FTMO Challenge Rules: What Traders Must Track

FTMO Challenge rules differ between the current 1-Step and 2-Step products. A trader or EA must follow the objectives for the product actually ordered, including the equity-based loss limits and their reset mechanics.

This guide was checked against FTMO's official Trading Objectives and forbidden-practice pages. Confirm the current rules again before ordering because products and conditions can change.

What are the current FTMO Challenge rules?

The current FTMO rules cover a profit target, maximum daily loss, maximum loss, and product-specific objectives. The exact calculation differs between the 1-Step and 2-Step Challenges.

FTMO states that equity includes the account balance, open position profit or loss, swaps, and commissions. A position does not need to be closed for an equity-based breach to occur.

• 1-Step: FTMO currently lists a profit target, a 3% Maximum Daily Loss, a 10% end-of-day trailing Maximum Loss, and a Best Day Rule.
• 2-Step Challenge: FTMO currently lists a 10% profit target, 5% Maximum Daily Loss, 10% static Maximum Loss, and at least four Trading Days.
• 2-Step Verification: FTMO currently lists a 5% profit target with the same daily and overall loss limits and minimum Trading Days.

Read the current FTMO Trading Objectives alongside the checkout configuration. Do not transfer limits from one product to another.

How does FTMO calculate Maximum Daily Loss?

FTMO calculates Maximum Daily Loss from account equity, not closed balance alone. The calculation includes open positions, swaps, and commissions and is recalculated at 00:00 CE(S)T.

For the current 1-Step product, FTMO states a Maximum Daily Loss Amount of 3% of Initial Simulated Capital. For the current 2-Step product, it states 5%.

The reset time is operationally important. A profitable day can raise the balance used for the next calculation, while open positions held across the reset can change the available room in ways that a simple daily profit figure does not show.

An EA should therefore read account equity and the relevant server time. A local clock, closed-trade counter, or balance-only check is not sufficient.

Is FTMO Maximum Loss static or trailing?

It depends on the product. FTMO describes the 2-Step Maximum Loss as static and the 1-Step Maximum Loss as an end-of-day trailing limit.

For 2-Step, the current Maximum Loss Amount is 10% of Initial Simulated Capital. For 1-Step, the current 10% limit is recalculated from the highest balance recorded at the daily reference point, or the Initial Simulated Capital if higher, and can move upward but not downward.

This difference changes how an EA should protect open profit. A strategy that treats both products as having the same fixed floor can calculate the remaining room incorrectly.

What is the FTMO Best Day Rule?

The Best Day Rule applies to the current 1-Step Challenge and subsequent 1-Step FTMO Account. FTMO says the best day must not represent more than 50% of the profit from positive trading days.

This is a consistency measure, not a daily profit cap. If one day contributes too much of the positive-day total, additional qualifying activity may be needed before the objective is satisfied.

Automation should track this rule separately from drawdown. A daily loss guard does not calculate concentration of positive results, and a profit lock does not establish whether the Best Day condition is met.

How many trading days does FTMO require?

The current 2-Step Challenge and Verification require at least four Trading Days. FTMO defines a Trading Day as a CE(S)T calendar day on which at least one position is opened.

Holding one position across several dates does not automatically create several Trading Days. The opening timestamp is what matters for this objective.

FTMO's current 1-Step Trading Objectives page does not list the same four-day objective. Always check the product selected at checkout rather than applying 2-Step assumptions to 1-Step.

Can you use an EA on FTMO?

Yes, FTMO says algorithmic trading and Expert Advisors are allowed when the activity is legitimate, follows proper risk management, reflects market conditions, and does not resemble a forbidden practice. Third-party automation can still create account-allocation or duplicated-strategy concerns.

Permission to use an EA does not mean every EA or setting is compatible with the rules. Review:

• daily reset timezone;
• open-equity and commission handling;
• maximum combined exposure across positions;
• symbol and contract specifications;
• news and weekend restrictions for the selected account type;
• duplicated trades across accounts;
• behaviour after terminal restarts or connection loss;
• the applicable consistency objective.

The JPTC FTMO EA checklist covers these checks without promising an evaluation outcome.

Which trading practices does FTMO prohibit?

FTMO prohibits practices that exploit service errors, price-display problems, delays, or external slow feeds. It also restricts activity that cannot reasonably be replicated under normal market conditions or that conflicts with its terms.

The official Forbidden Trading Practices page should be treated as required reading. Examples include unusual changes in position size or trade count that create materially different risk, coordinated third-party use, and other behaviour that FTMO considers abusive.

A strategy can remain inside the numerical loss limits and still conflict with a contractual practice rule. Numerical risk controls and compliance controls are separate checks.

What usually causes an FTMO rule breach?

Breaches commonly occur when the trader monitors closed results but ignores open equity, costs, or the daily reset. They can also occur when several individually small positions create excessive combined exposure.

Operational failure modes include:

• using the wrong timezone for the daily calculation;
• failing to include swaps and commissions;
• holding correlated symbols without a portfolio exposure cap;
• using settings validated for a different account type;
• restarting a terminal without restoring risk state;
• assuming a stop order will fill at its requested price during a gap;
• copying trades to accounts with different symbol specifications.

These are reasons to keep an internal safety margin below the firm's hard limits. The margin should be based on the strategy's validation and execution conditions, not on an advertised universal setting.

How should you check FTMO rules before trading?

Check the current official objectives, selected product, account type, platform specifications, and forbidden practices before the first order. Record those inputs so the EA and risk controls can be verified against the actual account.

1. Confirm whether the account is 1-Step or 2-Step.
2. Confirm Standard or Swing and the applicable holding restrictions.
3. Record the CE(S)T reset and platform server time.
4. Check every intended instrument's contract specification.
5. Test equity-based risk controls with open positions and costs included.
6. Check portfolio exposure across symbols and copied accounts.
7. Review the setup after any rule, platform, broker, or software update.

For related context, use the FTMO account type comparison, the FTMO fee guide, and the main JPTC FTMO page. These pages explain the current structure, but FTMO's official terms remain the controlling source.