FTMO $50,000 Challenge — Position Size Calculator

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Firm Rules Summary

Risk Guide

On FTMO's $50k account, your daily loss limit is exactly $2,500 (5%). This means at 1% risk per trade, you can take 5 consecutive losing trades before hitting the daily limit (5 × $500 = $2,500). At 2% risk, you're limited to just 2 losing trades before breach (2 × $1,000 = $2,000, leaving only $500 buffer). The most dangerous scenario is taking large positions early in the trading day - a single 3% risk trade ($1,500) followed by another 2% loss ($1,000) puts you at the daily limit immediately. For position sizing, calculate your dollar risk first, then work backward. On EURUSD with 30-pip stops: 1% risk ($500) ÷ $3 per pip = 1.67 lots. On GBPJPY with 50-pip stops: 1% risk ($500) ÷ $6.5 per pip = 0.77 lots. Gold with $20 stops: 1% risk ($500) ÷ $20 = 0.25 lots. The maximum drawdown of $5,000 (10%) is your ultimate red line - this tracks your account's lowest point relative to the starting balance or highest point reached. During Phase 1, you need $5,000 profit (10%) with minimum 4 trading days. Phase 2 requires only $2,500 profit (5%) but the same risk rules apply. Many traders make the mistake of increasing position sizes after passing Phase 1, but your daily loss limit remains $2,500 throughout. The key difference in the funded phase is that drawdown calculations reset monthly, but daily loss limits never change. Smart traders stick to 0.5-1% risk per trade, allowing 5-10 losing trades before approaching daily limits. This conservative approach maximizes your chances of hitting profit targets while staying well within FTMO's risk parameters across all phases.

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