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What is Profit Target?

The percentage gain required to pass a prop firm evaluation phase — typically 8–10% for Phase 1 and 4–5% for Phase 2.

The profit target is the minimum gain you must achieve to pass a prop firm challenge phase. It is usually expressed as a percentage of your starting account balance and must be reached within a specified time period.

Typical prop firm profit targets:

FirmPhase 1 TargetPhase 2 TargetTime Limit
FTMO10%5%30 days / 60 days
MyFundedFX8%5%30 days / 60 days
E8 Funding8%5%30 days / 60 days
Topstep$3,000 on $50kN/AUnlimited

Balancing profit target vs. drawdown:

The challenge is achieving the profit target while staying within the drawdown limits. On a $100,000 FTMO account:

  • You need to gain $10,000 (10%)
  • While never losing more than $10,000 (10% overall) or $5,000/day (5% daily)
  • This means you cannot "all-in" to hit the target quickly — one bad trade could breach the drawdown before you hit the goal.

    Optimal position sizing for challenges:

    With a 1% risk per trade and a 1:3 R:R, you need roughly 4–5 winning trades to hit a 10% target even with some losses. With 0.5% risk per trade, you have more buffer against the drawdown limits.

    Time pressure:

    A 30-day limit with a 10% target means you need an average of ~0.33%/day. Many experienced traders find this achievable with one solid trade every few days — consistency matters more than frequency.

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