What happens if I fail the FTMO challenge?

If you don't fail the drawdown limits (5% daily, 10% total), but have a positive balance under the 10% profit target, you can try again for free. If you fail the drawdown limits, then the challenge is forfeited. It's best practice to test your strategy on a demo account before proceeding to the challenge to ensure your settings are correct etc. FTMO is actually trading on demo accounts, then they copy trade from that. So demo trading is perfect simulation of the FTMO challenge. All our strategies have been run multiple times on demo accounts, and on real FTMO challenges to hit the profit targets.