MB CAPITALS · GLOSSARY

Profit Target

Definition

The profit target is the percentage gain a trader must achieve to pass a prop-firm challenge phase. FTMO Challenge requires 8% profit, Verification requires 5%. Most other firms use 8-10% on Phase 1 and 4-5% on Phase 2. Hitting the target before breaching daily-loss or max-drawdown moves you to the next stage.

Why Verification has a smaller target

Phase 2 (Verification) typically requires half the profit-percentage of Phase 1 (Challenge). The reasoning: passing twice in a row demonstrates consistency, not luck. The smaller target on the second phase makes the test about repeatability rather than aggressive risk-taking.

How long it should take to hit

With a documented strategy averaging 1R per trade and per-trade risk of 1%, hitting an 8% target requires roughly 8 winning trades minus losses — typically 25-40 total trades counting variance. Trying to hit the target faster usually means oversizing, which then breaches drawdown before the target is reached.

Common profit-target mistakes

Sizing up to hit the target before the trading-period ends. Trading low-quality setups out of fear of running out of time. Doubling positions on the way to the target after a small loss. Each of these increases breach-risk far more than it increases hit-probability.

Maximilian Bossow

Author

Maximilian Bossow

Independent prop-firm trader. Reached FTMO Platinum tier with verifiable Overall Rewards across multiple funded accounts. Founder of MB Capitals — a coaching system for traders who want to pass prop-firm challenges through structured risk management, not gurus. The proof is on the homepage: every cert, every payout, every receipt of what it took to get there.