FTMO Trading Journal: How to Track the FTMO Challenge and Drawdown Rules
Rules summarized from FTMO's published trading objectives as of November 2026. Prop firms change rules often, so always confirm on ftmo.com before you start a challenge. Clarity Tracking is not affiliated with FTMO.
FTMO is one of the best-known prop firms in forex and CFD trading. Most traders who fail an FTMO Challenge do not fail because their strategy has no edge. They fail because one or two bad days break the daily or maximum loss rule. A trading journal that tracks those limits in real time is the simplest way to avoid that.
FTMO rules at a glance
| Rule | 2-Step (Challenge + Verification) | 1-Step |
|---|---|---|
| Profit target | 10%, then 5% | 10% |
| Maximum daily loss | 5% | 3% |
| Maximum loss | 10%, static from initial balance | 10%, end-of-day trailing |
| Minimum trading days | 4 per phase | See FTMO's current rules |
Two details catch many traders out:
- Floating losses count. FTMO's daily and maximum loss calculations include open positions, not just closed trades. A trade that is deep in the red counts against you before you close it.
- The daily reset is at midnight Prague time. Your daily loss budget is measured from the start of FTMO's trading day, not your local midnight.
What your FTMO journal should track
- Daily loss used vs. the 5% (or 3%) limit, including open trades
- Distance to the 10% maximum loss floor
- Progress toward the profit target
- Trading days completed
- Risk per trade as a percentage of the account
- Setup, session and rule compliance on every trade
A worked example
On a $100,000 2-Step Challenge, the maximum daily loss is $5,000 and the maximum loss floor is $90,000. If you risk 1% per trade, five losses in a row costs about $5,000, enough to end the account in a single day. At 0.5% risk, the same streak costs about $2,500, leaving plenty of room. Run your own numbers in the prop firm challenge calculator and the risk of ruin calculator.
How to journal an FTMO Challenge with Clarity Tracking
- Connect your FTMO account. FTMO offers MT4, MT5 and cTrader (plus DXtrade, which Clarity Tracking does not sync), with availability depending on your region.
- Set your challenge's daily and maximum loss limits so the dashboard shows how much room you have left.
- Tag every trade with its setup and session, and mark whether it followed your plan.
- Review the calendar each day. Any day that used more than half of the daily limit deserves a written note.
Habits that pass FTMO Challenges
- Keep risk per trade at 0.5% to 1% and size every trade with the position size calculator.
- Set a personal daily stop well inside FTMO's limit, for example 2.5% on the 2-Step.
- Avoid holding large floating losses into the daily reset.
- Trade only the setups and sessions your journal shows are profitable.
FAQ
Does FTMO's daily loss include open trades?
Yes. FTMO counts floating results of open positions as well as closed trades toward both the daily and maximum loss limits.
Is the FTMO 1-Step easier than the 2-Step?
It has one phase, but a tighter 3% daily loss limit and a trailing maximum loss, so it suits traders with small daily swings. Compare both against your own journal data before choosing.
Related: prop firm trading journal guide, how to pass prop firm challenges.
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