FTMO US Risk Rules, Drawdown Math & Account MetriX (A Practical Playbook)

Master FTMO US risk rules — trade longer, earn smarter

This playbook turns Maximum Daily Loss, Maximum Loss & MetriX into simple daily checklists you can actually follow.

Updated: August 27, 2025

Quick take: FTMO US evaluates discipline with two guardrails — Maximum Daily Loss (MDL) and Maximum Loss (ML). MDL is 5% and ML is 10% of the initial balance. MDL includes today’s closed P/L plus the current floating P/L on open trades; ML looks at all-time closed + open P/L. Your Account MetriX tracks these live and flags breaches. How it Works · Challenge rules

MDL vs. ML — the two numbers that decide your longevity

Rule	What it measures	How it’s calculated	Typical limit
Maximum Daily Loss (MDL)	Today’s drawdown tolerance	Daily loss = today’s closed P/L + current floating P/L on open trades	5% of initial balance
Maximum Loss (ML)	Total drawdown tolerance	All-time closed P/L + current floating P/L since account start	10% of initial balance

Learn more: Challenge rules · Trading & Drawdowns (examples)

Walk-through: a realistic five-day scenario

Assume a $100,000 initial balance (so MDL = $5,000; ML = $10,000).

Day	Start balance	Closed P/L	Open P/L at end	Daily loss (rule)	ML check	Outcome
Mon	$100,000	−$2,500	−$1,200	−$3,700 ≤ $5,000 (OK)	Cum P/L −$3,700 ≤ $10,000 (OK)	Continue
Tue	$100,000	+$1,000	0	−$0 ≤ $5,000 (OK)	Cum −$2,700 ≤ $10,000 (OK)	Continue
Wed	$100,000	−$5,100	0	−$5,100 > $5,000 (BREACH MDL)	—	Challenge failed (MDL)
Alt-Wed	$100,000	−$4,700	−$350	−$5,050 → BREACH	—	Challenge failed (MDL)
Alt path	—	If you never exceed −$5,000 on any day but your total closed + open losses hit −$10,000 overall, you breach ML even without an MDL breach.

Key habit: Treat MDL like a daily stop. If your A-setup isn’t there, protect the day — there’s always tomorrow.

Account MetriX — your real-time risk dashboard

What MetriX shows

Live MDL/ML utilization and P/L.
Minimum Trading Days (4) progress and Profit Target status.
Notifications when you meet objectives so you can stop trading and proceed.

See: How it Works

How to use it daily

Set a personal daily stop below MDL (e.g., 60–80% of 5%).
Check floating P/L into the close — MDL counts open losses.
Flat when objectives are met to lock the pass and avoid overtrading.

Risk budget by account size (examples)

Initial balance	MDL (5%)	ML (10%)	Daily risk cap idea
$50,000	$2,500	$5,000	Target ≤ $1,500 (60% of MDL)
$100,000	$5,000	$10,000	Target ≤ $3,000
$200,000	$10,000	$20,000	Target ≤ $6,000
$400,000	$20,000	$40,000	Target ≤ $12,000

Reference: Scaling Plan (risk limits table)

Profit targets & timing — context for your plan

Profit Target: 10% in the FTMO Challenge; 5% in Verification. Minimum 4 trading days in each stage.
There’s no overall time limit to hit targets, but prolonged inactivity can result in termination per terms.

Rule details: Challenge rules (targets, MDL/ML) · Step 1 – FTMO Challenge · Step 2 – Verification

Per-trade risk that fits the rules (and human psychology)

Baselines that work

Intraday: 0.25%–0.5% per attempt.
Swing: 0.5%–1.0% per trade.
Total open risk cap: keep ≤ 1% until you’ve banked buffer.

Why small works: How much should you risk on one trade?

Event-day tweaks

Halve size around CPI/NFP/FOMC; use stop-limit orders to contain slippage.
One A+ attempt. If stopped, Stop Trading for the day.
Document spread & slippage in your journal for next time.

Preventable breaches (and the fixes)

What causes trouble	Why it breaches	Simple fix
Floating loss ignored into the close	MDL includes open P/L for today	Set a floating loss alert at 60–80% of MDL
Oversized first trade	Two losers can exceed MDL	Cap per-trade risk ≤ 0.5% intraday
Stacking correlated symbols	Open risk adds up fast across USD pairs	Cap total open risk and diversify
Abusive order changes by EA	Flooding the server is a policy issue	Throttle modifications; keep actions well under ~2,000/day

Policies: Forbidden Trading Practices · Allowed instruments & strategies

Build your daily risk script (copy/paste)

Set personal stop: 60–80% of MDL (e.g., $3,000 on a $100k).
Pre-compute lots: position size by stop distance to keep % risk consistent.
One setup at a time: avoid stacking correlated USD exposure.
Float check: if floating loss hits 60% MDL, cut risk or flatten.
MetriX check: green on objectives? Stop and lock the pass.

Ready to practice with real guardrails? Take a Free Trial, then step into the Evaluation when your process is consistent. Open FTMO US with my partner link.

FAQ — fast answers to common rule questions

Does MDL include open P/L?

Yes. MDL is today’s closed P/L + current floating P/L. If that sum hits the 5% limit, it’s a breach even if you haven’t closed the loss yet.

What happens if I breach MDL or ML?

In the Evaluation, an MDL or ML breach fails the Challenge/Verification. In a Rewards Account, a breach can lead to account termination under program rules.

Do the limits reset?

MDL resets each new trading day based on the account’s initial balance for that day; ML is cumulative. Check your Account MetriX and the Account Specifications page for timing details.

What are the Profit Targets and minimum days?

Profit Target is 10% in the FTMO Challenge and 5% in Verification. Minimum 4 trading days in each stage.

How should I set per-trade risk?

Keep intraday attempts around 0.25%–0.5% and cap total open risk ≤ 1% until you’ve banked buffer. It’s much harder to breach rules with small, repeatable bets.

Can I use an EA?

Yes, provided it behaves like a real trader would. Avoid server-flooding behavior and keep order-related actions within sensible limits.

Trade another day, then another

Respect MDL/ML, let MetriX guide you, and build streaks of clean days. Consistency wins.

Start the FTMO US Challenge

Official resources

Disclosure: FTMO US provides a simulated, educational environment. Performance in simulation does not guarantee live-market results. This article includes a partner affiliate link.