Definition
What is Profit target?
The profit target is the closed profit, as a percentage of the initial balance, that a trader must reach to pass an evaluation phase.
Every evaluation has a goal: make a set percentage of the starting balance without breaking any loss limit. Reach it, meet the other objectives and the phase is passed.
The target is almost always measured on balance, which means only closed trades count. A large floating profit does not pass the phase until the position is closed.
A useful way to plan is to divide the target by the number of days you expect to trade. A 10% target over 20 trading days is 0.5% a day on average, which is achievable with small, repeatable risk.
Chasing the target with bigger positions near the end is the classic way to fail; the loss limits do not care how close you were.
Example
Example: on a $10,000 account with a 10% target, the phase is passed when the balance closes at $11,000 or more with no open positions, as long as every other objective is met.
At a prop firm
Axora Funded targets: 10% then 5% on the 2-Step, 10% on the 1-Step and Pass, 6% on each of the three Ascent steps, 8% on Spark and 6% on futures. Bolt has no target because it is funded instantly.
Frequently asked questions
Is there a time limit to reach the profit target?
It depends on the programme. On the Axora Funded 2-Step, phase 1 lasts up to 30 days and phase 2 up to 60 days.
Do I pass as soon as I hit the target?
Only if the minimum trading days and the consistency rule are also met, and every position is closed.