FTMO Rules in Detail
Knowing the FTMO rules in depth is step zero before any trader starts the challenge. Many traders fail not due to a lack of strategy, but because they are unaware of a specific rule. Here is a clear and complete guide.
Drawdown Limits
- Maximum daily loss: 5% of the day's highest equity (relative to the daily peak)
- Maximum total loss: 10% of the highest equity reached since the start
Drawdown is calculated on equity — including open positions. If you have a position in the red, it already counts toward your drawdown. Do not wait until you close the trade to calculate.
Profit Targets
- Phase 1 (Challenge): +10% profit
- Phase 2 (Verification): +5% profit
- FTMO Account: no mandatory target — focus on consistency
Minimum Trading Days
You need at least 4 trading days per phase (both Challenge and Verification). A trading day counts when you have at least 1 trade opened or closed on that day.
Deadlines
- Phase 1: 30 calendar days
- Phase 2: 60 calendar days
If you do not hit the target within the deadline, the challenge expires. You can buy a discounted retry or start over.
Allowed Instruments and Strategies
FTMO allows trading forex, indices, commodities, metals, and cryptocurrencies during normal market hours. Prohibited:
- Latency or feed arbitrage
- HFT (High-Frequency Trading)
- Copying signals from another FTMO trader
- Holding positions open over the weekend (on some plans)
- Trading high-impact news with stops deliberately beyond spread (reviewed case by case)
Consistency Rule
FTMO does not enforce a formal consistency rule (like some firms that cap the largest profit day at X% of total), but manually reviews unusual patterns. Avoid concentrating 80% of your profit in a single day.
Monitor Your Metrics to Avoid Surprises
The best way to ensure you are within all the rules is to log every trade in ForexTracker. The app automatically calculates your relative drawdown, trading days logged, and profit progress — exactly the numbers FTMO evaluates.
Stay within FTMO rules at all times. Use ForexTracker at app.forextracker.com.br.
