Does The Funded Trader's Profit Target (Phase 1) include unrealized profits?

No, only closed and realized profits count toward the 8% profit target. Open positions with floating gains do not contribute to your progress until you close them and lock in the profits.

What happens if I breach the Profit Target (Phase 1)?

You cannot advance to Phase 2 of the evaluation if you don't achieve the 8% profit target. You would need to purchase a new evaluation challenge and restart Phase 1 from the beginning to have another attempt at funding.

Does the 8% profit target reset if I lose money after reaching it?

No, once you achieve 8% profit ($8,000 on a $100,000 account), you've permanently met the Phase 1 requirement. Subsequent losses don't reset this target, though you must still maintain other rules like maximum drawdown limits.

Is the profit target calculated on starting balance or current equity?

The 8% profit target is always calculated on your initial starting balance, not your current account equity. Whether your account grows to $110,000 or drops to $95,000, the target remains $8,000 on the original $100,000 balance.

Does The Funded Trader's Profit Target (Phase 1) include unrealized profits?

No, only closed and realized profits count toward the 8% profit target. Open positions with floating gains do not contribute to your progress until you close them and lock in the profits.

What happens if I breach the Profit Target (Phase 1)?

You cannot advance to Phase 2 of the evaluation if you don't achieve the 8% profit target. You would need to purchase a new evaluation challenge and restart Phase 1 from the beginning to have another attempt at funding.

Does the 8% profit target reset if I lose money after reaching it?

No, once you achieve 8% profit ($8,000 on a $100,000 account), you've permanently met the Phase 1 requirement. Subsequent losses don't reset this target, though you must still maintain other rules like maximum drawdown limits.

Is the profit target calculated on starting balance or current equity?

The 8% profit target is always calculated on your initial starting balance, not your current account equity. Whether your account grows to $110,000 or drops to $95,000, the target remains $8,000 on the original $100,000 balance.

Updated 2026-03-08

The Funded Trader Profit Target (Phase 1) Rule Explained

The Funded Trader

Quick Answer

The Funded Trader requires an 8% profit target on your initial account balance to pass Phase 1 evaluation.

The rule is calculated as 8% of your starting account balance, meaning you need $8,000 profit on a $100,000 account. Only realized profits count toward this target. Failing to achieve this profit target means you cannot advance to Phase 2 of the evaluation process.

Key Rule Details

Target

Dollar Target ($100,000)

$8,000

Phase

Phase 1 only

Time Limit

None

Min Days

0 days

Calculation Example

Account Size: $100,000 — Profit Target (Phase 1): $8,000

Account Size	$100,000
Profit Target (Phase 1) Limit	$8,000
Scenario: Closed P&L	$4,800
Scenario: Floating P&L	$0
Total Exposure	$4,800
Remaining Buffer	$3,200

Limit used:60%

Common Mistakes

Counting Unrealized Profits

Traders often assume floating profits count toward their 8% target and stop trading while positions are open. The Funded Trader only counts closed, realized profits toward the target. If you have $7,500 in realized gains plus $1,000 in open profits, you haven't met the $8,000 requirement yet.

Miscalculating the Target Amount

Some traders calculate 8% based on their current balance instead of the initial balance. On a $100,000 account, the target is always $8,000 regardless of current account value. If your account grows to $105,000, you still only need $8,000 total profit, not $8,400.

Stopping Just Short

Traders frequently stop at $7,800-$7,900 profit thinking they're close enough to pass Phase 1. The Funded Trader requires exactly 8% or more - $7,999 on a $100,000 account still fails. You must hit the full $8,000 minimum to advance to Phase 2.

Ignoring Drawdown While Chasing

Focusing solely on hitting 8% profit while ignoring other rules like maximum drawdown limits. Traders often breach drawdown rules in the final push to reach their profit target. You must maintain all risk management rules while achieving the 8% requirement.

Protection Strategies

Set Personal Target at 8.5%

Aim for $8,500 profit on your $100,000 account instead of stopping at exactly $8,000. This buffer protects against any calculation errors or small losing trades that might push you below the requirement. The extra 0.5% provides safety margin while staying well within risk limits.

Use 1% Risk Per Trade

Risk maximum $1,000 per trade to systematically build toward your $8,000 target. This position sizing allows for 8 winning trades to meet your goal while maintaining proper risk management. Smaller position sizes reduce the temptation to over-leverage when approaching the target.

Track Daily Profit Progress

Monitor your realized P&L daily and set milestone targets like $2,000 weekly to reach $8,000 within a month. Use trading journal alerts when you hit 6% ($6,000) to prepare your final approach. This prevents last-minute pressure trading to meet the requirement.

Avoid Trading Before Major News

Stop taking new positions 2-3 days before reaching your $8,000 target if major economic announcements are pending. While The Funded Trader allows news trading, volatile price movements near your target can cause unnecessary losses. Secure your Phase 1 pass first, then use Phase 2 for news opportunities.

Related Rules

Payout Split & Schedule

The Funded Trader Comparisons

/Compare/Fundednext vs The Funded Trader /Compare/Ftmo vs The Funded Trader /Compare/Fundingpips vs The Funded Trader /Compare/The Funded Trader vs The5ers

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 The Funded Trader's official website before purchasing a challenge. Updated 2026-03-08.