FTMO Challenge Rules: Products, Equity Limits and Consistency

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.

Checked against current official sources on 16 October 2026. This guide covers CFD 1-Step and 2-Step, not a universal FTMO rule set. Instant CFD has separate intraday balance-trailing and Consistency rules, and FTMO Futures is a separate offering. Record the exact product and order or merge date before applying any formula.

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 10% profit target, a 3% Maximum Daily Loss, a 10% end-of-day trailing Maximum Loss, and the applicable Best Day or Consistency condition for the order-date cohort.
• 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 monitors equity, including open results, swaps and commissions. The daily floor itself is calculated from the balance recorded at 00:00 CE(S)T minus a fixed amount: 3% of Initial Simulated Capital for 1-Step or 5% for 2-Step. It does not use the greater of midnight balance and equity or recalculate the percentage from each new day’s balance.

Fictional arithmetic, not a risk recommendation: with 100,000 USD initial capital and 102,000 USD midnight balance, the 2-Step daily floor is 97,000 USD (102,000 minus 5,000); 1-Step is 99,000 USD (102,000 minus 3,000). The overall loss floor also applies. A position held across the reset can lose floating profit while the closed balance stays unchanged.

Read equity and the correct CE(S)T reference as well as the actual platform clock. A local clock, closed-trade counter or balance-only monitor is insufficient. Test all positions, costs and interacting systems against both applicable loss floors.

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 Maximum Loss floor is static: Initial Simulated Capital minus 10% of that initial amount. For 1-Step, the floor is the higher of Initial Simulated Capital and the highest balance recorded at the end-of-day reference point, minus a fixed amount equal to 10% of Initial Simulated Capital. The floor can rise but cannot fall; the percentage is not recalculated from a higher balance. For a fictional 100,000 USD initial amount and a highest end-of-day balance of 104,000 USD, the 1-Step floor is 94,000 USD (104,000 minus 10,000), not 93,600 USD. This is arithmetic illustrating the rule, not a risk recommendation.

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?

For 1-Step orders created from 12 October 2026 at 09:00 platform time GMT+3, and 1-Step Accounts merged from that date, Consistency compares the Best Day with total closed net profit from all trading days, including loss days. The Best Day must be no more than 50% of that total. Earlier direct orders retain the Best Day Rule, using Positive Days’ Profit only, even after passing, a Reward withdrawal or a subsequent Account. Check the actual order terms.

A fictional sequence of 600, −200, 400 and 200 USD gives 1,000 USD net profit, 1,200 USD Positive Days’ Profit and a 600 USD Best Day: 60% under the new denominator and 50% under the old one. The sums illustrate definitions, not a trade recommendation. Neither an unmet Best Day nor Consistency condition is an immediate rule breach; further legitimate activity may be needed before passing or Reward eligibility.

Do not use a fixed lot-size average, the average of the top three days or a daily-loss guard as a substitute for the applicable formula. FTMO prohibits artificially spreading profits across days without proportionate risk distribution to circumvent these rules. The 2-Step objectives do not impose the same Best Day formula, while the general risk-management and forbidden-practice conditions still apply.

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.

Operational failure cases to check

A breach can occur when the trader monitors closed results but ignores open equity, costs or the daily reset. Several individually small positions can also create excessive combined exposure. These are operational failure cases, not a measured ranking of why traders fail.

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. Treat these as related background links; the official terms for the actual account determine the rules.

News, market closures and fee conditions

FTMO restricts executions on affected instruments two minutes before and after selected news releases, including Stop Loss, Take Profit and pending orders. Challenge, Verification and Swing accounts are expressly exempt, subject to forbidden practices. The separate requirement to close positions before market breaks longer than two hours has the same stated account exceptions. Check the actual symbol schedule and phase rather than applying a universal Friday or overnight rule.

For 2-Step, the official fee FAQ describes refund of the initial purchase fee when the first Reward withdrawal is requested. It states that 1-Step and Instant entry fees are not refundable. Do not treat completion of an objective, purchase of software or an unreviewed account breach as a guaranteed refund or Reward entitlement.

JPTC product and evidence scope

EA Hub downloads require the actual file, platform and version report to be checked against the chosen account. They are not blanket FTMO certification. The separately hosted JPTC Algo requires no client installation or VPS and is not an FTMO evaluation takeover. Its company-published broker monthly figures on /results are not an independent audit, client Challenge outcomes or a forecast. General EA permission does not override FTMO’s personal-use rules against account access or trading by third parties.

Sources checked 16 October 2026: Trading Objectives · 1-Step update 8 October 2026 · News · Market closures · Forbidden Trading Practices · Strategies and EAs · Entry fee · Scaling Plan.