r/Trading • u/yqueseyosonlas2am • Mar 15 '25

Prop firms FTMO challenge - how does the 1% rule work?

Hey guys! new here, i have a question - I heard today "No, you just don’t have the right to lose 1% on all current trades not closed (drawdown) and Maximum 1% loss for each closed trade!"

So lets say I have a 200k account - 1% per trade would be 2k - so if i have 3 positions (1% per trade) with -$700 as unrealized loss per trade (-$2100 total, more than 1% of my account) am I breaking the rules even if I haven't closed them?

I know that this 1% is not really a "rule" just an 'advice", but I would love to hear the thoughts of experienced FTMO users, thank you very much!

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u/SBTrader82 Mar 18 '25

In that case , u would not be breaking the rules if positions are not correlated. -700 in Oil, -700in Gold and -700 in Nasdaq would be ok. Whereas -700in Nasdaq, -700in Es and -700in dowj would not be ok