The investor has an assurance that the trader’s account cannot decline below 90% (80% in case of Aggressive version) of its value under any circumstance. It is a buffer that should keep the trader in the game even if there were some initial losses. 10% of the initial account balance gives trader enough space to prove that his/her account is suitable for the investment. The limit is inclusive of commissions and swaps. The logic of the calculation is the same as with the Maximum Daily Loss the only difference is that it’s not limited to one day but the entire duration of the testing period. Again, this is a sum of both closed and open positions (account equity, not balance). For the FTMO Challenge with a balance of $100,000, it means that the account lowest possible equity can be $90,000. The equity of the trading account must not, at any moment during the account duration, decline below 90% of the initial account balance.
This rule can also be called “account stop-loss”. You can get more insight into why this rule is in place in this article. That’s also why the Maximum Daily Loss limit includes your possible floating losses. Both the trader and investor benefit from this rule as the account value will not drop below the limit. The size of the Maximum Daily Loss gives trader enough space for trading and it guarantees a clearly defined daily risk to the investor. This is because your previous day profit doesn’t count to a new day and the open loss of $13,000 exceeds the max daily permitted loss of $10,000. However, if you hold this position with an open loss of $13,000 after midnight, the daily loss limit will be violated. On this day, the maximum daily loss is not violated. On the same day, you have an open position with a currently floating loss of $13,000. In one moment, your daily loss was -$11,700 on the equity, which is more than the permitted loss of $10,000.īe careful as the Maximum Daily Loss resets at midnight CE(S)T! Let’s say that one day you had a profit of $4,000. For example, if in one day, you have closed trades with a loss of $6,000 and then you open a new trade that goes into a floating loss of some -$5,700 but ends up positive in the end, unfortunately, it is already too late. Once again, be reminded that your Maximum Daily Loss counts your open trades as well. Vice versa, if you profit $5,000 in one day, then you can afford to lose $15,000, but not more than that. It must also not go -$2,000 in your open floating losses. If you happen to lose $8,000 in your closed trades, your account must not decline more than $2,000 this day. The counting formula:Ĭurrent daily loss = results of closed positions of this day + result of open positions.įor example, in the case of the FTMO Challenge with the initial account balance of $200,000, the Max Daily Loss limit is $10,000. The rule says that at any moment of the day, the result of all closed positions in sum with the currently open floating P/Ls (profits/losses) must not hit the determined daily loss limit. According to our rules, this is set as 5% (10% in case of an Aggressive version) from the initial account balance. This rule can also be called “trader’s daily stop-loss”. If a trade is held over multiple days, only the day when the trade was executed is considered to be the trading day.
A trading day is defined as a day when at least one trade is executed. At least one position must be opened in each of these days. To meet this objective, you must trade for at least 10 days during the current duration cycle.
#MAC 10 9MM NETWORTH VERIFICATION#
We will advance you to the Verification as soon as possible. For example, if you pass all the Trading Objectives of the FTMO Challenge in just 11 days, no need to wait another 19 days. If you manage to pass the Trading Objectives sooner, you do not need to wait for the remaining duration days. The FTMO Challenge duration is 30 calendar days the Verification duration is 60 calendar days.
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