No, FTMO uses static drawdown, not trailing drawdown. Your drawdown floor is set once when the account opens at $9,000 on the $10,000 account. It never moves up, even when you profit.
This means profits create genuine safety buffer. If you grow the $10,000 account to $10,500, your floor stays at $9,000 -- giving you $1,500 total room before breach.
Static drawdown is generally considered more forgiving than trailing drawdown because winning streaks give you real cushion instead of raising your breach level.
Use the Vigil trailing drawdown simulator to see exactly how FTMO's drawdown floor behaves with your actual trade history.
Rule Evidence
- -Max drawdown on smallest account: 9000 breach level
- -Daily loss limit: 500
- -Largest account drawdown room: 20000
- -Rule model: static
How To Use This Answer
Enough For A Quick Decision
Use this page if you only need the basic failure condition: what breaches the account and what drawdown model FTMO uses.
When To Open The Deeper Page
Open the account-size rules if you need exact dollar limits, breach levels, or the funded-phase version of the rule.
Open the main rule page, then choose the account size you actually plan to buy.
Drawdown Snapshot By Phase
Phase 1
static drawdown, 5% daily cap, 10% max drawdown.
Phase 2
static drawdown, 5% daily cap, 10% max drawdown.
Funded
static drawdown, 5% daily cap, 10% max drawdown.
Risk Interpretation
Most traders lose prop challenges because they misread the drawdown rule, not because they misunderstand the headline fee or payout split. The important number is the breach level and how it changes after profitable sessions.
On FTMO, the smallest listed account gives you 1,000 of total drawdown room. That number should drive your position sizing, number of attempts per day, and the amount of variance your strategy can realistically survive.
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