CHOOSING A PROP FIRM

1-Step vs 2-Step Prop Firm Challenges: Which Should You Choose?

Fewer phases means faster funding — and usually tighter rules. Here is how the trade-off works.

By the QATS team3 min read6 sections

Most prop firms now sell both 1-step and 2-step evaluations. The difference is not just the number of phases: the targets, drawdown and price change with it.

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How 2-step evaluations work

A typical 2-step challenge asks for around 8–10% in phase one and 4–5% in phase two, usually with a static maximum loss of about 10% and a 4–5% daily limit. Two phases double the time to funding but each target is lower and the drawdown wider.

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How 1-step evaluations work

A 1-step challenge asks for one target, usually around 10%, and often compensates with a tighter or trailing drawdown. QATS evaluations are 1-step: a 10% profit target, a 4% daily loss limit, a 6% end-of-day trailing maximum loss that stops trailing at the starting balance, a 40% consistency rule and 2 minimum trading days.

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Side-by-side

1-step2-step
Profit target~8–10% once~8–10%, then ~4–5%
Max lossOften 4–6%, sometimes trailingOften ~8–10% static
Daily loss~3–4%~4–5%
Time to fundingFasterSlower
PriceOften a little higherOften a little lower
Typical industry ranges in 2026 — always check the specific plan
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Cost per attempt and time to funding

Two-step evaluations are often a little cheaper per attempt, but each attempt can fail in either phase, and the second phase adds days. One-step evaluations cost about the same or slightly more but reach the funded stage sooner — which also means the first payout comes sooner.

If you expect more than one attempt, check the reset price and whether a subscription includes resets: across several attempts the reset policy usually matters more than the base price.

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How the drawdown style interacts with the number of phases

Many 1-step programs use a trailing maximum loss to balance the single target. Intraday trailing is the strictest form; end-of-day trailing is much easier for traders who hold positions for hours. A 2-step program with a static 10% limit gives the most room per trade but asks you to prove yourself twice.

QATS keeps one phase and uses end-of-day trailing that stops at the starting balance: on a $10K Crypto account, once you have closed a day $600 above the start, the floor locks at $10,000 and behaves like a static limit from then on.

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Which suits you

  • Scalpers and day traders with tight stops: 1-step, because the tighter drawdown matters less and funding comes sooner.
  • Swing traders with wide stops: 2-step or a 1-step with EOD trailing, so open swings do not raise the floor.
  • Algorithmic traders: whichever model your backtest survives — replay it against the exact rules before you buy.
FAQ2 questions

Frequently asked questions

01Is a 1-step prop challenge easier?

It is faster, not necessarily easier. One target replaces two, but drawdown limits are often tighter.

02Does QATS offer 2-step challenges?

The current QATS Crypto and TradFi evaluations are 1-step with an end-of-day trailing maximum loss that stops at the starting balance.

Written by the QATS team

The team behind QATS Prop. Every QATS figure comes from the published plan lineup; spotted something outdated? Email support@qats.us.

Published Updated

Educational content, not investment advice. QATS evaluations and initial funded accounts are simulated; payouts depend on eligibility, verification and the applicable agreement.