Why FTMO Monitors Certain Patterns in Trading Behavior

Do you have questions about patterns in trading behavior and their impact on account suspensions or reward processing? FTMO is committed to transparency and education, and in this article, we summarize why FTMO monitors certain trading behavioral patterns.

There Is No Fixed Limit for Position Size

Every trader has a different trading style and a unique approach to risk. FTMO therefore does not set universal limits on how much of the account balance can be risked on a single trade, nor on the reward-to-risk ratio (RRR). The key condition when trading with FTMO remains compliance with the Trading Objectives: the Maximum Daily Loss and Maximum Loss.

FTMO recommends risking 1–1.5% per trade. However, this is only a best practice and not a restriction. Occasional larger positions in terms of margin or risk can be part of a healthy trading approach, provided they are based on a well-designed, functional strategy.

Why FTMO Monitors Trading Behavior

FTMO provides traders with an environment that simulates real market conditions. Once traders successfully complete the entire Evaluation Process and then pass identity verification and consent to the Signal Provider Agreement, they gain access to an FTMO Rewards Account and can earn performance-based monetary rewards. The goal is to offer traders a simulated trading environment in which they can trade with greater capital without risking their own funds.

Our conditions are designed not only to help traders build habits applicable to real market trading but also to protect our services from manipulative or abusive behavior. It is therefore essential to ensure that trading behavior remains sustainable and replicable in the long term.

Examples of inappropriate behavior include:

• Gambling: trading without a plan, “all-in” strategies (more details HERE)

• Organized coordination: traders cooperating in a malicious way to gain an unfair advantage

• Behavior not reflecting real market conditions: strategies that would not be viable or replicable in real-market environments

The purpose of monitoring is not to restrict trading freedom, but to protect honest traders and the integrity of the educational program.

When a Reward May Be Withheld

A reward may be temporarily or permanently withheld only if:

• There is suspicion of rule violations

• The behavior indicates manipulation or coordinated action

• The strategy relies on exploiting unrealistic conditions

FTMO openly states that the majority of reward withdrawals are processed smoothly, and only a very small number require internal review. This is not a “penalty” for trading larger positions, but a standard measure to maintain fair trading practices.

When inappropriate behavior is identified, traders are first notified and given the opportunity to adjust their approach. If these warnings are ignored, their account may be terminated and the reward will not be paid. In cases of severe breaches of the Terms and Conditions, the account may be terminated immediately.

FTMO Supports Honest Traders

To help traders stay on their path toward professional trading, we provide:

• Account MetriX showing the real-time status of the account and Trading Objectives

• FTMO Trading Journal and PnL Calendar for trade analysis and feedback

• Range of other tools that help manage risk and test strategies

FTMO’s services are intended for serious traders, and our goal is to support the development of trading skills and help traders identify which strategies and behaviors could be deployed even in real market conditions.

Key Takeaways

• FTMO does not set general limits on margin used or risk taken.

• We monitor only behavior that conflicts with professionalism and long-term sustainability.

• Gambling and manipulative strategies do not lead to healthy trading habits and will not be supported.

• Traders are first warned about inappropriate behavior; if they continue despite the warning, their account may be terminated and the reward may not be paid. In severe cases, the account may be terminated immediately.

• We offer a wide range of trading tools and educational content to support your development throughout your trading journey.

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All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. FTMO only provides services of simulated trading and educational tools for traders. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local laws or regulations. FTMO companies do not act as a broker and do not accept any deposits.