE", "SMC FVG")
- Rate your execution (1-5)
- Note anything unusual about the trade
End of day (5 minutes):
- Review daily P&L vs daily target
- Flag any rule violations
- Write 3 sentences: what went well, what went wrong, what you'll do differently
Step 4: Weekly Review
Every Sunday, do a 30-minute review using TMI's weekly debrief:
Questions to answer:
- Which setups had the highest R:R this week?
- Which session was most profitable (London, NY, Asian)?
- Did I trade my rules? How many violations?
- What is my emotional pattern - do I perform better on Monday or Friday?
TMI generates most of this automatically. Your job is to read it, internalize it, and adjust.
Phase 2 Adjustment
Once you pass Phase 1, your Phase 2 target is 5% (half of Phase 1). The risk here is complacency. You've passed once - you might loosen your rules.
Don't. Journal Phase 2 with the same discipline as Phase 1. Your journal data from Phase 1 is your most valuable asset going into Phase 2.
The Funded Account: Keeping Your Account Long-Term
Passing is one thing. Staying funded is another. Traders who keep their funded accounts long-term share one trait: they never stop journaling.
Use your TMI data to identify your most consistent setups, your best sessions, and your worst behavioral patterns. The journal that helped you pass is the same journal that keeps you funded.
For the concrete tactics that lift pass rates, read FTMO Challenge Tips 2026. For the mistakes to pre-empt after you pass, read Funded Trader Mistakes to Avoid.