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FTMO drawdown rules explained (2026)

Short answer

FTMO uses static drawdown. The loss limit is fixed at a set distance below your starting balance and never moves. Profits widen your cushion instead of dragging the floor up behind you. The main risk is the daily loss limit, not the overall floor — one bad session can still end the account even though the static floor is far away.

Drawdown type

Static

Evaluation steps

2-step

Max allocation

$400k

Trust score

94/100

How the FTMO drawdown floor moves

The loss limit is fixed at a set distance below your starting balance and never moves. Profits widen your cushion instead of dragging the floor up behind you.

This is the rule that decides whether a FTMO account survives, more than the profit target. Read it as a moving line on your balance chart: you are only ever trading the distance between current equity and that line.

What breaches FTMO accounts most often

The main risk is the daily loss limit, not the overall floor — one bad session can still end the account even though the static floor is far away.

Combine that with the payout rules: the consistency requirement is absent

A sizing tactic that fits static drawdown

Bank a small cushion early, then size up slowly; every dollar of profit on a static account is permanent breathing room.

Rule of thumb used by traders who stay funded: risk no more than 10–15% of your remaining drawdown distance on any single trade, and recalculate after every session.

  • Calculate remaining distance to the floor before each session
  • Risk 10–15% of that distance per trade, not a fixed dollar amount
  • Treat the daily loss limit as your real stop

Has FTMO changed its drawdown rules?

Our rule-change log and firm-health score track this. FTMO currently scores 94/100 on trust. Check the rule-change log before buying — drawdown changes are usually applied to new accounts only.

FAQ

Is FTMO drawdown trailing or static?

Static. The loss limit is fixed at a set distance below your starting balance and never moves. Profits widen your cushion instead of dragging the floor up behind you.

Does open profit count toward the FTMO drawdown?

No. The static floor never moves with profit.

How do I avoid breaching FTMO drawdown?

Bank a small cushion early, then size up slowly; every dollar of profit on a static account is permanent breathing room.

How FTMO's rules compare

FTMO against the five highest-trust forex firms we track, on the rules that decide whether you actually get paid.

FirmTrustSplitEntryDrawdownFirst payout
FTMO94/10090%$345Static14 days
The5ers86/100100%$39Static14 days
Blueberry Funded84/10090%$59Static14 days
FundedNext82/10095%$299Static14 days
Alpha Capital Group82/10090%$99Static14 days
Funding Pips80/100100%$32Static5 days

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