What is Phase 1?
Phase 1 is the initial stage of a two-step evaluation, typically requiring an 8-10% profit target. It's the harder of the two phases due to the larger target, but uses the same daily loss and drawdown limits as Phase 2. Traders who pass Phase 1 don't yet have a funded account — they progress to Phase 2, which serves as a confirmation stage.
Key takeaways
The first stage of a two-step evaluation.
Phase 1 is the initial stage of a two-step evaluation, typically requiring an 8-10% profit target.
Traders who pass Phase 1 don't yet have a funded account — they progress to Phase 2, which serves as a confirmation stage.
Phase 1 vs. Two-Step Evaluation
Two terms that frequently get conflated. Here's how they actually differ.
Phase 1Challenge Rules · ROOKIE
Two-Step EvaluationChallenge Structure · ROOKIE
The first stage of a two-step evaluation.
A challenge with two phases before funding is granted.
Frequently asked questions
What is Phase 1?
Phase 1 is the initial stage of a two-step evaluation, typically requiring an 8-10% profit target. It's the harder of the two phases due to the larger target, but uses the same daily loss and drawdown limits as Phase 2. Traders who pass Phase 1 don't yet have a funded account — they progress to Phase 2, which serves as a confirmation stage.
Why does Phase 1 matter for prop firm traders?
Phase 1 is a rule that runs through the evaluation phase. Hitting profit targets is necessary but not sufficient — you also have to respect rules like Phase 1 from day one.
How is Phase 1 different from Two-Step Evaluation?
Phase 1 and Two-Step Evaluation are commonly confused. Phase 1: The first stage of a two-step evaluation. Two-Step Evaluation, by contrast: A challenge with two phases before funding is granted.
What should traders watch out for with Phase 1?
It's the harder of the two phases due to the larger target, but uses the same daily loss and drawdown limits as Phase 2. Traders who pass Phase 1 don't yet have a funded account — they progress to Phase 2, which serves as a confirmation stage.