Updated 2026-03-08
FTMO Profit Target (Phase 1) Rule Explained
FTMO
Quick Answer
FTMO's Profit Target (Phase 1) requires traders to achieve 10% profit on their initial account balance to pass Phase 1.
The profit target is calculated from the starting balance and must be reached in profit, not just floating P&L. Failing to achieve this 10% profit within the 30-day time limit results in failing Phase 1 and losing the evaluation fee.
Key Rule Details
Target
10%
Dollar Target ($100,000)
$10,000
Phase
Phase 1 only
Time Limit
30 days
Min Days
4 days
Calculation Example
Common Mistakes
Relying on Floating Profits
Traders count unrealized gains toward their profit target, forgetting that only closed profits matter. If you have $9,500 in closed profits and $1,000 in floating profits on a $100,000 account, you haven't actually reached the $10,000 target yet. The position could move against you, leaving you short of the requirement.
Running Out of Time
Traders focus so much on risk management that they trade too conservatively and can't generate enough profit within 30 days. On a $100,000 account, making only $200-300 per week leaves you well short of the $10,000 target. You need to balance safety with sufficient position sizing to reach the goal.
Stopping After First Win
Some traders hit 10% early but then stop trading entirely, not realizing they still need to maintain minimum trading days. FTMO requires at least 4 trading days, so reaching your profit target in 2 days doesn't automatically pass you. You must continue trading while protecting your gains.
Confusing Phase Requirements
Traders sometimes think the 5% Phase 2 target applies to Phase 1, leading to under-trading and missed opportunities. On a $50,000 account, targeting only $2,500 instead of the required $5,000 makes it nearly impossible to pass. Each phase has distinct profit requirements that must be met.
Protection Strategies
Set Personal Target at 12%
Aim for 12% instead of exactly 10% to create a safety buffer for potential losing trades. On a $100,000 account, targeting $12,000 gives you $2,000 cushion if you hit some losses after reaching the requirement. This buffer helps ensure you maintain the profit target throughout the evaluation period.
Use 1-2% Risk Per Trade
Risk 1-2% per trade to generate meaningful profits without violating the 5% daily loss limit. On a $50,000 account, risking $500-1,000 per trade allows you to potentially make the $5,000 target in 5-10 winning trades. This position sizing balances growth potential with risk management.
Set Daily Profit Milestones
Break down the 10% target into daily goals over 20 trading days, aiming for 0.5% daily profit. On a $25,000 account, this means targeting $125 per day to reach $2,500 total. Track your progress daily and adjust your trading intensity if you're falling behind schedule.
Close Profits Before Major News
Secure profits by closing positions before high-impact news events that could reverse your gains. If you're at 9% profit with major NFP or Fed announcements coming, close positions to lock in gains rather than risk losing progress. You can always re-enter after the volatility subsides.
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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 FTMO's official website before purchasing a challenge. Updated 2026-03-08.