The evaluation period where a trader must meet specific profit targets and follow risk rules to qualify for a funded account.
The challenge phase (also called "evaluation" or "audition") is the process of proving your trading ability to a prop firm before receiving a funded account.
Phase Structures
One-Phase (1-Step) Challenge
- Single evaluation with one profit target
- Typically 6-10% profit target
- No time limit at many firms
- Example: Apex Trader Funding
Two-Phase (2-Step) Challenge
- Phase 1: Higher profit target (e.g., 8-10%)
- Phase 2 (Verification): Lower profit target (e.g., 5%)
- Both phases must respect drawdown rules
- Example: FTMO, MyFundedFX
Instant Funding
- No challenge required
- Higher fees, lower starting split
- Immediate funded account
Tips for Passing
- Don't rush: There's usually no time limit, so trade only when your setup is present
- Size conservatively: Use 0.5-1% risk per trade to protect your drawdown
- Track your rules: Use PropTally to monitor drawdown proximity in real time