Profit Target
Also known as: challenge target, phase target, profit objective, evaluation profit goal
What is it?
A profit target is the gain an evaluation account must reach to pass - stated as a percentage of the starting balance and measured on the account as a whole, not on any single trade. It is not a take-profit. A take-profit closes one position at a price; a profit target is the account-level number that ends the phase. On a $100,000 challenge an 8% target is $8,000, and at 1% risk per trade with a 2:1 reward-to-risk that is roughly eight net winning trades - not eight trades, since the losers subtract along the way.
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Profit target 5200 / 8000 $65% of target The phase ends when this fills
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Minimum trading days 4 / 5 days80% of target One more day to claim a pass
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Daily loss used today 4100 / 5000 $82% of limit used Account breaches at $5,000
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Maximum drawdown used 8600 / 10000 $86% of limit used Measured from the high-water mark
Firms differ on how it is read: some require the balance to close above the target, others accept equity touching it intraday, and the difference decides whether an open position can pass the phase for you. The target is the easier half of the test. What actually ends attempts is reaching it without ever losing 5% in a day or drawing down 10% in total, and those limits do not move as you get closer. That is why the final stretch is the dangerous one - the temptation is to size up when the remaining distance is small, and the daily loss limit is measured on the same equity the larger position moves.
Your capital is at risk. See /risk-warning.
Why it matters: It is the account-level gain that ends a phase, and it has to be reached without ever breaching the daily loss and drawdown limits along the way.
Profit target ($) = starting balance x target %
Together with the loss limits it fixes the reward-to-risk the whole evaluation has to run at, which decides whether the time limit is realistic at your size.
Real-world example
An 8% target on a $100,000 challenge is $8,000. At 1% risk and a 2:1 reward-to-risk that is roughly eight net winning trades, not eight trades.
How SignalBots handles it
SignalBots publishes entry, stop and target as levels, so the reward-to-risk of a setup is visible before you take it and can be checked against what the phase target actually requires. See /risk-warning.
Pro tip
Divide the target by your average reward per trade to get the number of net winners it needs - that count, not the percentage, tells you if the time limit is realistic.
Common pitfalls
Increasing position size once the target is close. The daily loss limit does not move with your progress, and the last stretch is where most accounts breach.
Frequently asked questions
Is the target measured on balance or equity?
It depends on the firm. Some require a closed balance above the target, others accept equity touching it with a position still open. That single clause decides whether an open trade can pass the phase for you.
How is a profit target different from a take-profit?
A take-profit is a price level that closes one position. A profit target is an account-level total that ends the whole phase, and it is reached by the net result of many trades rather than by any single exit.
Does a funded account have a profit target?
No. Once funded there is nothing left to reach - the limits still apply, but the target is replaced by the payout cycle and by any minimum trading days that a withdrawal request requires.
What happens if I pass the target before the minimum trading days?
The phase stays open until the day requirement is met, and the account stays exposed to every limit for those extra days. Reaching the number early does not end the evaluation.
Should I take more risk to reach the target faster?
The arithmetic works against it. A larger position brings the target closer and the daily loss limit closer at the same rate, on the same equity - and only one of those two outcomes ends the account.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
