Understand the key rules that apply to each trading phase and your FTMO Account.
Profit Target sets the minimum simulated profit from closed positions on the assigned account that you must achieve to continue to the next phase.
The simulated profit which must be achieved on the FTMO Challenge is in the amount of 10% of the Initial Simulated Capital.
All positions must be closed before the Profit Target can be reviewed.
This rule only applies to the FTMO Challenge: 1-Step. There is no Profit Target on the subsequent FTMO Account: 1-Step.
Example for a $100,000 FTMO Challenge:
The Maximum Daily Loss Limit is a limit below which equity (including open positions, commissions, and swaps) cannot drop at any time. If the equity drops below the limit, the rule is considered violated.
The limit is recalculated every midnight CE(S)T using the formula “account balance at midnight CE(S)T of the previous day – 3% of the Initial Simulated Capital”.
On the first day, the account balance used for the limit calculation is the Initial Simulated Capital.
The limit can increase and decrease.
This rule applies to the FTMO Challenge: 1-Step as well as the FTMO Account: 1-Step.
Limit for Day 1:
Limit for Day 2:
Limit for Day 3:
The Maximum Loss Limit is a limit below which equity (including open positions, commissions, and swaps) cannot drop at any time. If the equity drops below the limit, the rule is considered violated.
The Maximum Loss Limit is recalculated every midnight CE(S)T as the difference between:
The Maximum Loss Amount is 10% of the Initial Simulated Capital.
The limit can only increase, but never decrease.
This rule applies to the FTMO Challenge: 1-Step as well as the FTMO Account: 1-Step.
Example for a $100,000 account:
Limit for Day 1:
Limit for Day 2:
Limit for Day 3:
Best Day Rule requires that your most profitable day (“Best Day”) does not exceed 50% of your Positive Days’ Profit on the account.
To pass the FTMO Challenge: 1-Step or to be eligible for a Reward on an FTMO Account, your profit from the Best Day must not represent more than 50% of your Positive Days’ Profit.
The Best Day is a single day with the highest profit, where the profit is calculated from closed trades:
The Positive Days’ Profit is the sum of closed profits from profitable trading days. The Positive Days’ Profit is recalculated at the end of each profitable trading day (00:00 CE(S)T).
Exceeding the Best Day limit is not treated as a rule breach. However, you need to continue trading to generate additional profit until your Best Day (the most profitable day) represents 50% or less of your Positive Days’ Profit on the account.
For informative purposes, the Best Day Rule results are displayed in the Account MetriX.
This rule applies to the FTMO Challenge: 1-Step as well as the FTMO Account: 1-Step.
Example (account size does not play a role):
P&L per Day:
Results at the end of Day 5:
The Best Day is Day 2. On this day, 62.5% of the Positive Days’ Profit was achieved ($10,000 of $16,000 = 62.5%).
Because the profit achieved on Best Day exceeds the 50% allowed limit, the Best Day rule is not satisfied. If Day 2 remains your Best Day, your Positive Days’ Profit will have to be at least $20,000.
What kind of a challenge would it be if there was no target? You must make 10% of the initial balance in the FTMO Challenge and 5% in the Verification.
Profit Target is the required sum of closed positions on the assigned account, reached at any time during the unlimited Trading Period. To proceed to the next phase, all positions must be closed.
In the 2-Step FTMO Challenge you must make 10% of the initial balance in the FTMO Challenge and 5% in the Verification.
For example: On a $100,000 FTMO Challenge you will need to achieve a $10,000 Profit Target. Your account balance has to be over $110,000.
This trading objective is the first risk management rule in the Evaluation Process. It can be considered the daily account stop loss where traders are expected to refrain from trading once reached. By default, the Maximum Daily Loss is always 5% of the initial balance of the account.
If you exceed your limit for Maximum Daily Loss, it is considered a breach of a basic FTMO Challenge rule, and your FTMO Challenge is considered failed.
This rule applies to the Evaluation Process (FTMO Challenge and Verification) as well as the FTMO Account.
For example: In the $100,000 FTMO Challenge account, the Maximum Daily Loss is always $5,000. To calculate the Maximum Daily Loss and avoid exceeding this rule, traders should always keep in mind that it consists of the sum of results from closed positions and the sum of current floating results of open positions. In case you hold positions for multiple days or weeks, and have a couple of trades here and there along the timespan, it is important to remember that the Maximum Daily Loss is measured from the starting midnight balance of your account on a daily basis. In other words, at midnight Prague Time – CE(S)T, the system will recognize the balance value of the account and from this value, you are not allowed to $5,000 respectively, inclusive of the sum of results from closed positions and the sum of current floating results of open positions.
Maximum Loss can be considered as the account stop-out. The amount that you are not allowed to exceed is 10% of the initial balance, inclusive of the sum of results from open as well as closed positions.
This rule applies to the Evaluation Process (FTMO Challenge and Verification) as well as the FTMO Account.
For example: In a $10,000 FTMO Challenge account, you cannot exceed $1,000 in losses.
The Minimum Trading Days in the Evaluation Process are 4 days. On each of these days, at least one position must be initiated. A trading day is characterised as any day during which at least one trade is conducted. If a trade spans multiple days, only the day when the trade is initiated is counted as a trading day. Lastly, the execution of a trade does not have to be consecutive.
This rule applies to the Evaluation Process (FTMO Challenge and Verification). There is no Minimum Trading Days objective on the FTMO Account.
Note that the transition to a new trading day differs across various parts of the world and always corresponds to midnight CE(S)T, i.e. the time in the Czech Republic. The volume of trading activity is not further specified by any instruments, size, or duration and is completely up to you.
FTMO Challenge: 1-Step is a simplified evaluation product that consists of a single evaluation phase. Unlike FTMO Challenge: 2-Step, it does not include a separate Verification phase.
From the perspective of Trading Objectives, the two products are structured differently. More detailed information about the specific Trading Objectives is available on the Trading Objectives page.
The evaluation is... Read more
If the Best Day Rule (50%) is not met, the evaluation is not failed.
The Best Day Rule does not limit how much profit you can make in a single trade or on a single trading day. It only evaluates how large your most profitable day is in relation to your total profit.
If your most profitable day represents more than 50% of your total profit, you can simply continue trading and generate additional profitable trades. As your total p... Read more
The Best Day Rule requires that your most profitable day (“Best Day”) does not exceed 50% of your total profits on the account.
To pass the FTMO Challenge: 1-Step or to be eligible for a Reward on an FTMO Account, your profit from the Best Day must not represent more than 50 of your total profit.
The Best Day is the singl... Read more
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