Updated 2026-03-08
Alpha Capital Group Profit Target (Phase 2) Rule Explained
Alpha Capital Group
Quick Answer
Alpha Capital Group's Profit Target (Phase 2) requires traders to achieve 5% profit to pass and receive funding.
The 5% profit target is calculated on the initial Phase 2 account balance and must be achieved through closed trades. Failing to reach this target means you cannot progress to a funded account, regardless of how well you manage risk or avoid other rule violations.
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 their floating profits count toward the 5% target when positions are still open. Alpha Capital Group only counts closed trades toward profit targets. A trader with a $50,000 account showing $2,400 in unrealized gains and only $100 in closed profits has not made meaningful progress toward the $2,500 requirement.
Conservative Trading Approach
Some traders become overly cautious after passing Phase 1's 10% target, thinking smaller gains will suffice. With Phase 2's 5% requirement, a $25,000 account still needs $1,250 in closed profits. Taking tiny $20-30 profits will require 40+ winning trades, making the target harder to achieve consistently.
Ignoring Time Pressure
Traders underestimate how the 5% target interacts with daily and total loss limits during the evaluation period. On a $100,000 account, you need $5,000 profit while staying within 4% daily loss ($4,000) and 6% total loss ($6,000) limits. Poor timing of trades can make the target unreachable even with winning strategies.
Miscalculating Required Amount
Traders confuse Phase 1 and Phase 2 targets or calculate percentages incorrectly. On a $10,000 Phase 2 account, the requirement is exactly $500 profit, not the $1,000 needed in Phase 1. Using the wrong target leads to either premature celebration or unnecessary overtrading to reach an inflated goal.
Protection Strategies
Set Personal Target at 6-7%
Aim for $300-350 profit on a $5,000 account instead of the minimum $250 requirement. This buffer accounts for potential small losses and ensures you comfortably exceed the 5% threshold. The extra 1-2% provides cushion without requiring dramatically different risk management.
Use 1% Risk Per Trade
Limit each trade to 1% of account balance, requiring 5-7 winning trades to reach the target. On a $50,000 account, risk $500 per trade targeting $2,500+ total profit. This approach balances progress toward the profit goal with protection against the 6% total loss limit.
Set Daily Progress Alerts
Monitor closed P&L daily and set alerts when reaching 2.5% profit (halfway point). On a $25,000 account, celebrate at $625 closed profit and plan your approach for the final $625. This prevents last-minute pressure and helps you recognize when you're on track.
Avoid Trading Major News
Skip high-impact news events that create volatility spikes, even though Alpha Capital Group allows news trading. Major events can quickly trigger the 4% daily loss limit ($2,000 on a $50,000 account), making it mathematically difficult to recover and still achieve the $2,500 profit target within evaluation constraints.
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Disclaimer: This guide is for informational purposes only and does not constitute financial advice. Prop firm rules change regularly — always verify current terms on Alpha Capital Group's official website before purchasing a challenge. Updated 2026-03-08.