Profit target — The amount of profit required to pass an evaluation phase, quoted as a dollar figure or a percentage of the account size.
How profit target works in prop trading
The profit target is the pass condition. Futures evaluations commonly set it at 6% of nominal account size; forex-style programs run higher, often 8% to 10% in a first phase. On its own the number tells you almost nothing about difficulty.
What matters is the target measured against the drawdown allowance. A $3,000 target against a $2,000 drawdown means you must make one and a half times your entire risk budget without ever spending it — a demanding test. The same target against a $4,000 static drawdown is a routine one. Divide target by drawdown before comparing any two programs.
Key points
- Common futures targets sit near 6% of account size; two-step programs often ask 8% to 10% in phase 1.
- Target divided by drawdown allowance is the real difficulty metric — above 1.5 is demanding.
- The target usually disappears at the funded stage; the drawdown does not.
- Hitting the target does not pass the account if minimum trading days are outstanding.
Example
A $50,000 account with a $3,000 target and $2,000 trailing drawdown has a 1.5 target-to-risk ratio. The same target with a $3,000 static drawdown is 1.0 — a materially easier account.
Also known as
- target profit
- profit goal
- pass target
Frequently asked questions
What is a typical prop firm profit target?
Around 6% of account size for a one-step futures evaluation, and 8% to 10% for phase 1 of a two-step program with a smaller phase 2. Always read it next to the drawdown allowance rather than alone.
Is there a profit target on a funded account?
Usually not. The funded stage replaces the target with payout conditions — minimum trading days, a buffer requirement, and often a consistency rule. Some scaling plans do set profit milestones for account increases.
Put this into practice
Profit target is described here as a plain-language educational definition. Firms, platforms, and account programs may apply different conditions or calculations. Verify the current official terms before using this definition to make an account decision.