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FTMO Scaling Plan Rules and Targets
A scaling plan is a mechanism used by proprietary trading firms to incrementally increase a trader's account balance based on consistent profitability over a designated time period.
Ordane accounts operate on simulated capital. No live funds are traded and no deposits are accepted.
The industry uses scaling plans to reward consistent performance over time. When a trader demonstrates strict risk management and steady returns, the firm increases the nominal size of the account. This structure aligns the incentives of the trader and the firm by allocating more capital to strategies that survive multiple market cycles without breaching maximum drawdown limits.
The mechanism of increasing a balance by a fixed percentage serves a dual purpose. For the trader, it provides a pathway to manage larger nominal positions without paying for a new, larger evaluation. For the firm, it acts as a mechanical filter. Capital is only extended to operators who have proven their statistical edge across a broad sample size of market conditions.
Traders often compare firm structures to understand how their trading volume might grow over a multi-year horizon. Some firms require traders to purchase a completely separate evaluation process to access more capital. Others build growth into the existing account through a defined scaling process based on time and performance gates.
Ordane sells one product, the Ordane Instant Account: direct access, no evaluation phase and no challenge, on simulated capital. By contrast, traditional evaluation firms rely on a phased approach where the scaling plan acts as the final, ongoing stage of long-term account development after the initial challenge phases are complete.
Scaling a balance alters the absolute values of the risk parameters in the trader's favor. A percentage-based maximum drawdown on a larger balance provides a wider nominal dollar buffer for price fluctuations. The percentage limits remain identical, but the mathematical reality of a larger base number changes the daily operation of the trading strategy.
To illustrate the difference in absolute risk parameters, we can compare the limits of a standard initial balance against a scaled balance across the primary risk metrics.
| Metric | Initial Account Structure | Scaled Account Structure |
|---|---|---|
| Account Balance | Baseline nominal value | Baseline plus 25 percent |
| Maximum Drawdown Limit | Percentage of baseline | Percentage of scaled balance |
| Nominal Drawdown Buffer | Standard absolute dollars | Increased absolute dollars |
| Capital Increment Frequency | Not applicable | Every four months |
The structural design of a scaling plan dictates that the trader must survive a minimum temporal threshold before any increase occurs. Four months is one third of a calendar year. Surviving for this duration requires navigating multiple macroeconomic data releases, central bank interest rate decisions, and unpredictable shifts in market volatility.
The requirement to trade through different market environments ensures that the strategy relies on a verifiable statistical edge rather than a temporary directional bias. Firms deploy scaling plans specifically to filter out strategies that rely on luck during a single favorable month. A strategy that generates heavy returns in trending markets but collapses during consolidation will mathematically fail to survive a four-month measurement period.
By tying capital increases to a timeline, the firm protects itself from over-allocating resources to high-variance operators. The scaling plan is not a promotional tool; it is a risk management firewall designed to separate consistent operators from those who merely survived a short-term evaluation phase.
Do You Get Paid More After Scaling?
Upon successfully scaling the account, the profit split is automatically upgraded to a 90/10 ratio in favor of the trader. This structural change means the trader retains a larger portion of generated profits in all subsequent payout cycles once the new tier is reached.
The profit split is the primary financial mechanism connecting the trader to the simulated capital. Most retail prop firms start the trader on a lower tier, typically 70 percent or 80 percent, and use the 90 percent tier as an incentive for longevity and strict adherence to the rulebook.
A higher split on a larger balance creates a compounding effect on nominal payout values. The trader generates returns on a base that is 25 percent larger, and retains a percentage of those returns that is incrementally higher than the baseline agreement. The combined effect of more capital and a better split alters the economics of the trading operation significantly.
Declared inputs for this check: a $100,000 initial balance, a 25 percent capital increment, and a 10 percent profit target. Worked arithmetic: $100,000 plus $25,000 equals $125,000 scaled balance.
| Scaling Phase | Capital Base | Capital Increment | Final Scaled Balance |
|---|---|---|---|
| Initial Cycle | $100,000 | $0 | $100,000 |
| First Scale | $100,000 | $25,000 | $125,000 |
| Second Scale | $125,000 | $31,250 | $156,250 |
| Third Scale | $156,250 | $39,062 | $195,312 |
Traders evaluating firm rules must calculate how these increments affect their specific strategy execution. A mechanical system with a fixed risk per trade of 1 percent will risk $1,000 on the initial balance. After the first scale, the exact same 1 percent risk model will risk $1,250 per trade. The strategy logic remains identical, but the nominal throughput increases.
The absolute profit generated by the same percentage return increases proportionally. If a system averages a 4 percent return per month, the absolute profit grows with each scaling event. This creates a clear mathematical incentive to focus on survival over aggressive yield generation.
- A 4 percent return on $100,000 generates $4,000 in gross profit.
- At an 80 percent standard split, the trader payout is $3,200.
- A 4 percent return on $125,000 generates $5,000 in gross profit.
- At the upgraded 90 percent split, the trader payout is $4,500.
The mechanics of the profit split upgrade require careful attention to the terms of service. The upgrade applies only after the qualification period is complete and the firm has formally processed the scale-up request.
Profits generated during the four-month qualification phase remain subject to the standard baseline split. The firm upgrades the ratio only for the trading cycles that occur after the new balance is provisioned on the trading server.
This delay in the ratio upgrade serves as an extended evaluation of the trader's discipline. The firm requires the trader to prove consistency under the standard terms before granting access to the premium terms.
Different firms approach the split upgrade through different mechanisms. Ordane's profit split starts at 60 percent and rises 5 percentage points with every completed withdrawal, reaching 100 percent from the ninth withdrawal onward. The split ladder is in writing and never resets. This provides a contrast in how the industry structures loyalty incentives, with some tying it to balance scaling and others tying it directly to payout frequency.
