1-Step vs 2-Step prop firm evaluations
9 min read
Evaluations come in one phase or two. The difference is usually described as though the two-phase version is simply longer, which misses what is actually going on.
It is about how a firm spreads its confidence across time, and what it gives you in exchange for the extra patience.
A 1-Step evaluation
One target, one set of drawdown limits, one outcome. Reach the profit target without touching the floor and you are funded. It is the simplest structure, and it is the one most traders should start with, because there is nothing about it to misunderstand.
A 2-Step evaluation
A two-phase evaluation splits the profit target into rungs. You clear the first, then continue toward the second. The important detail — and the one that is most often described wrongly — is what the rungs are measured from.
The second thing that surprises traders is what clearing a rung does not change. It does not reset your balance, close your positions, or hand you a fresh drawdown allowance. Everything keeps running — the gain stays unrealised, positions stay open, and the drawdown floor stays exactly where it was.
Only the profit target moves. That is the whole of what advancing a rung means. A trader expecting a clean slate at phase two is expecting a product nobody sells, because a reset allowance per rung would make the two-phase evaluation easier than the one-phase version rather than harder.
The anchor matters more than the step count
If you compare the tiers here, the step count is not the variable doing the most work. The drawdown anchor is. Every 1-Step tier uses a static floor; every 2-Step tier uses a trailing one.
A static floor sits below starting capital and never moves. A trailing floor rises to every new equity peak and never falls back — so a trader who runs up profit and gives part of it back can breach while still ahead overall. That difference outweighs the step count by a wide margin.
| Tier | Ladder | Profit target | Max drawdown | Anchor |
|---|---|---|---|---|
| Starter 1-Step | Single target | 9% | 6% | Static |
| Standard 1-Step | Single target | 10% | 8% | Static |
| Pro 1-Step | Single target | 10% | 10% | Static |
| Starter 2-Step | 5% → 9% | 9% | 8% | Trailing |
| Standard 2-Step | 5% → 10% | 10% | 10% | Trailing |
| Pro 2-Step | 5% → 10% | 10% | 12% | Trailing |
Read across a row, not down a column. A 2-Step tier pairs a larger drawdown allowance with a trailing anchor that makes the allowance harder to use. The extra room is real. So is the condition attached to it.
Which to choose
- A 1-Step tier suits a strategy with steady, moderate returns — the static floor never chases you, so a drawdown after a good run cannot end the account while you are in profit.
- A 2-Step tier suits a strategy that can hold onto gains once it has them, because the trailing floor locks in your peak and then holds you to it.
- If you are unsure, the static anchor is the more forgiving of the two, whatever the headline percentage says.
Common questions
- What is the difference between a 1-Step and a 2-Step evaluation?
- A 1-Step evaluation has a single profit target. A 2-Step evaluation splits the target into rungs that must be cleared in order. Here the more consequential difference is the drawdown anchor: 1-Step tiers use a static floor and 2-Step tiers use a trailing one.
- Are 2-Step profit targets cumulative or separate?
- Cumulative. Both rungs are measured above starting capital, so the second is a total rather than a further gain on top of the first. The progress still needed after clearing rung one is the difference between the two, not the whole of the second number.
- Does clearing the first step reset my account?
- No. Balance, open positions, the high-water mark and the drawdown allowance all continue unchanged. Only the profit target moves. A reset allowance at each rung would make a two-phase evaluation easier than a single-phase one.
- Is a 2-Step evaluation harder than a 1-Step?
- Generally yes, though not because of the extra rung. The 2-Step tiers carry trailing drawdown anchors, which can breach an account that is still profitable overall after giving back part of a run. The larger drawdown allowance offsets some but not all of that.
- Which evaluation should a first-time trader choose?
- A 1-Step tier with a static anchor is the more forgiving structure. The floor never rises behind you, so a drawdown following a profitable run cannot end the account while you remain ahead of where you started.