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Profit target

Evaluation Also called: profit goal, phase target

The gain required to pass an evaluation phase. Usually 8% to 10% on a first phase and 4% to 5% on a verification phase.

How firms apply it

The target is measured on the starting balance, so it does not move. What matters is the target relative to the drawdown you are allowed: a 10% target with a 5% daily limit and a 10% total limit is a very different task from a 10% target with a 3% trailing limit.

What it means for your trading

Divide the target by the total drawdown to get the ratio that actually describes difficulty. Anything at or below 1:1 is workable; well above it means you are being asked to make more than you are allowed to lose.

Work this out for your account
Lot size for a target risk against firm limits.
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