What is the Daily Drawdown?

The Daily Drawdown, shown in your dashboard as Daily Loss Limit, is the maximum you can lose in one trading day. On Ftytrade it is a soft limit: reaching it does not close your account.

Daily Loss Limit by program

• Challenge Rapid: no daily limit (only the Max Drawdown applies)
• Challenge Steady: 1.5% (soft)
• Funded account (FTY-LIVE): 1.5% (soft)
• Fty Direct: 2% (soft)

How it works

• The limit is a percentage of the account size. On a $100K account, 1.5% is $1,500.
• It is measured from your balance at the start of the trading session (5:00 PM ET).
• If your loss for the day reaches the limit, your open positions are closed and trading is paused for the rest of that session only.
• The next session you can trade again. The account stays open and your progress is kept.

Why “soft”

A soft limit protects your account from one bad day without ending your challenge. The only rule that closes an account is the Max Drawdown, checked at the end of the day.

Example on a $100K Challenge Steady

The session starts with a balance of $100,000, so the daily limit is $1,500. During the day your balance falls to $98,500: positions are closed and trading is paused. The next session, trading reopens. Your Max Drawdown level is unchanged unless your end-of-day balance made a new high.

Where to see it

The Daily Loss card in your dashboard shows how much of today’s limit you have used, with a colour bar that turns orange and red as you get closer.The Daily Drawdown, shown in your dashboard as Daily Loss Limit, is the maximum you can lose in one trading day. On Ftytrade it is a soft limit: reaching it does not close your account.

Daily Loss Limit by program

• Challenge Rapid: no daily limit (only the Max Drawdown applies)
• Challenge Steady: 1.5% (soft)
• Funded account (FTY-LIVE): 1.5% (soft)
• Fty Direct: 2% (soft)

How it works

• The limit is a percentage of the account size. On a $100K account, 1.5% is $1,500.
• It is measured from your balance at the start of the trading session (5:00 PM ET).
• If your loss for the day reaches the limit, your open positions are closed and trading is paused for the rest of that session only.
• The next session you can trade again. The account stays open and your progress is kept.

Why “soft”

A soft limit protects your account from one bad day without ending your challenge. The only rule that closes an account is the Max Drawdown, checked at the end of the day.

Example on a $100K Challenge Steady

The session starts with a balance of $100,000, so the daily limit is $1,500. During the day your balance falls to $98,500: positions are closed and trading is paused. The next session, trading reopens. Your Max Drawdown level is unchanged unless your end-of-day balance made a new high.

Where to see it

The Daily Loss card in your dashboard shows how much of today’s limit you have used, with a colour bar that turns orange and red as you get closer.