What is the profit target rule in a prop firm challenge?
The profit target is the minimum profit percentage a trader must reach to pass each phase of an evaluation. Phase 1 typically requires 8–10% profit, and Phase 2 requires 4–5%. Profit targets must be hit while respecting all other rules simultaneously.
What is the profit target rule in a prop firm challenge?
The profit target is the minimum profit percentage a trader must reach to pass each phase of an evaluation. Phase 1 typically requires 8–10% profit, and Phase 2 requires 4–5%. Profit targets must be hit while respecting all other rules simultaneously.
Key Points
- Phase 1 usually requires 8–10% profit
- Phase 2 usually requires 4–5% profit
- Must be achieved while respecting drawdown rules
- Cannot be hit by violating any other firm rule
- Some instant funding models have no profit target
Firm Comparison
| Firm | Policy | Threshold | Consequence |
|---|---|---|---|
| FTMO | Profit Target | 10% Phase 1, 5% Phase 2 | Must be hit to advance |
| FXIFY | Profit Target | 10% Phase 1, 5% Phase 2 | Must be hit to advance |
| FundingPips | Profit Target | 8% Phase 1, 5% Phase 2 | Must be hit to advance |
| BrightFunded | Profit Target | 8% Phase 1, 5% Phase 2 | Must be hit to advance |
| The5ers | Profit Target | 8% Phase 1, 5% Phase 2 | Must be hit to advance |
| E8 Markets | Profit Target | 8% Phase 1, 5% Phase 2 | Must be hit to advance |
| Finotive Funding | Profit Target | 8% Phase 1, 5% Phase 2 | Must be hit to advance |
| Think Capital | Profit Target | 10% Phase 1, 5% Phase 2 | Must be hit to advance |
Frequently Asked Questions
What is the profit target rule in prop firm challenges?
It is the minimum profit percentage you must achieve to pass each phase of the challenge and receive a funded account.
What is the typical profit target for prop firm challenges?
Most firms require 8–10% in Phase 1 and 5% in Phase 2 of a 2-step challenge.
Does the profit target include floating profits?
Some firms allow you to pass with floating profits; others require the target to be realised (positions closed).
Is there a time limit to reach the profit target?
Most firms have no time limit, but some (like older FTMO plans) set a maximum of 30 days per phase.