Updated 2026-03-08
For Traders Profit Target (Phase 2) Rule Explained
For Traders
Quick Answer
For Traders requires a 7% profit target on your initial Phase 2 account balance to receive funding.
The 7% profit target is calculated from your starting Phase 2 balance - $3,500 on a $50,000 account or $7,000 on a $100,000 account. You must achieve this profit level with realized gains to pass Phase 2 and qualify for a funded trading account. Failing to reach this target means you cannot advance to the funded stage.
Key Rule Details
Target
7%
Dollar Target ($100,000)
$7,000
Phase
Phase 2 only
Time Limit
None
Min Days
3 days
Calculation Example
Common Mistakes
Counting Unrealized Profits
Traders assume floating P&L counts toward the 7% target and stop trading with open positions. For Traders typically requires closed, realized profits to meet the target. On a $100,000 account, having $7,000 in unrealized gains while being at breakeven on closed trades means you haven't actually met the requirement yet.
Miscalculating Target Amount
Some traders calculate 7% from their current balance instead of the initial Phase 2 balance. If you start Phase 2 with $100,000 but your balance grows to $105,000, your target remains $7,000 total profit, not $7,350. This miscalculation can lead to premature celebration and inadequate trading.
Stopping Too Early
Traders reach exactly 7% and immediately stop trading, not accounting for potential drawdowns or spread costs on final trades. Reaching exactly $7,000 profit on a $100,000 account leaves no buffer for market fluctuations. A small adverse move could drop you below the target before evaluation ends.
Phase Duration Confusion
Traders assume they have unlimited time to reach the 7% target in Phase 2. Many prop firms have time limits for evaluation phases, and waiting too long to build profits can result in running out of time. Passive trading approaches may not generate sufficient returns within the evaluation window.
Protection Strategies
Target 8-9% Instead of 7%
Set your personal profit target 1-2% above the firm requirement to create a safety buffer. On a $100,000 account, aim for $8,000-$9,000 instead of exactly $7,000. This protects against minor drawdowns and ensures you stay comfortably above the minimum threshold even after normal market fluctuations.
Use 1% Risk Per Trade
Risk only 1% of your account per trade to build steady profits toward the 7% target. On a $50,000 account, this means $500 maximum risk per position, requiring 14 successful trades at 1:2 risk-reward to exceed the $3,500 target. This conservative approach minimizes the chance of large losses while working toward the profit goal.
Set Profit Tracking Alerts
Configure alerts when you reach 6%, 7%, and 8% profit levels to monitor your progress precisely. Use your trading platform or a spreadsheet to track realized profits against the initial balance. On a $100,000 account, set alerts at $6,000, $7,000, and $8,000 to know exactly where you stand relative to the requirement.
Avoid Trading Near Target Achievement
Stop taking new positions once you exceed 8% profits to protect your passing status. If you've made $8,500 on a $100,000 account, additional trades only risk dropping below the 7% requirement without meaningful upside. Focus on preserving your qualification rather than maximizing returns during Phase 2.
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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 For Traders's official website before purchasing a challenge. Updated 2026-03-08.