The rules by model
These figures come from FTMO's "Trading Objectives" page, read on October 18, 2026. The percentages apply to the starting simulated capital, whatever the account size.
| Rule | 1-Step | 2-Step | Instant |
|---|---|---|---|
| Profit target | 10% | 10% (Challenge), 5% (Verification) | none |
| Maximum daily loss | 3% | 5% | 3% |
| Maximum overall loss | 10%, trailing at end of day | 10%, fixed | 10%, trailing intraday |
| Minimum trading days | none | 4 per phase | none |
| Consistency rule | best day ≤ 50% of total profit | not stated on this page | best day ≤ 30% of total profit |
The page doesn't mention a time limit to reach the target. The 1-Step 50% consistency rule applies to accounts opened from October 12, 2026; older accounts follow the previous rule, measured on positive days.
Rules change. Before buying a challenge, re-read FTMO's official page: this guide is dated and doesn't replace it.
How the daily loss is calculated
The daily limit resets every day at midnight, Central European Time: it's the balance recorded at that moment, minus the allowed daily loss. On the first day, the starting capital is the base.
What counts is your equity, not just your closed trades: an open position in floating loss brings your account closer to the limit before you even close it. It's the most common reason traders hit the limit "without losing a trade".
Fixed or trailing: what changes
On 2-Step, the maximum loss is fixed: it starts from the starting capital and doesn't move. On a $100,000 account, the floor is $90,000 for the whole challenge.
On 1-Step, it trails at end of day: it's based on your highest balance at midnight and can only go up. The more you make, the higher that floor rises, and it never comes back down. On Instant, it follows your highest balance during the day, as soon as a trade closes at a new high.
For the general logic behind these two limits, see the guide on drawdown.
How many losses to hit the daily limit
With a fixed risk per trade, the math is simple: daily limit ÷ risk per trade. Excluding fees and slippage, which make you hit the limit sooner:
| Risk per trade | 2-Step (5% per day) | 1-Step and Instant (3% per day) |
|---|---|---|
| 0.5% | 10 losses | 6 losses |
| 1% | 5 losses | 3 losses |
| 2% | 2.5 losses | 1.5 losses |
At 1% per trade, three losses in a row are enough to hit a 1-Step daily limit. That's where revenge trading costs an account: after two losses, you size up to win it back and the third one ends the challenge. The challenge simulator estimates your odds from your win rate and risk per trade.
Choosing your risk per trade
The right risk depends on the model. On 2-Step, 1% leaves five losses of room in the day. On 1-Step or Instant, 0.5% gives six losses of room, which leaves time to stop before the limit. See also the 1% rule and the guide how to pass a prop firm challenge.
In Kova, you set a maximum loss per day and a maximum number of trades, and the drawdown guardrail tracks your prop firm accounts. The free diagnostic shows how many of your losses come from a chain after a loss.
FAQ
What is FTMO's maximum daily loss?
3% of the starting capital on 1-Step and Instant, 5% on 2-Step, according to the official objectives page read on October 18, 2026. It's measured on equity, against the midnight balance (Central European Time).
What is FTMO's profit target?
10% on 1-Step, 10% then 5% on 2-Step (Challenge then Verification), and no target on Instant.
What is the minimum number of trading days?
4 trading days per phase on 2-Step. A trading day is a day with at least one position opened. 1-Step and Instant have no minimum.
Is the maximum loss fixed or trailing?
It depends on the model: fixed on 2-Step, trailing at end of day on 1-Step, trailing intraday on Instant.
Sources
- FTMO, "Trading Objectives" (ftmo.com/en/trading-objectives), accessed October 18, 2026