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Profit Target Rule

Each reward cycle is tied to a specific profit target, calculated from your original starting balance.

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Written by Support
Updated yesterday

This rule applies to SIM Instant Funded accounts only.
At PIP Traders Funding LLC, each reward cycle is tied to a specific profit target, calculated from your original starting balance. This ensures fairness, consistency, and accountability as you progress through your journey as a Certified PIP Trader.


✅ What is the Profit Target?

The Profit Target is the minimum percentage of profit you must generate — based on your original initial balance — in order to become eligible to request a reward.

The required target decreases over time as you advance:

  • First reward: Minimum of 5% profit

  • Second reward: Minimum of 4% profit

  • Third reward and beyond: Minimum of 3% profit

These percentages are always calculated from your original starting balance, regardless of account growth or any buffer remaining from a previous cycle.


📊 Example: $200,000 Account

✅ First Reward:

  • You generate 5% profit, reaching $210,000

  • You are paid 3% = $6,000

  • The remaining 2% ($4,000) becomes your Locked Buffer

➡️ After payout, your account remains at $204,000


🔁 Second Reward Cycle:

  • Profit target: 4% of $200,000 = $8,000

  • You must grow the account from $204,000 to $212,000 to qualify:

    • $204,000 (post-reward balance)

      • $8,000 (target)

    • = $212,000 total

  • Let’s say you reach $213,000

    • You are paid 3% = $6,000

    • The remaining $3,000 becomes a new buffer

➡️ After second reward payout, your account remains at $207,000


🔁 Third Reward Cycle and Beyond:

  • Profit target: 3% of $200,000 = $6,000

  • You must grow the account from $207,000 to $213,000:

    • $207,000 (post-second reward balance)

      • $6,000 (new target)

    • = $213,000 total

📌 Again, only 3% is paid = $6,000
📌 Any additional profit remains as buffer and is used to secure your new drawdown structure
📌 The profit target is always recalculated from your original $200,000 balance


🔁 What happens after each reward?

Each time you receive a reward:

  • A new reward cycle begins

  • Your profit target resets based on your original starting balance

  • Any excess buffer from the previous cycle remains in the account

  • The new profit target must be earned from scratch — buffers do not count toward the next cycle's target


🧠 Why do we use profit targets?

Profit targets help:

  • Set clear, transparent goals

  • Encourage sustainable and structured growth

  • Simulate professional capital management expectations

  • Prevent dependency on one-time gains or past performance


❗What happens if you meet the days but not the profit target?

If you meet the required number of profitable trading days but fall short of the profit target:

  • Your request will be denied

  • You may continue trading within the same cycle to reach the target, as long as no rule is breached

  • You do not need to start over, but you must reach the full required profit from your original balance


🔍 Tips for Hitting Your Profit Target

  • Focus on consistent growth, not oversized trades

  • Use your trader dashboard to track your real-time progress

  • Keep a personal log or journal to monitor performance

  • Break your target into daily or weekly milestones

  • Avoid relying on early gains — each cycle must be earned independently


📍 Bottom Line

The Profit Target Rule ensures that every reward is earned through clear, repeatable performance. By tying each goal to your original starting balance and separating it from prior buffers, we help you develop the consistency and discipline required to succeed in a professional capital environment.

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