FTMO Max Drawdown Rule, Explained
Rules verified 2026-07-05 · official source
FTMO's max loss line is static (fixed line, never moves). Hit the line — even for a moment — and the account fails.
How the line moves
FTMO uses a fixed line: it's set when your account opens and it never moves, up or down. Profit doesn't tighten it, and losses don't get extra room. That makes it the most forgiving drawdown style to trade around — you always know exactly where the line is.
Daily loss (5%) is anchored to your START-OF-DAY balance (00:00 Prague) and evaluated on equity, so open-position floating P&L counts intraday.
The numbers, by account size
Rule mechanics are identical across FTMO sizes — only the dollar amounts scale.
| Plan | Max drawdown | Type |
|---|---|---|
| 10K Challenge | $1,000 | Static |
| 25K Challenge | $2,500 | Static |
| 50K Challenge | $5,000 | Static |
| 100K Challenge | $10,000 | Static |
| 200K Challenge | $20,000 | Static |
How traders actually breach it
The classic breach: sizing up after losses. A static line means every loss spends permanent room — a $1,000 budget for the whole account, not per day.
TradersGuild tracks this rule live against your trade log and alerts you while there's still room — "you're $220 from the line" beats finding out from a breach email. Tracking is free for your first account.
Recent FTMO rule changes
2026-07-05 — Corrected the evaluation minimum to 4 trading days per phase (Challenge and Verification) — this requirement was never removed; only the time limit was.
2026-07-04 — Initial rule set encoded: static 10% max loss, 5% daily (balance-based), no minimum trading days.
FAQ
Is FTMO's drawdown static or trailing?
It's static (fixed line, never moves).
Does open (unrealized) profit move the FTMO drawdown line?
No — the line is fixed from day one and never moves.
What happens if I touch the FTMO max loss line?
The account fails immediately — even a momentary touch by open equity counts. There is no warning and no grace amount, which is why tracking your live distance to the line matters.
Stop memorizing rules. Track them.
TradersGuild encodes these exact rules and recomputes every line the moment you log a trade — live meters, and a warning while you still have room. Runs on the trades you log. Free for your first account.