One-step vs two-step prop firm challenges
Most prop firms offer both. A one-step challenge has a single profit target; a two-step has two smaller phases. Neither is simply "easier": they trade a lower total target for tighter rules, or the other way round.
The two formats
Two-step challenges usually ask for a larger first target, often 8% to 10%, then a smaller second one around 5%, with the same loss limits in both phases. One-step challenges ask for a single target, often 8% to 10%, but usually with tighter loss limits to make up for the shorter route.
What our directory shows
Across the accounts PropPassCheck tracks:
- Two-step: 17 accounts. Average daily loss limit 4.5%, average maximum loss 9.3%, and 94% use a static maximum loss.
- One-step: 19 accounts. Average daily loss limit 3.6%, average maximum loss 5.4%, and 21% use a static maximum loss.
So the one-step route is shorter, but you usually get less room to be wrong, and more often that room trails behind your best balance.
Which is easier for you
- Choose two-step if your strategy has deep losing streaks or slow, steady returns. The wider loss limits and static drawdown give you more time to recover.
- Choose one-step if your strategy has small drawdowns and you want to get funded faster. The tighter limits matter less when your losses are shallow.
- Look past the challenge. Funded accounts keep the same loss limits, so a tight one-step limit stays with you after you pass.
A worked example
Take a strategy that risks 1% per trade, wins 45% of the time at 2R, and has a worst run of nine losses in its backtest.
- Two-step, 10% static maximum loss: nine losses cost 9%, so the worst run survives with a little room. It needs 10% then 5%, about 15% of profit in total.
- One-step, 6% trailing maximum loss: nine losses cost 9%, which breaks the account. To survive the same run the risk has to drop to about 0.6%, which makes the single 10% target take much longer.
So for this strategy, the "harder" two-step is actually the more realistic route. A strategy with a worst run of four losses would find the opposite.
Cost and time
Two-step challenges take longer, often a few weeks more, and some firms charge less for them. One-step challenges can be quicker, but some come with stricter rules after passing, such as a consistency rule. Most firms no longer set time limits, but check, because a time limit changes the maths of a slow strategy.
Test both with your trades
The only reliable answer comes from your own trades. Upload a backtest to the test centre to see your chance at every one-step and two-step account side by side, or browse the lists of one-step and two-step challenges.
More guides
- Instant funding: what's the catch?
- Futures vs forex prop firms
- Are prop firm challenges worth it?
- How to choose a prop firm
- What happens after you pass a prop firm challenge
- How trailing drawdown works, and why it catches traders out
- Why most traders fail prop firm challenges
- Prop firm consistency rules explained