The distribution that makes prop firm challenges exploitable.
100k FTMO challenge costs $620.
Buy 6 accounts
Total cost $3,720
Phase 1
10% profit target
10% max loss
3 / 6 reach phase 2
Phase 2
5% profit target
10% max loss
2 / 6 pass
Funded stage
1 account hits 10% drawdown
1 account hits 10% profit
Profit on $100,000 at 10% = $10,000
80% split β $8,000 payout
$620 challenge fee refund
Total received $8,620
Net after $3,720 cost β $4,900
Obviously there are spreads, time limits and rule constraints, but the distribution still leaves the odds favourable if you treat the challenge as a probability problem rather than a trading one.
Made over Β£200,000 from this before turning 18. The method continued to work largely because most traders do not manage risk and rarely think in expected value.