Does FTMO's Profit Target (Phase 2) include unrealized profits?

No, FTMO only counts closed trades toward the 5% profit target. Your floating profits and losses are not included in the profit calculation. You must actually close positions showing a net 5% gain based on your initial Phase 2 balance.

What happens if I breach the Profit Target (Phase 2)?

You cannot breach the profit target - it's an achievement requirement, not a limit. If you fail to reach 5% profit within the 30-day time limit while meeting all other rules, you fail Phase 2 and cannot receive a funded account. You would need to restart the evaluation process.

Does the Profit Target (Phase 2) reset if I lose money?

No, the 5% profit target never resets and is always calculated from your initial Phase 2 starting balance. Even if your account drops below the starting balance, you still need to achieve the original dollar amount in total closed profits to pass.

Is FTMO's Profit Target (Phase 2) calculated on balance or equity?

The profit target is calculated based on closed trade profits only, which affects your balance rather than equity. FTMO uses your initial Phase 2 account balance as the baseline, and floating positions (which affect equity) don't count toward meeting the 5% requirement.

Does FTMO's Profit Target (Phase 2) include unrealized profits?

No, FTMO only counts closed trades toward the 5% profit target. Your floating profits and losses are not included in the profit calculation. You must actually close positions showing a net 5% gain based on your initial Phase 2 balance.

What happens if I breach the Profit Target (Phase 2)?

You cannot breach the profit target - it's an achievement requirement, not a limit. If you fail to reach 5% profit within the 30-day time limit while meeting all other rules, you fail Phase 2 and cannot receive a funded account. You would need to restart the evaluation process.

Does the Profit Target (Phase 2) reset if I lose money?

No, the 5% profit target never resets and is always calculated from your initial Phase 2 starting balance. Even if your account drops below the starting balance, you still need to achieve the original dollar amount in total closed profits to pass.

Is FTMO's Profit Target (Phase 2) calculated on balance or equity?

The profit target is calculated based on closed trade profits only, which affects your balance rather than equity. FTMO uses your initial Phase 2 account balance as the baseline, and floating positions (which affect equity) don't count toward meeting the 5% requirement.

Updated 2026-03-08

FTMO Profit Target (Phase 2) Rule Explained

FTMO

Quick Answer

FTMO's Phase 2 requires achieving a 5% profit target based on the initial Phase 2 account balance.

The 5% profit target is calculated from your starting Phase 2 balance and must be reached through closed trades only. Unrealized profits don't count toward the target, and failure to reach 5% profit means you cannot progress to receive a funded account.

Key Rule Details

Target

Dollar Target ($100,000)

$5,000

Phase

Phase 2 only

Time Limit

60 days

Min Days

4 days

Calculation Example

Account Size: $100,000 — Profit Target (Phase 2): $5,000

Account Size	$100,000
Profit Target (Phase 2) Limit	$5,000
Scenario: Closed P&L	$3,000
Scenario: Floating P&L	$0
Total Exposure	$3,000
Remaining Buffer	$2,000

Limit used:60%

Common Mistakes

Counting Unrealized Profits

Traders often think their floating profits count toward the 5% target, but FTMO only counts closed positions. On a $100,000 account needing $5,000 profit, having $6,000 in unrealized gains means you still haven't met the target until those trades are closed.

Rushing Near Deadline

With only 30 days to achieve the target, traders panic in the final days and overtrade to reach 5% quickly. This desperation leads to poor risk management and often triggers the 5% daily loss limit, failing the challenge entirely.

Ignoring Minimum Trading Days

Traders focus solely on hitting 5% profit but forget FTMO requires at least 4 trading days. Achieving the profit target in 2-3 days means waiting additional days while protecting gains, creating unnecessary stress and potential losses.

Wrong Balance Reference

Some traders calculate 5% from their current balance instead of the initial Phase 2 balance. If you started with $100,000 but are now at $98,000, you still need $5,000 total profit (from the original balance), not 5% of $98,000.

Protection Strategies

Set Personal Target at 6-7%

Aim for 6-7% profit instead of exactly 5% to create a safety buffer. This accounts for potential small losses during the remaining trading days and ensures you stay above the minimum requirement even after minor setbacks.

Risk Only 1% Per Trade

Use conservative 1% position sizing to steadily build toward the 5% target without risking large drawdowns. This approach typically requires 8-10 winning trades at 0.5-0.7% profit each, making the target achievable through consistent execution.

Set Daily Profit Alerts

Configure alerts when you reach 1.25% daily profit (one-quarter of the total target) to avoid overtrading on good days. This helps maintain steady progress while preventing the temptation to risk accumulated gains on additional positions.

Avoid Trading Final 3 Days

Once you hit the 5% target with at least 4 trading days completed, stop trading for the remaining challenge period. The risk of giving back profits through continued trading outweighs any potential additional gains since you've already met the requirements.

Related Rules

Profit Target (Phase 1)

FTMO Comparisons

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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.