Profit Target

What is a Profit Target?

In prop firm challenges, the profit target is the minimum profit you must achieve to pass to the next phase. Typical targets are 8-10% for Phase 1 and 4-5% for Phase 2. On a $100,000 account, a 10% target means you need to earn $10,000 in net profit.

Target Strategy

• Don't rush: Most challenges give you 30 days. You don't need to hit the target in week 1. Spreading it over 20 trading days means you need 0.5% per day for a 10% target
• Risk-adjusted approach: At 1% risk per trade with a 2:1 R:R and 50% win rate, you need roughly 20 trades to hit a 10% target. That's 1 trade per day
• Avoid target fixation: Trading differently because you're "close to the target" leads to emotional decisions. Trade your plan regardless of where you stand

The Target Trap

The biggest mistake is treating the profit target as a daily goal that must be achieved aggressively. Traders who approach a 10% monthly target as a 0.5% daily target trade very differently from those who try to "have a big day." Consistent small gains compound; aggressive target-chasing leads to drawdown.