The FTMO daily loss limit is 5% of the initial account size on the 2-Step Challenge and 3% on the 1-Step Challenge. It is measured on equity, so open losses count, and it is recalculated every day at 00:00 CE(S)T from your balance at that moment.
Cross it once and the account is gone, however well the rest of the evaluation went. On a $100,000 account that means $5,000 of room per day on 2-Step and $3,000 on 1-Step.
This guide covers the exact mechanics, what counts and what does not, and the setup that keeps MT5 traders inside the rule. Rules checked against FTMO's trading objectives page on 29 October 2026. Prop firms change rules several times a year, so check the source before you start a challenge.
The exact FTMO daily loss limit rule
Every day at 00:00 CE(S)T, FTMO sets a new floor for your equity:
- Daily floor = account balance at 00:00 CE(S)T minus the daily loss amount.
- Daily loss amount = 5% of the initial account size on 2-Step, 3% on 1-Step.
- Equity = balance plus the floating result of open positions, plus or minus swaps, minus commissions.
If equity touches the floor at any moment during the day, the rule is broken. On the first day the initial account size is used as the balance. The amount itself never changes, because it is a percentage of the initial size, but the floor moves with your balance each midnight.
FTMO daily loss and maximum loss by account size
| Account size | 2-Step daily loss (5%) | 1-Step daily loss (3%) | Maximum loss (10%) |
|---|---|---|---|
| $10,000 | $500 | $300 | $1,000 |
| $25,000 | $1,250 | $750 | $2,500 |
| $50,000 | $2,500 | $1,500 | $5,000 |
| $100,000 | $5,000 | $3,000 | $10,000 |
| $200,000 | $10,000 | $6,000 | $20,000 |
The maximum loss works differently per path. On the 2-Step it is static: your equity may never drop below 90% of the initial account size. On the 1-Step it trails at end of day: the floor is 10% below the highest balance recorded at 00:00 CE(S)T, and it only ever moves up.
2-Step vs 1-Step at a glance
| 2-Step Challenge | 1-Step Challenge | |
|---|---|---|
| Profit target | 10%, then 5% (Verification) | 10% |
| Maximum daily loss | 5% | 3% |
| Maximum loss | 10%, static | 10%, end-of-day trailing |
| Minimum trading days | 4 per phase | None listed |
| Time limit | None | None |
| Consistency | None listed | Best day max 50% of total profit (how it works) |
The 1-Step is faster on paper and much tighter in practice. A 3% daily box leaves room for maybe two bad trades at normal size. That is exactly the space where one revenge trade does the damage.
Four mechanics traders miss
- It measures equity, not balance. Down $350 in closed losses on a $10,000 2-Step account with an open trade floating $200 in the red? Equity is $550 below the day's starting balance. That is past the $500 limit. Breach, even though you never closed the trade.
- It triggers the moment the line is crossed. If the floating loss recovers minutes later and you close green, the breach is already recorded. FTMO looks at the lowest point, not the end of the day.
- The reset is midnight Prague time. 00:00 CE(S)T, not midnight where you live. A position held across that moment starts the new day with its floating loss already inside your equity, while the new floor is set from balance. You can begin a day half used up.
- Swaps and commissions count. They come straight out of equity. If you are close to the line late in the day, costs alone can push you over.
The math of breach: how a $500 buffer disappears
On a $10,000 2-Step challenge you start the day with $500 of room. Per-trade risk is 1% ($100). You take three trades and lose all three: -$300. Still alive, $200 left.
Then the revenge trade. Size has crept to 1.5x because you want it back faster. Loss: $150. Down $450. Room left: $50.
Final trade. You size up again, telling yourself this is the recovery setup. Stop fires at -$250. Down $700. Challenge over.
Three trades that should have left you at -3%, then one or two oversized revenge trades through the floor. On a 1-Step account the same pattern ends the day two trades earlier. The trader almost always saw the line coming and took the trade anyway, because the post-loss version of you is not the one who wrote the plan. The biology is in the cortisol article.
What FTMO traders typically get wrong
1. Treating the limit as a target instead of a floor
"I can lose 5% today" turns the limit into a number you aim at. The firm's figure is where you fail. Run a personal limit of 60 to 70 percent of it: about 3% on 2-Step, about 2% on 1-Step.
2. Sizing up after losses
After a string of losers the next trade feels like it has to win. It does not. Bigger size after a loss is how a controlled red day becomes a breach. See the gambling fallacies traders fall for.
3. Holding risk into the 00:00 CE(S)T reset
A losing position held over the reset hurts twice: against today's floor and as a head start on tomorrow's. If you trade from the Americas or Asia, write down what midnight Prague is in your own time.