What Are the Hidden Rules to Qualify?
To qualify for a capital increase, the trader must generate a net profit of at least 10 percent over four consecutive monthly cycles. Additionally, the trader must have processed at least two payouts within the four-month qualification period to be eligible for the scale-up.
The qualification criteria are absolute and mechanical. Firms do not grant scale-ups based on discretion, tenure, or trading volume alone. The rules act as strict filters designed to measure two specific traits: profitability and behavioral consistency.
A trader might generate a massive return in month one and suffer flat or negative returns in the subsequent three months. While the average over the period might mathematically meet the requirement, failing to process the required payouts will void the scaling eligibility. The hidden rules exist to ensure the trader operates a sustainable system.
The 10 Percent Net Profit Target
The core performance metric is the requirement to generate at least 10 percent of net profit in 4 consecutive monthly cycles. This target is an aggregate figure, meaning the sum of the net profit over the four months must equal or exceed 10 percent of the initial balance.
An aggregate target of 10 percent over four months equates to an average monthly return of exactly 2.5 percent. This figure is significant because it defines the baseline risk profile required to succeed over the long term.
Many traders fail scaling plans because they misunderstand the math. They attempt to generate 10 percent every single month, taking excessive risk that eventually triggers a maximum drawdown violation. The rule does not require heroic monthly returns; it requires steady, moderate compounding.
To achieve a 2.5 percent average monthly return, a trader must employ strict position sizing and accept that flat months are part of the business model. If the trading strategy risks 0.5 percent per trade, the trader needs a net gain of five risk units per month to stay on pace.
- Month 1: 3 percent net profit.
- Month 2: 1 percent net profit.
- Month 3: 4 percent net profit.
- Month 4: 2 percent net profit.
- Total Aggregate: 10 percent net profit over four months.
This mathematical reality highlights why firms use a four-month window for measurement. A four-month period smooths out the variance inherent in all mechanical trading systems.
Every strategy experiences periods of drawdown and periods of outperformance. By requiring the 10 percent target to be measured across a long horizon, the firm ensures the trader is not relying on a single volatile market event, such as a surprise interest rate cut, to force the scale-up. The trader must demonstrate edge across different daily structures and volatility regimes.
The net profit calculation includes all trading costs. The trader must clear the 10 percent hurdle after spreads, commissions, and overnight financing charges are deducted from the gross trading revenue. This forces the trader to factor operational costs into their risk models, exactly as they would in a professional trading environment.
If a trader finishes the four-month period with 9.8 percent net profit, the scaling criteria are not met. The rigidity of the rule is intentional. It removes discretion from the review process and places the burden of precision entirely on the trader's execution.
The Minimum Payout Requirement
The secondary criterion mandates that the trader has to process at least 2 payouts within the 4 months period. This rule forces the trader to actually realize gains and withdraw them from the simulated environment, rather than letting equity float indefinitely.
A common behavioral error among retail traders is treating simulated equity as a high score. They might float a large open profit for weeks without closing the position or formally requesting a payout.
The minimum payout requirement prevents traders from hoarding equity to insulate themselves from daily loss limits. The firm wants to see the trader successfully navigate the psychological cycle of booking profits, resetting the balance to the baseline, and building equity again from scratch.
Processing a payout mechanically resets the account buffer. When a trader withdraws profits, the account balance returns to the starting value. The trader no longer has the cushion of accumulated profits to absorb future losses.
Firms enforce this requirement because the ability to rebuild from a flat baseline is the defining characteristic of professional risk management. A lucky trader can run up a balance once. Only a disciplined trader can run it up, extract the capital, and do it again without changing their risk parameters.
By demanding two separate payouts, the firm verifies that the trader has successfully executed this rebuilding cycle at least twice within the four-month window. This creates a provable track record of discipline.
The interaction between the 10 percent target and the two-payout requirement creates a narrow path for success. The trader must be aggressive enough to hit the aggregate profit target, but defensive enough to secure the gains through formal payout requests, all while managing the psychological reset of starting the next cycle at the initial balance.
Understanding these mechanics is critical for any trader evaluating a scaling plan. The capital increment is not a gift for longevity; it is a mechanical allocation awarded only to those who master the strict mathematical rules of the firm.
Frequently Asked Questions
How much does the FTMO scaling plan increase the balance?
The scaling plan increases the initial account balance by 25 percent every four months.
What is the profit target required to scale an FTMO account?
Traders must generate a net profit of at least 10 percent over four consecutive monthly cycles.
Do traders need to request payouts to qualify for scaling?
Yes, the trader must process at least two payouts within the four-month qualification period to be eligible for the scale-up.
Does scaling an FTMO account change the profit split?
Upon successfully scaling the account, the profit split is automatically upgraded to a 90/10 ratio in favor of the trader.
To skip evaluation phases entirely and trade a simulated account directly, review the Ordane Instant Account sizes.
Sources
- FTMO, on the Scaling Plan: account increases by 25 percent every 4 months. ftmo.com Retrieved 2026-09-05.
- FTMO, on the Scaling Plan: traders must generate at least 10 percent net profit in 4 consecutive monthly cycles. ftmo.com Retrieved 2026-09-05.
- FTMO FAQ, on the Scaling Plan: traders must process at least 2 payouts within the 4 month period. ftmo.com Retrieved 2026-09-05.
- FTMO, on the Scaling Plan: the Profit Split will be automatically upgraded to 90/10. ftmo.com Retrieved 2026-09-05.
This article is for information only and is not investment, financial, or tax advice.
Ordane accounts operate on simulated capital. No live funds are traded and no deposits are accepted. Payouts depend on simulated performance under Rulebook v1.0; no level of performance is typical or assured.