What is a profit target, and how high should it be?
Quick answer
A profit target is the gain, as a percentage of the starting balance, that a trader must reach to pass. Common targets are around 8% to 10% for one-step and first phases, and around 5% for second phases. The right level balances your payout cost against whether skilled traders can realistically pass.
Detailed answer
Factors when setting it:
- Relationship to loss limits: a 10% target with a 5% daily and 10% overall limit is a familiar shape.
- Time limits: a high target with a short time limit encourages excessive risk.
- Audience: experienced traders expect achievable targets.
- Economics: lower targets raise pass rates and payout costs.
PropExecutor's profit target measures equity against the starting balance, and passing also waits for any other pass conditions, such as minimum trading days. Leaving the profit target out of a rule set creates an account that never passes, which is how instant funding accounts are configured.
Worked example
On a $100,000 account with an 8% target, the trader passes at $108,000 equity, provided every other condition, such as minimum trading days, is also met.
A balance to check
The target should be reachable without exceeding the daily limit on most days. A 10% target with a 3% daily limit, for example, forces several good days, which many firms consider reasonable; a 15% target with the same limit pushes traders to over-risk.
PropExecutor team · Updated
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