4. Ignoring the new consistency maths on 1-Step
Since 12 October 2026 your best day on the 1-Step may not exceed 50% of total profit, and losing days count against total profit. Every red day you let run makes passing slower. The full explanation is here.
The discipline setup that survives an FTMO evaluation
There is no deadline anymore, so there is no reason to force a day. The setup:
1. A personal daily stop well inside the firm's. About 3% on 2-Step, 2% on 1-Step. The buffer absorbs slippage, swaps and the floating loss FTMO counts before you close.
2. Fixed per-trade risk of 0.5% to 1% of the initial size. Half a percent gives you six losing trades of room at a 3% stop. One percent gives you three.
3. A hard cap on trades per day. Three is a common number. It is the structural protection against the revenge loop.
4. No re-entry right after a loss. Give it time. The urge to make it back fades in minutes if you are not able to act on it. See urge surfing.
5. Something other than you holds the line. The plan is written by the calm version of you and broken by the tilted one. That is the gap an external block closes.
How EmotionLock fits the FTMO setup
EmotionLock connects to your MT5 challenge account with the read-only investor password and blocks your trading apps on iPhone the moment you hit your own daily limit. You choose one mode:
- Trades per day, for example 3. Fits traders whose problem is the extra click.
- Maximum daily loss in your account currency, for example $2,500 on a $100,000 2-Step account or $1,800 on a 1-Step. The lock fires when the net result of today's closed trades, including commission, swap and fees, reaches your number.
Be clear on one difference: FTMO counts floating losses, EmotionLock's loss mode counts closed trades. That is why the EmotionLock number should sit well below the firm's, and why every trade still needs a stop-loss in MT5. EmotionLock cannot open or close positions. It stops the next decision, the stop-loss handles the open one. Add MetaTrader 5 and anything else that pulls you back in to the blocked apps.
EmotionLock starts with 4 days free, then €24,99 (50% off, normally €49,99) one-time activation with the first month included, then €9,99 per month.
Sources
- FTMO. Trading Objectives.
- Dickerson, S. S. and Kemeny, M. E. (2004). Acute stressors and cortisol responses: a theoretical integration and synthesis of laboratory research. Psychological Bulletin, 130(3).
- Bowen, S. and Marlatt, A. (2009). Surfing the urge: brief mindfulness-based intervention for college student smokers. Psychology of Addictive Behaviors, 23(4).
- MetaQuotes. MetaTrader 5 Help: Connect to an Account (master and investor passwords).
Frequently asked questions
What is the FTMO daily loss limit?
On the FTMO 2-Step Challenge (both phases and the FTMO Account that follows) the Maximum Daily Loss is 5% of the initial account size. On the 1-Step Challenge and its FTMO Account it is 3%. On a $100,000 account that is $5,000 on 2-Step and $3,000 on 1-Step. Your equity, including floating losses, may not drop below that day’s limit at any moment.
When does the FTMO daily loss limit reset?
FTMO recalculates the limit every day at 00:00 CE(S)T, which is midnight in Prague, not midnight in your own time zone. The new limit is your account balance at that moment minus the daily loss amount (5% or 3% of the initial account size). On the first day the initial account size is used as the balance.
Does the FTMO daily loss limit count open trades?
Yes. FTMO checks equity, which is balance plus or minus the floating result of open positions, swaps and commissions. A trade you have not closed can breach the limit on its own if it moves far enough against you, even if it later recovers.
What happens if I make money on a day?
The next day’s limit moves up with your balance, because it is calculated from the balance at 00:00 CE(S)T. If a $100,000 2-Step account closes the day at $102,000, the next day’s floor is $97,000, not $95,000.
Is there still a 30-day time limit on the FTMO Challenge?
No. FTMO currently lists no time limit on its challenges. The 2-Step Challenge requires at least 4 trading days per phase. No deadline removes one source of pressure, but the daily loss limit still applies on every single day you trade.
Can EmotionLock prevent an FTMO daily loss limit breach?
It can stop the session that usually causes one. EmotionLock reads your MT5 challenge account with the read-only investor password and blocks your trading apps on iPhone when you hit the daily trade limit or daily loss limit you set. It cannot close an open position, and its loss mode counts closed trades only, so keep a buffer below FTMO’s equity-based limit and always use a stop-loss in MT5.
The summary
FTMO gives you 5% a day on the 2-Step and 3% on the 1-Step, measured on equity and reset at midnight Prague time. It ends more challenges than any other rule, and it is almost always a behavioural failure, not a strategy failure. Set your own stop lower than the firm's, cap your trades, and let something fire before the revenge trade does. For MT5 traders on iPhone, that is what EmotionLock is for.