Profit Target Explained

A profit target is the amount a trader must make to pass an evaluation stage. It looks simple, but it only makes sense when compared with drawdown, daily loss and minimum trading days.

Always verify the current wording on the firm’s official rule page. Small wording differences can materially change risk.

Profit target traps

• A low target is not automatically easy if drawdown is tight.
• A high target can encourage oversized trades.
• Some firms require all positions closed before the target counts.
• A consistency or best-day rule can mean hitting the target is not enough.

How to compare firms

Write down the rule in plain English, then ask: would my normal strategy break this rule during a normal losing day, a normal winning day, or a high-volatility session? If yes, that firm may be a poor fit even if the headline price is attractive.