Profit target

The profit, usually a percentage of the starting balance, that you must reach to pass a challenge phase.

A profit target of 10% on a $100,000 account means reaching a balance of $110,000. Most firms measure it on closed trades, and some also require the target to be reached without breaking any other rule along the way, such as minimum trading days or a consistency rule.

The target only means something next to the drawdown. Before costs, a trader with no edge passes roughly max drawdown ÷ (target + max drawdown) of the time, so a lower target or a wider drawdown makes a challenge easier.

Related

• Pass-odds calculator
• Days-to-target calculator
• The real odds of passing with no edge
• All glossary terms

General definition. Rules differ between firms and change over time; your firm’s current terms always take precedence.