FTMO Rules 2026: Drawdown Limits, Trading Restrictions, and Compliance Guide
FTMO rules 2026 focus on strict drawdown controls and trading restrictions that apply uniformly across all 1-step challenge accounts. These parameters scale with account size while maintaining the same structure. Traders must master both daily loss limits and end-of-day trailing drawdown to pass evaluations and retain funded status.
| Feature | Details |
|---|---|
| Daily Loss Limit | Varies by size (example: $3,000 on $100,000 account) |
| Max/Trailing Drawdown | EOD trailing, equals profit target (example: $10,000 on $100,000 account) |
| Profit Target | 10% of account size |
| Min Trading Days | 0 |
| Consistency Rule | Yes |
| News Trading | Not allowed |
| Overnight/Weekend Holding | Not allowed |
Review the complete rule set and current pricing on the Lune FTMO review page.
Drawdown Rules Explained
FTMO enforces two primary loss controls on every account. Daily drawdown resets at midnight server time. Maximum drawdown trails only at the end of each day based on the higher of balance or equity.
Daily Drawdown Calculation
The daily limit equals 3 percent of the starting account balance. On a $100,000 account this equals $3,000. Equity cannot fall below the prior close minus this amount. A breach ends the challenge immediately.
Maximum Trailing Drawdown
The trailing stop equals the profit target and moves upward only after each trading day closes. It locks in gains once the account reaches the 10 percent profit target. On a $50,000 account the initial limit sits at $5,000 and trails to $4,000 after a $1,000 profit day.
| Account Size | Daily Loss Limit | Max Drawdown | Trailing Type |
|---|---|---|---|
| $10,000 | $300 | $1,000 | EOD |
| $25,000 | $750 | $2,500 | EOD |
| $50,000 | $1,500 | $5,000 | EOD |
| $100,000 | $3,000 | $10,000 | EOD |
| $200,000 | $6,000 | $20,000 | EOD |
Worked example on a $100,000 account: starting max drawdown equals $10,000. After a $4,000 profit day the new high-water mark becomes $104,000. The trailing stop shifts to $94,000. Any close below this level triggers an immediate breach.
Trading Restrictions and Allowed Strategies
FTMO applies multiple restrictions that directly affect strategy selection. These rules emphasize risk control and consistent performance across evaluation phases.
News Trading Restriction
News trading is not allowed. Positions cannot open or remain open during high-impact economic releases. Scalpers lose breakout opportunities around events such as NFP. Swing traders must close all positions well before scheduled announcements.
Overnight and Weekend Holding
Overnight and weekend holding are both prohibited. All positions must close by the end of each trading day. This restriction favors intraday scalping styles while forcing swing traders to compress holding periods.
Consistency Rule
The consistency rule is active. Profit distribution across days receives monitoring. A single day contributing more than a set percentage of total profits can fail the evaluation even if the overall target is met.
Traders comparing multiple firms can review additional options in the prop firm directory.
Common Rule Violations and Prevention
Most breaches stem from small oversights rather than strategy failure. Tracking limits in real time prevents the majority of these issues.
Consistency Rule Breaches
Uneven daily results trigger reviews. Traders who generate 80 percent of monthly profit in one session often fail. Spread trades evenly and maintain similar lot sizes across sessions to stay compliant.
Overnight and Weekend Holding Mistakes
Positions left open past market close create gaps that breach rules. Set automatic close orders and platform alerts at session end to avoid this error.
Drawdown Limit Slips
One extra trade after nearing the daily cap frequently causes breaches. Monitor equity after every order and stop trading once either limit reaches 75 percent utilization.
Using Risk Tools for FTMO Compliance
Traders managing multiple evaluations benefit from automated guardrails that match firm parameters. Trading Journal and risk features help track performance across accounts without manual spreadsheets. Lune's approach connects risk controls directly to connected platforms for futures traders, though FTMO operates in forex.
Compare additional prop firm options through the prop firm comparison page.
- Daily loss limit equals 3 percent of starting balance and resets at midnight server time.
- End-of-day trailing drawdown equals the 10 percent profit target and locks in gains once reached.
- News trading, overnight holding, and weekend holding are all prohibited on 1-step challenges.
- Consistency rule monitoring requires even profit distribution across trading days.
- Real-time alerts at 50 percent and 75 percent of each limit reduce accidental breaches.
Frequently Asked Questions
What happens if I break a FTMO rule?
Breaking an FTMO rule results in immediate termination of the trading account. Access to the funded account ends and any profit split eligibility is forfeited. FTMO provides a report detailing the specific breach.
Does FTMO have a consistency rule?
Yes, FTMO enforces a consistency rule on 1-step challenge accounts. Traders must maintain steady performance across days. Large single-day swings relative to total profits can fail the evaluation.
Can I trade the news on FTMO?
No, news trading is not allowed. Positions cannot open or remain open during high-impact economic releases on any 1-step plan.
What is the FTMO daily drawdown limit?
The daily drawdown limit equals 3 percent of the initial account balance. It resets each trading day at midnight server time. Exceeding it triggers an automatic breach.
Can I hold positions overnight or over the weekend with FTMO?
No, overnight and weekend holding are not permitted on 1-step challenges. All positions must close by the end of each trading day.
Is the FTMO drawdown trailing or static?
FTMO uses an end-of-day trailing drawdown model. The limit moves upward with new equity highs and stops trailing once the profit target is reached.
Learn payout schedules in the FTMO payouts guide. For the full rule set and side-by-side firm comparisons visit the Lune FTMO review.
Lune Research & Editorial Team
The Lune Editorial team covers futures trading, prop firm evaluations, automation, and the trading-tooling landscape. Every post is researched against primary sources, real platform data, and Lune's own infrastructure benchmarks.
Published: October 13, 2026
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