What is the FTMO Challenge?

The FTMO Challenge is a two-phase evaluation used by FTMO, a proprietary trading firm, to assess whether a trader can manage risk consistently before being funded. Phase 1 requires a 10% profit target with a 5% daily loss limit and 10% overall loss limit within 30 days. Phase 2 requires a 5% profit target with the same loss limits within 60 days. Traders who pass both phases receive a funded account with an 80–90% profit split.

Are the FTMO loss limits based on starting balance or current equity?

The daily loss limit (5%) is measured from the equity at the start of each trading day. The overall loss limit (10%) is measured from the initial starting balance. This means even if you are up 8% in profit, you can still breach the overall limit if you give back enough — your equity must never drop 10% below the original account size.

What happens if I breach the daily loss limit?

Breaching the daily loss limit on any single day immediately fails the challenge or funded account, regardless of your overall profit. FTMO monitors this in real-time. The daily limit resets at midnight Central European Time (CET). Many traders use a position size calculator to ensure a single losing trade cannot consume the entire daily budget.

How do I calculate the average daily gain needed for the FTMO Challenge?

Divide the profit target percentage by the number of available trading days. For a 10% target over 30 days, you need an average of 0.333% per day. In dollar terms, multiply that daily percentage by your account size ($100K × 0.333% = $333/day). This is a planning benchmark — you do not need to earn it every day, but it tells you the pace required.

Does this calculator work for other prop firms like MyForexFunds or The Funded Trader?

Yes. The calculator is parameterized — you can change the profit target %, daily loss %, and overall loss % to match any prop firm's rules. Use the Funded Trader Calculator for a broker-agnostic version with editable challenge parameters for direct comparison across firms.

What account sizes does FTMO offer?

FTMO offers challenge accounts of $10,000, $25,000, $50,000, $100,000, and $200,000. The percentage-based rules are the same across all sizes; only the dollar amounts differ. A $200K account has a $20,000 profit target and a $10,000 daily loss limit using the standard 10%/5%/10% parameters.

How does the FTMO profit split work after passing?

After passing both phases, FTMO funds traders with an 80% profit split (upgradeable to 90% with the scaling plan). The firm retains 10–20% of net profits. Payouts are processed monthly or on demand (for accounts above $25K). The prop firm bears all trading losses — the trader's only financial exposure is the initial challenge fee.

FTMO Challenge Calculator

The FTMO Challenge Calculator converts the percentage-based rules of the FTMO evaluation into exact dollar figures for any account size. Enter your account size and the challenge parameters to instantly see your profit target, daily loss limit, overall loss limit, and the average daily gain you need to pass within the allowed trading period. Whether you're preparing for the FTMO $10K or $200K challenge, this tool helps you plan your trading approach before you place your first trade.

Account Size

Profit Target

FTMO Phase 1 default: 10%

Max Daily Loss

FTMO default: 5% of initial balance

Max Overall Loss

FTMO default: 10% of initial balance

Trading Days Available

FTMO Phase 1: 30 days, Phase 2: 60 days

Profit Target

$10,000.00

Daily Loss Limit

$5,000.00

Overall Loss Limit

$10,000.00

Avg Daily Gain Needed

$333.33

How to use this calculator

1
Enter your account size
Select the challenge account size you are trading — common options are $10,000, $25,000, $50,000, $100,000, or $200,000.
2
Set the profit target %
FTMO Phase 1 requires a 10% profit target. Phase 2 requires 5%. Enter the figure matching your current phase.
3
Set the max daily loss %
FTMO's daily loss limit is 5% of the initial balance. This is a hard rule — breaching it on any single day fails the challenge.
4
Set the max overall loss %
The overall (trailing) loss limit is 10% of the initial balance. Your equity cannot drop 10% below the starting value at any point.
5
Enter trading days available
FTMO Phase 1 allows 30 calendar days; Phase 2 allows 60 days. The calculator uses this to show the average daily gain required.
6
Review your targets
The results show every limit in exact dollar amounts so you can set alerts and size positions without doing mental arithmetic mid-session.

Formula

Profit Target ($)      = Account Size × (Profit Target % ÷ 100)
Daily Loss Limit ($)   = Account Size × (Max Daily Loss % ÷ 100)
Overall Loss Limit ($) = Account Size × (Max Overall Loss % ÷ 100)
Avg Daily Gain Needed  = Profit Target % ÷ Trading Days (as % per day)
                       = Account Size × (Avg Daily Gain % ÷ 100) in dollars

All three dollar limits are simple percentage conversions of the initial account size — FTMO's rules are based on the starting balance, not the running equity. The required average daily gain divides the total profit target across the available trading days, giving you a benchmark for planning session targets. For example, a $100,000 account with a 10% target over 30 days requires an average of $333/day, or 0.333% per day.

Worked Example — $100,000 FTMO Phase 1

Account size: $100,000 Profit target: 10% Max daily loss: 5% Max overall loss: 10% Trading days: 30 Profit Target = $100,000 × 10% = $10,000 Daily Limit = $100,000 × 5% = $5,000 Overall Limit = $100,000 × 10% = $10,000 Avg Daily Gain = $10,000 ÷ 30 = $333.33/day (0.333%/day) To pass Phase 1 on a $100K account, you need to grow the account by $10,000 without losing more than $5,000 on any single day or $10,000 in total across the entire 30-day challenge period.

Frequently Asked Questions

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