Profit Target
In the context of prop firm evaluations, a profit target is the minimum net profit, expressed as a percentage of the initial simulated account balance, that a trader must achieve during an evaluation phase to qualify for a funded account or advance to the next evaluation stage.
The target is most commonly expressed as a percentage of the initial account balance — 8% to 10% for Phase 1 of a two-phase evaluation, 5% for Phase 2, and 10% to 12% for a single-phase evaluation are typical bands. Profit is measured on closed trades only; floating profit on open positions does not count toward the target.
This page covers the mechanic; it is not trading advice.
Prop firm rules vary between firms and change frequently. Always verify specific rules directly with your firm before making any decision.
How the profit target is measured
The profit amount you need to reach during the challenge. On a $10,000 account with a 10% target, you must generate $1,000 in net closed profit before you can pass. Profit is cumulative across all closed trades from the start of the evaluation — there is no separate per-trade or per-day target.
Reaching the target alone is not always sufficient. Firms with a consistency rule require that no single day's profit exceeds a defined percentage of the cumulative profit at evaluation close. A trader who hits the target on a single 8% day is blocked from passing until additional balanced trading days bring the day's share of total profit under the consistency threshold.
Reaching a 10% target on a $10,000 account
Account: $10,000. Phase 1 target: 10% = $1,000 net closed profit. Risk per trade: 1% = $100. Average R:R: 2:1, so the average winning trade returns $200 and the average losing trade costs $100.
Expected profit per trade at a 50% win rate = (0.50 × $200) − (0.50 × $100) = $50. To reach $1,000 the trader needs $1,000 ÷ $50 = 20 net trades. At one trade per day this is approximately 20 trading days; at three trades per day approximately 7 trading days.
These are expected values, not guarantees — actual outcomes depend on the realised distribution of wins and losses. A losing streak that breaches the maximum drawdown ends the challenge regardless of how many winning trades follow.
Related terms
Common questions
Does the profit target include or exclude commission and swap?
Net profit is calculated after commission and after any swap charges accrued during the evaluation period. A trader holding positions overnight will see profit reduced by the swap charge on each rollover; a trader paying commission per round-turn sees profit reduced by the per-lot commission on every executed trade. Firms publish the net-profit calculation method in their evaluation terms.
What happens if the trader exceeds the profit target before reaching the minimum trading days?
The evaluation continues until the minimum trading days requirement is met. The trader may continue trading toward additional profit or trade conservatively to preserve the existing balance, but the evaluation cannot pass until the minimum days threshold is also satisfied. Most firms reset the evaluation if the maximum trading days is also reached without the minimum being met.