TPThe Trading Playbook

Updated 2026-03-08

FTMO EA & Bot Policy Rule Explained

FTMO
Quick Answer

FTMO allows EAs and bots with conditions — no HFT, latency arbitrage, or tick scalping strategies.

All automated trading strategies are permitted during both Challenge and Funded phases, but must avoid high-frequency trading, latency arbitrage, and tick scalping techniques. Violating these conditions results in immediate account termination without refund or payout eligibility.

Key Rule Details

EAs Allowed
Yes
Restrictions
Allowed with conditions — no HFT, no latency arbit
HFT
Prohibited at all firms
Arbitrage
Prohibited at all firms
Copy Trading
Not allowed

Calculation Example

Account Size: $100,000EA & Bot Policy: Allowed with conditions
Account Size$100,000
EA & Bot Policy LimitAllowed with conditions
Scenario: Closed P&LEA places 10 trades per day
Scenario: Floating P&LPermitted (no HFT/arbitrage)
Total ExposureNormal operation continues
Remaining BufferMonitor for prohibited strategies
Limit used:0%

Common Mistakes

Using HFT strategies
Traders deploy EAs with high-frequency elements, believing FTMO won't detect automated speed. FTMO's systems flag accounts executing dozens of trades per minute or holding positions for seconds. A scalping EA making 50+ trades daily with average hold times under 30 seconds will trigger immediate termination on any account size.
Latency arbitrage bots
Traders use EAs exploiting price feed delays between brokers or news releases. FTMO specifically prohibits strategies that capitalize on connection speed advantages or delayed price quotes. Even profitable latency arbitrage generating $500 profit on a $50,000 account results in instant disqualification without warning.
Tick scalping algorithms
Traders implement EAs targeting 1-2 pip movements with rapid entry/exit cycles. FTMO considers this tick scalping even if profitable and compliant with other rules. An EA making 20 trades daily averaging 1.5 pip targets violates policy regardless of meeting the 10% profit target in Phase 1.
Ignoring strategy classification
Traders assume any profitable EA is acceptable without reviewing their strategy's mechanics. FTMO evaluates trading patterns, not just profits or rule compliance. A seemingly normal swing trading bot that occasionally executes rapid-fire sequences during news events can trigger policy violations and account termination.

Protection Strategies

Review EA strategy classification thoroughly
Analyze your EA's trading frequency, holding periods, and execution patterns before deployment. Document that your strategy doesn't involve HFT elements, latency advantages, or tick scalping mechanics. Contact FTMO support with strategy details if uncertain about compliance before risking challenge fees.
Implement minimum hold time controls
Configure your EA with minimum position holding periods of at least 5-10 minutes to avoid tick scalping classification. Set maximum daily trade limits under 10-15 trades to demonstrate swing or day trading approach rather than high-frequency patterns that trigger policy violations.
Monitor execution speed and frequency
Set up alerts tracking your EA's trade frequency and average holding times daily. If approaching patterns resembling HFT (15+ trades daily with sub-minute holds), manually pause the EA and adjust parameters. Regular monitoring prevents accidental policy violations during volatile market conditions.
Avoid news-based rapid execution
Disable EA during major news releases when rapid execution might appear as latency arbitrage. FTMO restricts news trading and high-speed execution around announcements can be misclassified as prohibited strategies. Pause automated systems 15 minutes before and after high-impact economic releases.

Related Rules

Maximum Daily Loss
5%
Maximum Total Loss
10%
Profit Target (Phase 1)
10%
Profit Target (Phase 2)
5%

FTMO Comparisons

/Compare/Fundednext vs Ftmo/Compare/Ftmo vs Fundingpips/Compare/Ftmo vs The Funded Trader/Compare/Ftmo vs The5ers

Frequently Asked Questions

Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on FTMO's official website before purchasing a challenge. Updated 2026-03-08.