Updated 2026-03-08
E8 Markets Profit Target (Phase 2) Rule Explained
E8 Markets
Quick Answer
E8 Markets requires 5% profit on initial Phase 2 balance to pass evaluation and receive funded account.
The profit target is calculated from your initial Phase 2 account balance, requiring closed trades to count toward the 5% requirement. Failing to reach this profit target means you cannot progress to a funded account and must restart the evaluation process.
Key Rule Details
Target
5%
Dollar Target ($100,000)
$5,000
Phase
Phase 2 only
Time Limit
None
Min Days
None
Calculation Example
Common Mistakes
Counting Unrealized Profits
Traders assume floating profits count toward the 5% target when only closed trades matter. On a $25,000 Phase 2 account, having $1,000 in open profits doesn't help you reach the $1,250 target unless you close those positions. This leads to failed evaluations when traders think they've already passed.
Using Current Balance
Many calculate the 5% requirement from their current account balance instead of the initial Phase 2 balance. If your $50,000 account grows to $52,000, the target remains $2,500 (5% of initial $50,000), not $2,600. This miscalculation causes traders to stop trading before actually meeting the requirement.
Rushing Near Deadline
Traders panic when approaching time limits and take excessive risks to hit the 5% target quickly. This often triggers the 5% daily loss limit or 8% maximum loss rule. On a $100,000 account, risking $4,000+ in a single day to reach the $5,000 target frequently results in account termination instead.
Ignoring Compound Requirements
Traders forget they must maintain the 5% profit while avoiding loss limits simultaneously. Achieving 6% profit then losing 4% brings you to 2% net profit, failing the target. This happens when traders become careless after initially reaching the profit goal without securing their gains.
Protection Strategies
Set Personal Target Above 5%
Aim for 6-7% profit instead of exactly 5% to create a safety buffer. On a $25,000 account, target $1,500-$1,750 instead of the minimum $1,250. This buffer protects against small losses after reaching the initial target and provides room for market volatility.
Use Conservative Position Sizing
Risk no more than 1-2% per trade to steadily build toward the 5% target without threatening loss limits. On a $50,000 account, this means $500-$1,000 maximum risk per position, requiring 3-5 successful trades to reach the $2,500 profit target safely.
Monitor Progress with Profit Alerts
Set alerts at 3%, 5%, and 6% profit levels to track your advancement toward the target. These notifications help you adjust strategy as you approach the goal and remind you to secure profits. Use your broker platform or phone alerts to stay informed without constant chart watching.
Avoid Trading After Reaching Target
Stop trading immediately after securing 5%+ profit to prevent giving back gains through overtrading. The profit target doesn't require maintaining profits for extended periods, so once achieved, focus on preserving your success. Consider this a completed objective rather than continuing to chase additional profits.
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Frequently Asked Questions
Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on E8 Markets's official website before purchasing a challenge. Updated 2026-03-08.