Glossary · Prop-firm trading
Profit target
The gain, as a share of the initial account size, that completes an evaluation phase.
Commonly 8% or 10% in a first phase and 5% in a second, measured on closed balance at most firms. A funded account usually has no target, only the loss lines.
Worked example
A two-step evaluation on 100,000 with targets of 8% and 5% asks for 8,000 of closed profit in the first phase and 5,000 in the second, each inside the same 5% daily and 10% maximum loss lines. At 1% a trade and an expectancy of 0.35R, the first phase is about 23 trades on average, and a real run is streakier than its average.