Rules checked Oct 1, 2026 against the firm's own pages
FTMO evaluation rules, explained
A static overall floor that never moves on the 2-Step Challenge, and a daily loss limit that is a hard fail measured from the midnight balance.
The published numbers
| Account | Profit target | Daily loss | Max drawdown | Min days | Consistency |
|---|---|---|---|---|---|
| 100K 2-Step — Phase 1 | $10,000 | $5,000 | $10,000 static | 4 | None |
| 100K 2-Step — Verification | $5,000 | $5,000 | $10,000 static | 4 | None |
| 100K 1-Step | $10,000 | $3,000 | $10,000 trailing (EOD) | None | 50% best day |
Unlike the US futures firms, breaching FTMO's daily loss limit fails the account. A trading day counts toward the minimum only when you open a position that day.
Source: ftmo.com/en/trading-objectives/. Firms change terms without notice — the firm's own dashboard is authoritative.
How the drawdown actually works
On the 2-Step Challenge the overall limit is fixed: equity may never fall below 90% of the starting capital — $90,000 on a 100K account — however much you have made in between. It does not trail.
The daily limit is where people get caught. FTMO takes your balance at midnight CE(S)T and subtracts 5% of the starting capital; equity including open positions, swaps and commissions must stay above that line all day. A losing position held over midnight is not reflected in the new day's starting balance, so if it keeps falling, that loss eats into the new day's allowance.
The 1-Step product works differently: its overall floor trails the highest midnight balance, with a smaller 3% daily limit and a 50% best-day rule that blocks passing but is not a breach.
Worked example — surviving a deep hole under a static floor
100K 2-Step Phase 1. Three losing days take the account to $91,700 — close to the $90,000 floor, but each day stays inside the $5,000 daily allowance. Then four winning days.
| Day | Day P&L | Balance after |
|---|---|---|
| Day 1 | −$2,500 | $97,500 |
| Day 2 | −$3,000 | $94,500 |
| Day 3 | −$2,800 | $91,700 |
| Day 4 | +$4,000 | $95,700 |
| Day 5 | +$4,500 | $100,200 |
| Day 6 | +$5,200 | $105,400 |
| Day 7 | +$4,800 | $110,200 |
Result: passed — target of $10,000 reached with the minimum days met. Drawdown floor ended at $90,000.
With a static floor, early losses cost cushion but the floor never rises behind you, so recovering to the target is still a pass. Under a trailing model the same sequence would have been far tighter.
Computed at build time by the same evaluation engine the /prop copilot runs on your journal. The engine works on closed-trade balances; FTMO enforces its limits on live equity including open P&L, so a mid-trade dip the journal never sees can still end an account. Consistency rules are not modelled. Illustrative trades, not a recommendation.
Questions traders ask
Is FTMO's maximum loss static or trailing?
Static on the 2-Step Challenge — fixed at 10% below the starting capital. On the 1-Step product it trails the highest midnight balance.
How is FTMO's daily loss calculated?
From the balance recorded at midnight CE(S)T minus 5% of the starting capital (2-Step). Live equity, including open trades, swaps and commissions, must stay above it.
Does hitting the FTMO daily loss limit fail the Challenge?
Yes. Unlike the daily limits at most US futures firms, it is a hard breach.
What is the FTMO Verification target?
5% — $5,000 on a 100K account — after a 10% Phase 1 target, with 4 minimum trading days in each phase.
Track your FTMO evaluation against these rules
Pick the FTMO preset in the prop copilot and see your cushion to the daily loss and drawdown limits after every closed trade, with alerts at 50/80/95%. 7-day trial, card required at signup.
TradeFlow Quantum is not affiliated with, endorsed by, or sponsored by FTMO. Firm names are used only to describe their published rules. Descriptive information, not financial advice.