Updated 2026-03-08
The5ers Profit Target (Phase 1) Rule Explained
The5ers
Quick Answer
The5ers requires a 10% profit target on initial account balance to pass Phase 1 evaluation.
The profit target is calculated as 10% of your starting account balance, meaning you need $500 profit on a $5,000 account or $1,000 on a $10,000 account. This is a requirement to advance, not a breach rule - failing to reach 10% profit simply means you don't pass Phase 1.
Key Rule Details
Target
10%
Dollar Target ($10,000)
$1,000
Phase
Phase 1 only
Time Limit
None
Min Days
None
Calculation Example
Common Mistakes
Confusing Profit Target with Loss Limits
Traders often think the 10% profit target works like a loss limit that causes immediate failure. The profit target is actually a requirement to pass - you won't breach your account by not reaching it, but you simply won't advance to Phase 2 until you achieve the full 10% profit on a $5,000 account ($500) or $10,000 account ($1,000).
Counting Unrealized Profits as Target Achievement
Some traders assume that having $500+ in floating profits on a $5,000 account means they've hit the target. The5ers requires you to actually realize the 10% profit through closed positions. Having $600 in open trades doesn't count toward your $500 target until those positions are closed with profit.
Rushing Final Trades to Hit Target
When sitting at 8-9% profit, traders often take oversized positions to quickly reach the 10% target. On a $5,000 account with $450 profit, risking large amounts to get the final $50 can easily trigger the 3% daily loss limit ($150) and cause immediate failure, negating weeks of progress.
Ignoring Account Size When Calculating Requirements
Traders sometimes miscalculate their profit requirements across different account sizes. The 10% applies to initial balance regardless of account size, so a $20,000 account needs $2,000 profit, not the same dollar amount as smaller accounts. This miscalculation leads to either overtrading or stopping short of the actual requirement.
Protection Strategies
Set Personal Profit Buffer Above 10% Requirement
Aim for 12-13% profit instead of exactly 10% to create a safety margin. On a $5,000 account, target $600-650 instead of the minimum $500. This buffer protects against small losing trades that might pull you below the 10% threshold and provides flexibility for final position management.
Use Conservative Position Sizing When Approaching Target
Once you reach 8% profit, reduce position sizes to protect accumulated gains while working toward 10%. On a $10,000 account with $800 profit, risk only 0.5-1% per trade instead of the maximum allowed. This prevents large drawdowns that could jeopardize your progress toward the $1,000 requirement.
Monitor Real-Time Profit Calculations and Set Alerts
Track your exact profit percentage daily and set alerts when approaching 10%. Calculate precisely what dollar amount you need: $500 for $5,000 accounts, $1,000 for $10,000 accounts, $2,000 for $20,000 accounts. Use trading platform alerts or spreadsheets to avoid miscalculating your progress toward the target.
Avoid Trading During High-Impact News Near Target
When within 1-2% of your 10% target, avoid major news events that could cause large adverse moves. The volatility could either push you well past the target (creating pressure to maintain gains) or cause significant drawdowns. Focus on steady, smaller trades during calm market periods to methodically reach your profit requirement.
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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 The5ers's official website before purchasing a challenge. Updated 2026-03-08.