FTMO drawdown rules
When the loss limit rises, what it is measured against, where it stops rising and what a payout does to it, in the firm’s own words.
What makes the loss limit rise · phase 1, funded
Our reading
It rises with the day's closing balance
“The Maximum Loss Limit is recalculated daily at 00:00 CE(S)T as the difference between: the highest account balance achieved at 00:00 CE(S)T of any preceding trading day or, if higher, the amount of Initial Simulated Capital, and the Maximum Loss Amount, which is 10% of the Initial Simulated Capital.”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 1-Step
What taking a payout does to the limit
Our reading
It loosens, and starts over on a new account
“The limit can only increase, but never decrease. However, when a Reward is withdrawn and a new FTMO Account is provided, the Maximum Loss Limit fully resets, returning the first-day limit to 90% of the Initial Simulated Capital.”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 1-Step
Daily limit · phase 1, funded
“The Maximum Daily Loss rule establishes a limit (the Maximum Daily Loss Limit) below which your account equity (i.e., Balance + Open Positions P/L ± Swaps – Commissions) cannot drop. If the equity drops below this limit, the rule is considered violated. The Maximum Daily Loss Limit is recalculated daily at 00:00 CE(S)T as the difference between: the account balance recorded at 00:00 CE(S)T of the current day and the Maximum Daily Loss Amount, which is 3% of the Initial Simulated Capital.”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 1-Step
What makes the loss limit rise · phase 1, phase 2
Our reading
It does not move at all
“The Maximum Loss Limit is calculated as the difference between: the Initial Simulated Capital and the Maximum Loss Amount, which is 10% of the Initial Simulated Capital.”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 2-Step
Total loss allowed · phase 1, phase 2
Our reading
10%
“the Maximum Loss Amount, which is 10% of the Initial Simulated Capital”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 2-Step
Daily limit · phase 1, phase 2
“The Maximum Daily Loss rule establishes a limit (the Maximum Daily Loss Limit) below which your account equity (i.e., Balance + Open Positions P/L ± Swaps – Commissions) cannot drop. If the equity drops below this limit, the rule is considered violated. The Maximum Daily Loss Limit is recalculated daily at 00:00 CE(S)T as the difference between: the account balance recorded at 00:00 CE(S)T of the current day and the Maximum Daily Loss Amount, which is 5% of the Initial Simulated Capital.”rules page · ftmo.com/en/trading-objectives/ · 2026-07-25
Plans: FTMO Challenge: 2-Step
This is what the firm publishes, not our opinion. When a firm changes a sentence we see it, and the date moves.