How to Pass True Forex Funds Challenge (2026 Guide)

True Forex Funds (TFF) has gained traction as a news-trading-friendly prop firm — one of the few firms that allows entries during red-folder economic events. For discretionary traders whose edge comes from NFP, CPI, or FOMC reactions, this alone makes TFF worth considering over FTMO or Apex.

This guide covers the full ruleset, news-trading considerations, and a two-phase playbook to pass.

True Forex Funds Rules

• Account sizes: $10K, $25K, $50K, $100K, $200K
• Phase 1 target: 10%
• Phase 2 target: 5%
• Daily drawdown: 5%
• Max drawdown: 10%
• Min trading days: 5 per phase
• News trading: Allowed (rare among major firms)
• Profit split: 80%

The ruleset is comparable to FTMO's Challenge/Verification structure, but news trading permission is the key differentiator.

News Trading on TFF — The Edge

Most prop firms prohibit entries within 2 minutes of high-impact news. TFF allows them. This matters because:

• Volatility edges: Many forex strategies exploit predictable post-news momentum (e.g., NFP reaction patterns). These are blocked on FTMO.
• Spread widening: News periods have wider spreads, which increases risk. TFF allows you to trade them but punishes bad execution with 5% daily DD.
• Breakout strategies: Strategies that capture range expansion post-news work best here.

The trade-off: news periods are volatile. A wide-stop strategy that works in calm markets may get stopped 2× expected distance during news.

Position Sizing for TFF

With 5% daily DD and 10% max DD on $100K:

• Conservative: 0.5% risk per trade (10 stops to breach daily, 20 to breach max)
• Standard: 1% risk per trade (5 stops to daily, 10 to max)
• News-aggressive: 0.75% risk per trade with widened stops during news events

The 5 Rules That Catch TFF Traders

1. 5-Day Minimum Per Phase

Most traders attempt to rush Phase 1 in 3–4 days. TFF auto-extends. Plan for at least 5 distinct trading days.

2. Consistency — Informal Review

No hard 50% rule, but reviewers flag profiles where one day dominates. Spread profit across 3+ days.

3. Weekend Holding Prohibited

All positions flat before Friday close (20:00 UTC).

4. Overnight Holding Allowed

Unlike Topstep, TFF allows overnight holding on most products. This changes strategy — swing approaches work here.

5. EA and HFT Restrictions

EAs allowed. HFT, latency exploits, and tick scalping prohibited.

The Two-Phase Playbook ($100K)

Phase 1 — Target 10%

Days 1–5: 0.5% risk per trade, 2–3 trades per day, target 3% profit. Avoid news events in week 1 while building comfort with platform.

Days 6–12: Increase to 0.75% risk. Target 6–7% profit. Begin taking post-news momentum trades on familiar setups.

Days 13–18: Close out phase 1 at 10%. Reduce size in final 2% to avoid late-phase breaches.

Phase 2 — Target 5%

Lower target but same daily DD. Most Phase 2 failures come from oversizing "because 5% is easy." Keep sizing at 0.5–0.75% and pass in 2–3 weeks.

When TFF Is the Right Choice

Choose TFF over FTMO/MFFX if:

• Your strategy depends on news-event volatility (breakout, momentum, mean-reversion)
• You trade swing positions that require overnight holding
• You prefer 5-day minimum over FTMO's 4-day (forces patience)

Choose FTMO/FTP instead if:

• You avoid news anyway — the permission doesn't benefit you
• You need a more established firm track record (TFF is newer)

Frequently Asked Questions

Is news trading really a competitive edge?

Yes — but only if you have a specific news-based strategy. Casually trading news without a defined edge is a fast way to breach daily DD.

How long does Phase 1 typically take?

Average successful Phase 1 takes 12–18 trading days at conservative sizing. The 5-day minimum is met easily; the 10% target is the real constraint.

What platforms does TFF support?

MT4, MT5, and MatchTrader. Choose based on your strategy — MT5 for indices/futures, MT4 for classic forex. Check TFF rules for supported symbols.

Can I scalp on TFF?

Scalping allowed if holding time exceeds 30 seconds. HFT prohibited.

Is True Forex Funds legit?

TFF has been operating since 2021 with documented payout history. Do independent research on current payout proofs before committing.

Before you start: Get your free Discipline Score — if your Rule Adherence axis is below 75, the news-trading permission becomes a liability rather than an edge.