FTMO rules in 60 seconds

FTMO is the most searched prop firm for a reason: its rules are simple on paper and brutal in practice. The figures FTMO has published for its standard challenge are approximately:

  • Maximum daily loss: ~5% of the initial balance, measured against the start-of-day equity.
  • Maximum overall loss: ~10% of the initial balance.
  • Minimum trading days per phase and a profit target in the evaluation phases.

These are typical published numbers, not a contract: limits vary by account type and change over time, so always read the current rulebook on ftmo.com before you automate anything. A single unmanaged losing session is enough to kill an evaluation - which is exactly why automation needs risk controls, not just entries.

Are EAs and automation allowed on FTMO?

Yes, with conditions. FTMO allows EAs and signal-driven execution as long as the strategy is your own. What is banned is exploiting the demo environment (latency arbitrage, tick-data abuse, trades that could not fill live) and mass-used third-party EAs that make many clients open identical trades. Practical rule: automate your own TradingView signals, not a shared black-box bot, and you stay on the safe side of the rulebook. Again: ftmo.com has the final word.

Connecting TradingView alerts to your FTMO MT5 login

SignalForge executes your TradingView webhook alerts inside the MT5 terminal logged into your FTMO account - market and pending orders, closes, SL/TP modification. Setup takes about ten minutes:

  1. Create your SignalForge account (14-day free trial, no card) and copy your webhook URL from the dashboard.
  2. Register your FTMO account with the exact login and server string your terminal shows (for example FTMO-Server or FTMO-Demo).
  3. Install the SignalForge EA on that terminal and drag it onto one chart.
  4. Create the TradingView alert with a JSON message like:
{
  "symbol": "XAUUSD",
  "action": "buy",
  "risk_pct": 0.5,
  "sl": 30,
  "tp": 60
}
  1. Fire a test alert on an FTMO free trial or evaluation account and confirm the order appears in MT5.

For the exact server strings and symbol names verified on FTMO (including US100.cash and GER40), see our FTMO broker setup guide - it covers the connection strings; this page covers the rules and risk side.

Risk settings that fit the FTMO drawdown limits

The daily loss limit is what actually fails traders, so configure around it:

  • Size by risk, not by lots. Use risk-based position sizing (a percentage of balance per trade) instead of fixed lots, so position size adapts as equity moves. 0.5-1% risk per trade is a common starting point for a 5% daily cap.
  • Cap your worst day. If you risk 1% per trade with a max of three concurrent signals, a full stop-out day costs ~3% - still inside the daily limit. Work backwards from your own limit like this.
  • Always attach a stop. Send sl in the alert or set an SL override in the dashboard. A naked signal on a prop account is an evaluation waiting to fail.
  • Use break-even and trailing to protect green trades instead of letting winners round-trip into the daily loss.
  • Multi-TP lets you scale out at several targets, which smooths equity without extra risk per idea.
  • Trading schedule: restrict execution hours per account so alerts cannot fire during rollover or news spikes you would normally skip.

The SignalForge prop firm bridge page goes deeper on drawdown-oriented setup, and pricing starts at $4.99/mo - cheap insurance next to a challenge fee. Related reading: FTMO rules for EA trading and passing a prop firm challenge with an EA.

FAQ

  1. Does FTMO allow EAs and automated trading? Yes, as long as the EA trades your own strategy and does not exploit the demo environment. Mass-used third-party EAs can trigger an identical-strategy review - keep your automation personal and check ftmo.com.
  2. How do I connect TradingView alerts to my FTMO MT5 account? Register your FTMO login and server in the SignalForge dashboard, install the EA on that terminal, and paste your webhook URL plus a JSON message into a TradingView alert. Every alert then executes automatically.
  3. What are the FTMO daily loss and max loss limits? FTMO has published ~5% maximum daily loss and ~10% maximum overall loss on its standard challenge. Figures change and vary per account type - always verify on ftmo.com.
  4. What risk settings should I use? Risk a small fixed fraction per trade (0.5-1% is common), always send a stop, and keep your worst planned day well under the daily limit. Risk-based sizing, break-even, trailing and a per-account schedule all help.
  5. Can I run my FTMO account on a VPS? Yes - the EA runs on your own PC or on a hosted MT5 terminal like SFCloud, so alerts keep executing while your computer is off. Setup inside the terminal is identical.

Related: FTMO rules for EA trading, the FTMO broker setup guide and the rest of our prop firm guides.