FTMO Trading Rules Explained (2026)

Understanding FTMO’s trading rules is just as important as having a profitable strategy. Every year, thousands of traders fail the evaluation not because they can’t trade, but because they misunderstand one or more of the trading objectives.

The good news is that FTMO’s rules are transparent and clearly defined. Once you understand how they work—and build your trading plan around them—they become much easier to follow.

Below, we’ll explain each rule in simple terms, provide practical examples, and share tips that can help you avoid common mistakes.

FTMO Trading Rules at a Glance

Rules vary depending on the selected FTMO product and account type.

Rule 1: Profit Target

The Profit Target is the amount of profit you must achieve to successfully complete the evaluation.

For the 1-Step Challenge, traders must generate a 10% profit before qualifying for an FTMO Account.

For the 2-Step Challenge, the evaluation is divided into two phases:

• Challenge: 10% profit target
• Verification: 5% profit target

One important detail is that the Profit Target is calculated using closed trades only. Open positions do not count until they have been closed.

Example

Rather than trying to reach the target in a few trades, most successful FTMO traders focus on consistent execution and controlled risk.

Rule 2: Maximum Daily Loss

The Maximum Daily Loss is one of the most common reasons traders fail an FTMO Challenge.

This rule limits how much your account equity can decrease during a single trading day. The calculation includes both closed trades and floating (open) losses, meaning that unrealized losses can also trigger a rule violation.

Maximum Daily Loss Limits

The daily limit is recalculated every day at 00:00 CE(S)T based on the account balance at that time.

Example

Imagine you’re trading a $100,000 FTMO 2-Step Challenge.

• Daily loss limit: $5,000
• Morning loss: -$2,000
• Open position: -$3,200

Your combined loss is -$5,200, which exceeds the daily limit and results in a failed evaluation.

This is why experienced traders monitor both realized and unrealized losses throughout the day.

Rule 3: Maximum Loss

The Maximum Loss rule defines the largest overall drawdown your account can experience.

Unlike the daily limit, this rule applies throughout the entire evaluation.

The calculation differs depending on the challenge you choose:

• 1-Step: End-of-day trailing maximum loss.
• 2-Step: Static maximum loss.

Example

For a $100,000 account:

Your account equity must never fall below the permitted threshold.

One of the most common mistakes is increasing position size after several profitable trades, believing there is “extra room” to risk. Consistent position sizing is usually a much safer approach.

Rule 4: Best Day Rule (1-Step Only)

The Best Day Rule applies only to the FTMO 1-Step Challenge and FTMO Account (1-Step).

Its purpose is to encourage consistent trading rather than relying on one unusually profitable day.

Your most profitable trading day must not account for more than 50% of your total positive trading profits. If it does, you don’t automatically fail—but you’ll need to continue trading until your overall profits become more balanced.

Example

In this scenario, Monday contributes the majority of your positive profits, so you’ll need additional profitable days before meeting the Best Day requirement.

Rule 5: Minimum Trading Days

The Minimum Trading Days rule applies only to the 2-Step Challenge.

To pass each evaluation phase, you must trade on at least four separate trading days.

A trading day is counted whenever you open at least one position during that day. Holding an existing trade without opening a new one does not create an additional trading day.

News Trading

News trading rules depend on the account type you choose.

Standard and Swing accounts have different permissions regarding trading during major economic announcements, so always check the conditions of your specific account before trading high-impact events.

Weekend Holding

Swing Accounts provide greater flexibility by allowing traders to keep positions open over weekends and during major news releases.

This makes them particularly attractive for swing traders who prefer holding trades for several days instead of closing every position before the market closes.

Expert Advisors (EAs)

FTMO allows the use of Expert Advisors and algorithmic trading, provided the strategy complies with its trading policies and does not involve prohibited practices.

If you’re using a commercially available EA, it’s worth checking whether your approach aligns with FTMO’s guidelines before starting the evaluation.

How to Avoid Breaking FTMO Rules

Most rule violations are preventable with disciplined risk management.

We recommend following these best practices:

• Risk no more than 0.5–1% per trade.
• Monitor floating losses as well as closed trades.
• Stop trading after reaching your personal daily loss limit.
• Never revenge trade after a losing position.
• Review your Account MetriX dashboard regularly.
• Keep a detailed trading journal.
• Follow a written trading plan.

Our Opinion

FTMO’s trading rules are designed to reward consistency rather than aggressive risk-taking. While they may seem strict at first, they are transparent, well-documented, and predictable.

Traders who build their strategy around disciplined risk management, controlled position sizing, and consistent execution generally find the evaluation much easier than those who focus only on reaching the profit target as quickly as possible.