Profit target
The percentage of profit you must reach to pass the evaluation (e.g. 8% in phase 1, 5% in phase 2). Most firms have removed the time limit.
The ratio of profit target to loss limit determines how hard an evaluation is: a 10% target with a 5% daily limit is harder than an 8% target with a 10% total drawdown.
Reducing risk as you approach the target (and continuing with the same discipline after passing) is the key to protecting a funded account.
Related terms
Where it appears in the guides
Guides whose text uses this term; most frequent first.