Profit Target
The minimum profit percentage a trader must earn to pass each phase of a prop firm challenge before moving to the next stage or receiving a funded account.
What is a Profit Target?
A profit target is the minimum return you must hit to pass a phase. Most prop firm challenges have two phases, each with their own target.
Typical targets
| Phase | Common Target | |---|---| | Phase 1 | 8–10% | | Phase 2 | 4–5% | | Funded | None (just don't lose) |
Key considerations
- Time limit: Some firms impose a maximum number of calendar days to hit the target. Others are unlimited.
- Minimum trading days: You must trade at least N days regardless of how fast you hit the target.
- Combined with drawdown: You must hit the target while staying within drawdown limits — both rules apply simultaneously.
Example calculation
$100,000 account with 8% Phase 1 target:
- You need to reach $108,000 balance
- While never dropping below the daily drawdown or max drawdown floor
How Firms Apply This Rule
FTMO: 10% Phase 1, 5% Phase 2. FundedNext: 8% Phase 1, 5% Phase 2. Funding Pips: 8% Phase 1, 5% Phase 2.
Related Terms
Consistency Rule
A rule requiring that no single trading day generates more than a set percentage of your total profits, preventing traders from 'getting lucky' on one big day.
Minimum Trading Days
The minimum number of calendar or trading days a trader must be active in the market before being allowed to pass a challenge phase, even if the profit target is already met.
Evaluation Phase
The trading test period(s) a trader must pass — hitting profit targets while respecting all risk rules — before receiving a live funded account.