Prop Firm Guide

FTMO EA Rules, Settings & Algo Studio Compatibility

The most established prop firm for retail forex traders — two-step Challenge with explicit EA permission.

Founded: 2015
Based in: Prague, CZ
EA policy: EAs allowed (with restrictions)
Payout split: 80/20 (up to 90/10 with Scaling Plan)

About FTMO

FTMO is the veteran of the retail prop firm space, having funded tens of thousands of traders since 2015. Their two-step Challenge → Verification → Funded pipeline is the model that most competitors imitate. For EA traders, FTMO is a safe default choice because the rules are clearly documented, the platform supports MetaTrader 5, and Expert Advisors are explicitly permitted (with documented restrictions).

The firm has tightened rules over the years as arbitrage strategies proliferated, so check the latest Terms & Conditions on ftmo.com before applying. In particular, the consistency rule and news-trading restrictions have seen multiple revisions.

Challenge programs

FTMO Challenge

Two-step

Daily loss limit: 5%
Max drawdown: 10%
Phase 1 target: 10%
Phase 2 target: 5%
Account sizes: $10k, $25k, $50k, $100k, $200k

EA restrictions to be aware of

•No high-frequency scalping (holding positions for very short durations)
•No copy trading from external signal sources
•No latency arbitrage or price-feed exploitation
•News trading may be restricted during high-impact events — check current T&Cs

Always confirm the current restriction list on ftmo.com.

Position holding

Overnight

Allowed

Weekend

Allowed

Algo Studio compatibility

9/10

Excellent fit. FTMO's clearly-defined drawdown rules align with Algo Studio's health scoring and auto-halt functionality.

Fits well

✓Drift detection catches EA degradation before daily loss limit is hit
✓Auto-halt prevents runaway losses on FTMO's strict daily-loss rule
✓Verified track record makes Scaling Plan applications straightforward

Caveats

!High-frequency scalpers should check current FTMO HFT policy
!Baseline backtest must reflect realistic spread/commission on FTMO's broker

Recommended Algo Studio configuration for FTMO

Set Algo Studio's auto-halt threshold tighter than FTMO's 5% daily loss limit — you need headroom for the governance action to land
Use FTMO's allowed broker's spread/commission profile when uploading your backtest baseline, not a retail MT5 default
Enable Telegram alerts for drift detection AND auto-halt — redundancy matters on Challenge accounts

Frequently asked questions

Are EAs allowed on FTMO Challenge accounts?

Yes, Expert Advisors are explicitly allowed on FTMO Challenge and Verification accounts. There are restrictions on high-frequency scalping, copy trading from external signal services, and latency arbitrage. Check the current T&Cs on ftmo.com before submitting.

What happens to my EA if I breach FTMO's daily loss limit?

The account is immediately terminated. This is why the combination of Algo Studio's drift detection + auto-halt is especially valuable for FTMO accounts — the auto-halt triggers before you reach the daily loss limit, giving you a chance to investigate instead of blowing the account.

Can I run the same EA on multiple FTMO accounts?

Technically yes, but FTMO's rules prohibit running identical strategies across multiple accounts to amplify payouts. They detect this. Monitor each account independently in Algo Studio.

Does FTMO allow weekend position holding?

As of last verification, yes. Overnight and weekend holding are permitted on FTMO Challenge and funded accounts. Always check current rules before relying on this.

Test your EA against FTMO's rules

Upload your backtest and run Monte Carlo analysis against FTMO's drawdown limits. See the survival probability before you risk the evaluation fee.

Run free evaluation Drift detection

Last verified: 2026-04-13 · Always check FTMO's official rules before applying.