Funded-account programs like FTMO have simple rules — but breaking one ends the account instantly. Here's what each rule means and how to trade (and copy signals) without tripping them.
Rules vary by firm and program. Always read your specific challenge's terms. This is a general explanation, not financial advice.
The four rules that matter
1. Daily loss limit
The most you can lose in a single trading day, usually measured from the day's starting balance/equity (e.g. 5%). Hit it and you fail — even if you'd recover tomorrow.
How to stay safe: a daily-loss circuit breaker that stops all trading the moment you reach your own limit (set it below the firm's, e.g. 4% if the rule is 5%).
2. Maximum drawdown
The most your account can fall from its starting balance (or a trailing high), e.g. 10%. This is the account-killer.
How to stay safe: a max-drawdown guard that halts trading before the threshold, plus conservative position sizing.
3. Profit target
The gain required to pass (e.g. 8–10%). Time pressure here causes overtrading — the real danger.
How to stay safe: size consistently (% risk), don't chase. Passing slowly beats failing fast.
4. Consistency / behavior rules
Some firms flag martingale, all-in single trades, or copy-trade fingerprints.
How to stay safe: stealth delays so copied fills look natural, sensible sizing, and no doubling down.
A safe setup for copying signals on a prop account
- % risk sizing at 0.5–1% per trade.
- Daily-loss breaker a notch under the firm's limit.
- Max-drawdown guard a notch under the firm's limit.
- Consecutive-loss breaker at 3–4.
- Hidden/virtual SL/TP + stealth delays (prop-firm mode).
- Pre-trade violation predictor to block any trade that would breach a limit.
Set these once and the copier simply refuses trades that would break your rules.
Bottom line
You don't pass a challenge by winning big — you pass by not failing. Automate the limits so a single emotional trade can't end your account.
Protect your challenge free · Prop Firm Mode docs.
Not financial advice. Trading carries risk. Follow your firm's actual rules.