Profit Target Account %

What is Profit Target Account %?

Profit Target Account % measures the percentage of your trading account you would gain if your profit target is hit. This metric helps you understand the potential reward of a trade relative to your total capital.

Formula

For Long Positions:
Profit Target Account % = ((Profit Target Price - Open Price) × (Quantity / 2) / Account Value) × 100

For Short Positions:
Profit Target Account % = ((Open Price - Profit Target Price) × (Quantity / 2) / Account Value) × 100

Why It Matters

This metric helps you:
1. Evaluate Risk/Reward: Compare with Stop Loss Account % to see your true R:R ratio in account terms
2. Set Realistic Goals: Understand if your targets are meaningful relative to account size
3. Position Size Properly: Adjust quantity to achieve desired account impact

Risk/Reward Analysis

Example Calculation

• Account Value: $50,000
• Stock: TSLA at $200 (open price)
• Profit Target: $220
• Quantity: 50 shares

Profit Target Account % = (($220 - $200) × (50 / 2) / $50,000) × 100
= ($20 × 25 / $50,000) × 100
= ($500 / $50,000) × 100
= 1.0%

This means hitting your profit target would grow your account by 1.0%.

Combined with Stop Loss Account %

If the same trade has:
- Stop Loss Account %: 0.5%
- Profit Target Account %: 1.0%

Your account-level Risk/Reward is 2:1 - you stand to gain twice what you risk.

TradesViz Advantage

TradesViz automatically calculates Profit Target Account % for every trade with a defined profit target, enabling:
- Quick R:R assessment at the account level
- Filtering for high-reward setups
- Position sizing optimization

Important: Account Value Setup

For this metric to work correctly, you need to have your account value properly tracked. Make sure to:
1. Add your initial deposit when setting up your account
2. Record deposits and withdrawals as they occur
3. Keep balances updated for accurate account value tracking

Learn more: How to add deposits, withdrawals and balances