TPThe Trading Playbook

Updated 2026-04-17

FundingPips Profit Target (Phase 2) Rule Explained

FundingPips
Quick Answer

FundingPips's Profit Target (Phase 2) requires traders to achieve 5% profit to pass Phase 2.

The profit target is calculated based on your initial Phase 2 account balance and must be reached through realized profits. Failing to achieve this 5% profit means you cannot progress to receive a funded account and must restart the evaluation process.

Key Rule Details

Target
5%
Dollar Target ($100,000)
$5,000
Phase
Phase 2 only
Time Limit
None
Min Days
3 days

Calculation Example

Account Size: $100,000Profit 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 assume floating profits count toward the 5% target and stop trading while positions are open. Only closed, realized profits contribute to meeting the profit target. On a $50,000 account, having $2,600 in open profits doesn't mean you've achieved the required $2,500 target.
Rushing Near Deadline
Traders panic when approaching evaluation deadlines and take excessive risks to hit the 5% target quickly. This often leads to violating the 5% daily loss or 10% total loss limits. A $100,000 account needs $5,000 profit, but risking $5,000 daily to achieve it can cause immediate failure.
Ignoring Compounding Requirements
Traders calculate the target based on their current balance instead of the initial Phase 2 balance. If your $25,000 account grows to $26,000, you still only need $1,250 total profit (5% of initial), not 5% of the new balance.
Stopping at Minimum
Traders stop trading immediately after hitting exactly 5% profit, leaving no buffer for potential losses. With a $50,000 account, achieving exactly $2,500 profit means any subsequent loss could drop you below the target if you haven't secured the passing status yet.

Protection Strategies

Target 6-7% Personal Buffer
Aim for 6-7% profit instead of the minimum 5% requirement to create a safety margin. On a $50,000 account, target $3,000-$3,500 instead of just $2,500. This buffer protects against small losses that could drop you below the passing threshold.
Use 1% Maximum Risk Per Trade
Limit each trade to 1% risk of your account balance to achieve steady progress toward the 5% target. On a $25,000 account, risk only $250 per trade, requiring 5 successful 1:1 trades to reach the $1,250 profit target safely.
Set Profit Milestone Alerts
Create alerts at 3%, 4%, and 5% profit levels to track progress toward your target. On a $100,000 account, set alerts at $3,000, $4,000, and $5,000 to monitor how close you are to the required target without constantly checking.
Reduce Size After Target Achievement
Once you've secured the 5% profit target, reduce position sizes significantly to preserve your passing status. After reaching $2,500 on a $50,000 account, trade with smaller positions to stay active while protecting your qualification for the funded account.

Related Rules

Maximum Daily Loss
5%
Maximum Total Loss
10%
Profit Target (Phase 1)
8%
Minimum Trading Days
3 days

FundingPips Comparisons

Fundednext vs FundingpipsFtmo vs FundingpipsFundingpips vs The Funded TraderFundingpips vs The5ers

Frequently Asked Questions

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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 FundingPips's official website before purchasing a challenge. Updated 2026-04-17.