- Two-stage challenge: Phase 1 targets +10%, Phase 2 targets +5%.
- Max overall drawdown (max equity decline): 10%.
- Max daily loss: 5%.
- Minimum trading days: 4 per phase, no overall time limit.
- A consistency rule applies — your best single day can’t exceed 45% of total profit.
FTMO’s rules sit at the strict end of the industry, but they’re well-published and don’t change often. In practice, the consistency rule is what catches most experienced traders off guard.
Phase 1 (Challenge)
| Item | Rule |
|---|---|
| Profit target | +10% |
| Max drawdown | 10% |
| Max daily loss | 5% |
| Minimum days | 4 |
| Time limit | None |
Phase 2 (Verification)
| Item | Rule |
|---|---|
| Profit target | +5% |
| Max drawdown | 10% |
| Max daily loss | 5% |
| Minimum days | 4 |
| Time limit | None |
Funded account
- No profit target.
- Same drawdown and daily-loss rules.
- 80% profit split, scaling up to 90% with the Premium program.
- Consistency rule still applies — best single day ≤ 45% of total profit.
Prohibited practices
By contrast with retail brokers, the following are not allowed:
- HFT (high-frequency trading, sub-second activity).
- Hedging across accounts.
- Copy trading from external signals.
- Arbitrage strategies.
- Trading within two minutes of high-impact news releases.
Tips for staying inside the rules
- Keep risk per trade at 0.5–1% of account equity.
- Stop trading after three consecutive losses on the same day.
- Don’t blow up the consistency rule by chasing one huge win — spread profit across multiple sessions.
In short, the rules favor disciplined, distributed returns over single big swings. Plan accordingly.