What is profit target?
A profit target is the gain a trader must achieve to pass an evaluation phase. Expressed as a percentage of nominal capital, generally 6 to 10 % in the first phase, it is often halved in the second.
It is the challenge’s advertised objective, and paradoxically rarely what causes failure.
The orders of magnitude
On forex, the first phase most often asks 8 to 10 %, the second 4 to 5 %. On futures, the norm settles around 6 % in a single phase. Three-step routes split the effort, sometimes with only 3 % per tier.
These figures must be read against the drawdown allowed. A 10 % target paired with 10 % drawdown imposes a 1:1 reward-to-risk ratio across the whole route — that is demanding. The same target with 5 % drawdown requires twice the precision. It is the ratio between the two numbers that measures real difficulty, never the target alone.
Target and account size
Being proportional, the target does not get harder on a large account: 10 % is still 10 %. The absolute drawdown rises too, however, which mechanically gives more room in cash terms. It is one reason experienced traders rarely pick the smallest sizes, where a single badly sized position consumes a large share of the margin.
What can raise the target
Some firms apply a lesser-known mechanism: breaching the consistency rule does not fail the account but recalculates the target upward. A trader who makes most of their gain on a single day can therefore watch the goal recede instead of passing. Check the exact formula for that recalculation before buying.
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Related terms
- Challenge A challenge is the paid evaluation a prop firm sells. The trader must reach a profit target without crossing the imposed loss limits, on a simulated account. Passing it gives access to a funded account.
- Consistency rule A consistency rule caps the share a single day can represent in total profit. Set between 15 and 50 % depending on the firm, it most often blocks a withdrawal rather than failing a challenge.
- Drawdown Drawdown is the maximum loss allowed on a prop firm account before it is closed. It is expressed as a percentage or a fixed amount, and calculated under three models — static, end-of-day trailing or intraday trailing — with very different consequences.
- Minimum trading days A minimum trading day requirement forces you to record a set number of active sessions before passing a phase. Generally 1 to 5 days, it rules out passes obtained on a single position.