Updated 2026-03-08
FundedX Profit Target (Phase 1) Rule Explained
FundedX
Quick Answer
FundedX requires traders to achieve a 5% profit target on their initial account balance to pass Phase 1.
The profit target is calculated as 5% of your starting balance and must be reached in unrealized or realized profits. For example, a $10,000 account needs $500 profit to advance to Phase 2. Failing to reach this target means you cannot progress and must restart the evaluation.
Key Rule Details
Target
5%
Dollar Target ($100,000)
$5,000
Phase
Phase 1 only
Time Limit
7 days
Min Days
None
Calculation Example
Common Mistakes
Confusing Unrealized with Required
Traders often think they need to close all positions to achieve the profit target, but FundedX counts unrealized P&L toward the 5% requirement. On a $50,000 account, you need $2,500 total profit, whether open positions show +$1,500 and closed trades show +$1,000. The combination counts toward your target.
Ignoring the Time Pressure
With only 7 days to achieve 5% profit, traders rush into oversized positions on day 6 or 7. A trader with a $25,000 account needing $1,250 profit might risk the 3% daily loss limit ($750) trying to hit the target quickly. This often results in account failure rather than target achievement.
Miscalculating Required Dollar Amount
Traders sometimes calculate profit targets incorrectly, especially on larger accounts. On a $100,000 FundedX account, the requirement is exactly $5,000, not $4,000 or $6,000. This miscalculation leads to premature celebration or unnecessary overtrading when they're actually closer to or past the target.
Stopping Just Short
Many traders stop trading when they reach 4.8% or 4.9% profit, thinking they're close enough to the 5% target. On a $200,000 account, being at $9,600 profit instead of the required $10,000 means you haven't passed Phase 1. The target must be fully achieved, not approximately reached.
Protection Strategies
Target 6% Instead of 5%
Aim for 6% profit to create a safety buffer above FundedX's 5% requirement. On a $25,000 account, target $1,500 instead of the minimum $1,250. This buffer protects against small losses or spread costs that might drop you below the required threshold before evaluation ends.
Use 1% Daily Profit Targets
Divide the 5% target across 5-6 trading days, aiming for 1% daily profit to avoid rushed decisions. On a $50,000 account, this means $500 per day rather than scrambling for $2,500 in the final days. Smaller daily goals reduce the temptation to overtrade or breach the 3% daily loss limit.
Set Profit Target Alerts
Configure alerts at 4.5%, 5%, and 5.5% profit levels to track progress precisely. Most platforms allow balance-based alerts, so on a $100,000 account, set alerts at $104,500, $105,000, and $105,500. This prevents miscalculation and ensures you know exactly when you've achieved the FundedX requirement.
Avoid Trading After Target Achievement
Stop active trading once you hit 5% profit and focus on protecting gains until Phase 1 ends. If your $10,000 account reaches $10,500, avoid new positions that could trigger the 4% maximum total loss rule. Let time expire naturally rather than risk losing your qualification through unnecessary trades.
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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 FundedX's official website before purchasing a challenge. Updated 2026-03-08.