Before you can trade for FTMO, we need to see how you can manage risk. Because of this, we have developed Trading Objectives. There are four basic Trading Objectives you need to know to become an FTMO Trader and to trade up to $200,000 on your FTMO Account. The second rule is called Maximum Daily Loss.
The Maximum Daily Loss is one of the most important Trading Objectives. We have developed this rule so that traders can become experienced risk managers with habits of professional traders. We could call this trading objective “trader’s daily Stop Loss”. For a Normal risk account type, the limit is set at 5% of the initial balance.
Let’s take the Normal risk account with the 5% limit as an example. If you have a $200,000 FTMO Account, you must never exceed the total equity loss of $10,000 in one day. That means if you had a losing streak and the total loss would result in -$8,000 in one trading day, your permitted loss for the rest of the day would be $2,000 before exceeding the limit. Bear in mind that the Maximum Daily Loss works with your equity, and therefore both floating losses and your closed positions are included in the calculation. The limit is inclusive of commissions and swaps.
Be careful, as the Maximum Daily Loss resets at midnight CE(S)T! Let’s say you had a great start to the week and your Monday trading session resulted in a closed profit of $4,000. Your Maximum permitted Loss for the rest of the day is now at $14,000. If you would now open a new trade which would go into a $13,000 floating loss, then up until 11:59 PM, you would be still staying within the limit, because, as mentioned previously, your permitted loss for the rest of the day is $14,000.
However, the Maximum Daily Loss resets at midnight CE(S)T, so at 12 AM on Tuesday your permitted loss is by default reset to $10,000. If you would still be carrying the $13,000 floating loss, you would exceed the limit as the profits made the previous day no longer count in a new day.
The Maximum Daily Loss resets at midnight CE(S)T, which means you should use the FTMO timezone converter to check when exactly the Maximum Daily Loss resets in your local time. For example in Tokyo time, which is at GMT+9, the Maximum Daily Loss limit will reset exactly at 7 AM Tokyo time.
The Maximum Daily Loss is a rule that is beneficial to both FTMO and traders, because it clearly defines risk for the company and gives all traders plenty of room to trade with a reasonably adjusted risk.
FAQs
If you are able to repeatedly pass our Free Trial, then there are chances you can succeed in the full FTMO Challenge as well. This should encourage you to start your journey to become one of our FTMO Traders.
How many people pass FTMO challenges? ›
The FTMO challenge has a reputation for being extremely difficult to pass. Across FTMO's various account levels, it is estimated that only around 10% of traders are able to successfully complete the evaluation and become a funded trader. This means approximately 90% of those who attempt the challenge end up failing.
Can I pass FTMO challenge in one day? ›
There is no time limit within which you need to pass the Profit Target, the Trading Period is indefinite. As soon as all the Trading Objectives of your FTMO Challenge are met and your results are reviewed, you can proceed to the Verification phase. The minimum time to complete an FTMO Challenge is 4 trading days.
Why is FTMO banned in India? ›
Due to regulatory developments and business decisions based on risk management considerations, FTMO does not accept clients in India, the Russian Federation, the Republic of Belarus, the Republic of Indonesia, Cuba, Venezuela, Sudan, and South Sudan.
Did FTMO ban US traders? ›
In what appears to be related to the latest MetaQuotes crackdown on the proprietary trading landscape, prop firm FTMO has stopped onboarding US clients, Finance Magnates has learned. New traders attempting to register from a US IP address were unable to complete the registration form.
How many times can you fail FTMO? ›
You will be removed from the Premium Programme if one of the following situations occurs: You fail the FTMO Account which is part of the Premium Programme. You fail 3 accounts regardless of the of the stage (FTMO Challenge, Verification, FTMO Account)
What is the biggest FTMO payout? ›
Dariusz from the USA exceeded everyone's expectations and made his dreams come true. As our FTMO Trader with a maximum allocation, he beat the previous record payout of $500,180 thanks to his profit of $1,206,225, the biggest payout in the industry!
Do people make money from FTMO? ›
Therefore, the Trader never gains access to a real "live account" or "margin account" etc. However, the FTMO Trader will receive a real financial reward for his trading on the FTMO Account, as long as his trading is profitable and there is no violation of the contractual conditions.
What is the max loss on FTMO? ›
At FTMO, we understand that market conditions might vary and that's why we offer our traders a generous 10% Maximum Loss buffer and 5% Maximum Daily Loss. These conditions are in a ratio of 1:1 (loss to profit), which is the top industry standard.
What is the 2 minute rule in FTMO? ›
During the FTMO Challenge & Verification, you can ignore the rule of not trading in the window of 2 mins before to 2 minutes after the specific releases. We don't enforce it as we want to make it easier for you to pass the evaluation process.
Another important aspect of the FTMO 200k account price is the minimum deposit required to start trading. The minimum deposit for the $200,000 account is $5,000. This means that once you have paid the $485 fee, you will need to deposit an additional $5,000 to start trading.
What if I lose money in FTMO? ›
When you lose an FTMO challenge, you won't actually be losing something except for the fee amount that you paid for the challenge. However, you won't be able to continue with the challenge and your eligibility would be lost. What leverage is FTMO?
Is FTMO no longer available in the US? ›
FTMO just banned US citizens: USA update – January 2024: Since the establishment of our company, our goal has been to provide top-quality services for our clients. Unfortunately, at present, we are not able to do that in the United States due to specific conditions in the market segment there.
Are prop firms legal in the US? ›
It is not illegal to operate or trade with a prop firm. However, where most online prop firms come unstuck is in their business practices and terms of service. Some of the largest prop firms that I'm sure you would have heard of have fallen victim to these mistakes over the last few months.
What country is FTMO from? ›
FTMO is a leading firm in the field of modern prop trading based in the Czech Republic. It was founded in 2015 under the name Získej účet (Get an Account).
Does FTMO actually work? ›
FTMO's payout process is straightforward and transparent. Once a trader successfully completes the Challenge and Verification phases, they are eligible to receive a funded account with FTMO. The funded account comes with a profit split of 70/30, where the trader receives 70% of the profits made while FTMO retains 30%.
Does FTMO give you real money? ›
With FTMO, once you get to the FTMO Trader stage you can receive real rewards for your performance. You can withdraw your reward anytime between 14 to 60 days from your first trade on your FTMO Account (Profit Split). Periodically, we can allocate more balance into your FTMO Account if you're consistently profitable.
Can FTMO be trusted? ›
Having successfully operated since 2015, we provided thousands of clients with their FTMO Accounts, and in total, we have paid out over $160 million. We've also been featured in Forbes and awarded by Deloitte and EY multiple times.
How much do people make from FTMO? ›
In one trading period on FTMO Account, you executed on average 117.9 trades, and we paid you an average of $4,685.
