Know your buffer before you breach the 5% Max Daily Loss
U.S. FTMO rule: current daily loss = today’s closed P/L + current open P/L (commissions & swaps included). Use the live calculator below.
Start the FTMO US ChallengeUpdated: August 27, 2025 · U.S. rules
Max Daily Loss (MDL) — the rule in one formula
Current daily loss = (today’s closed P/L) + (current open P/L) + (today’s commissions & swaps)
Stay safe condition: current daily loss ≥ −(5% of initial balance)
MDL Buffer Calculator (client-side, no APIs)
MDL limit (5% of initial)
$5,000
Usage today: 0%
Current daily loss (closed + open + costs)
$0
Status: OK
Room before breach — now
$5,000
Extra adverse move you can still take right now.
Room before breach — if flat
$5,000
Close everything → this is your remaining buffer for today.
When does MDL reset? (live countdown)
FTMO’s MDL resets at midnight CE(S)T. That’s the Europe/Prague timezone.
Resets in
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Your local reset time
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Worked examples (so there’s zero confusion)
| Initial balance | MDL (5%) | Closed P/L today | Open P/L now | Current daily loss | Breach? | Room now |
|---|---|---|---|---|---|---|
| $100,000 | $5,000 | $+4,000 | $−3,000 | $+1,000 | No | $9,000 |
| $100,000 | $5,000 | $−2,000 | $−3,001 | $−5,001 | Yes | $0 |
| $200,000 | $10,000 | $0 | $−7,500 | $−7,500 | No | $2,500 |
MDL vs ML — quick reference
| Rule | What it is | Level | What counts | When it resets |
|---|---|---|---|---|
| Maximum Daily Loss (MDL) | Daily stop for the account | 5% of initial balance | Today’s closed P/L + current open P/L + costs | Midnight CE(S)T (Europe/Prague) |
| Maximum Loss (ML) | All-time equity floor | 10% of initial balance | Closed & open across the period | Never (until Evaluation ends) |
Notes & best practices (to actually pass & scale)
- Size from the rule, not the setup. Keep planned total open risk ≤ ~1% until you have buffer; leave room under 5% MDL for slippage/spread.
- Flatten before request days. Rewards require you to be flat & in profit; closing removes floating loss from the MDL sum.
- Remember the reset timezone. Profits that “expanded” your MDL today don’t carry to the next day after midnight CE(S)T.
- Commissions & swaps count. Don’t ignore overnight costs; they reduce your room.
- Journal MDL/ML usage. Add a column in your log for “room before breach” at entry time. If < 2× intended risk, skip the trade.
Want a stress-free Evaluation?
Use this MDL calculator before every entry. Stay under 5% daily and 10% overall, then plan your Reward and Scaling cycles.
Start the FTMO US ChallengeFAQs — Max Daily Loss (U.S.)
What exactly counts toward MDL?
Today’s closed P/L plus current open P/L, including commissions and swaps. If that sum reaches −5% of the initial balance, you breach.
Does MDL reset daily?
Yes. It resets at midnight CE(S)T (Europe/Prague). Intraday profits that raised your buffer do not carry over to the next day.
How is Maximum Loss (10%) different?
ML is the all-time equity floor: your equity must never fall below 90% of the initial balance at any moment during the period.
Official resources
- How it Works: targets & drawdown limits
- Trading & Drawdowns (U.S.): MDL formula & resets
- Academy: Maximum Daily Loss (examples & timezone)
- Academy: Maximum Loss (10%) explained
Disclosure: FTMO US operates a simulated environment. Performance in simulation does not guarantee results in live markets. This article includes a partner affiliate link.