What is Phase 2?
Phase 2 is the verification stage of a two-step evaluation. The profit target is smaller than Phase 1 (typically 4-5%) but the same risk rules apply. The phase exists to confirm that the trader's Phase 1 performance was repeatable rather than luck. Traders who clear Phase 2 receive a funded account, often within 1-3 business days of completion.
Key takeaways
The verification stage of a two-step evaluation.
Phase 2 is the verification stage of a two-step evaluation.
The profit target is smaller than Phase 1 (typically 4-5%) but the same risk rules apply.
The phase exists to confirm that the trader's Phase 1 performance was repeatable rather than luck.
Phase 2 vs. Two-Step Evaluation
Two terms that frequently get conflated. Here's how they actually differ.
Phase 2Challenge Rules · ROOKIE
Two-Step EvaluationChallenge Structure · ROOKIE
The verification stage of a two-step evaluation.
A challenge with two phases before funding is granted.
Frequently asked questions
What is Phase 2?
Phase 2 is the verification stage of a two-step evaluation. The profit target is smaller than Phase 1 (typically 4-5%) but the same risk rules apply. The phase exists to confirm that the trader's Phase 1 performance was repeatable rather than luck.
Why does Phase 2 matter for prop firm traders?
Phase 2 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 2 from day one.
How is Phase 2 different from Two-Step Evaluation?
Phase 2 and Two-Step Evaluation are commonly confused. Phase 2: The verification 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 2?
The phase exists to confirm that the trader's Phase 1 performance was repeatable rather than luck. Traders who clear Phase 2 receive a funded account, often within 1-3 business days of completion.