Securing funding from a prop firm is a game-changer for traders who want to scale their capital while minimizing personal risk. However, passing the One Step Challenge Prop Firm or a 2 Step Evaluation can be a daunting task. Many traders fail due to poor risk management, emotional decision-making, or lack of a structured approach.
This article provides proven strategies to pass a prop firm challenge on the first attempt, helping traders avoid common mistakes and increase their chances of getting funded.
Understanding Prop Firm Challenges
What Is a One Step Challenge Prop Firm?
A One Step Challenge Prop Firm requires traders to pass a single evaluation phase before receiving a funded account. The challenge typically involves:
- Reaching a set profit target within a given timeframe
- Staying within the daily and overall drawdown limits
- Following strict risk management rules
This type of evaluation is attractive because traders can get funded quickly, but it requires consistent profitability and risk control.
What Is a 2 Step Evaluation?
A 2 Step Evaluation requires traders to complete two phases before qualifying for funding. The first step often has a higher profit target, while the second step focuses on consistency and discipline.
This model is designed to filter out high-risk traders, ensuring that only those with long-term potential receive funding. It takes longer than a One Step Challenge, but it provides traders with a structured approach to proving their skills.
Best Strategies to Pass a Prop Firm Challenge on the First Attempt
1. Master Risk Management Before Entering the Challenge
The primary reason traders fail prop firm challenges is poor risk management. A solid risk strategy protects capital while allowing traders to meet profit targets efficiently.
Risk Management Tips:
- Risk only 1-2% per trade to avoid hitting the drawdown limit.
- Use stop-loss orders to prevent excessive losses.
- Set a daily loss limit to prevent emotional trading.
- Trade with a 1:2 or higher risk-to-reward ratio to stay profitable over time.
Risk management is especially important in a One Step Challenge Prop Firm, where traders have limited room for mistakes.
2. Follow a Profitable and Proven Trading Strategy
Traders should not enter a prop firm challenge without a tested and profitable strategy. A well-defined approach helps maintain consistency and avoid unnecessary risks.
Top Strategies for Prop Firm Evaluations:
- Scalping and Day Trading – Quick trades with small profits, best for volatile sessions.
- Swing Trading – Holding positions for several days to capture larger moves.
- Breakout Trading – Entering when price breaks key levels of support or resistance.
- Trend Following – Riding market momentum to maximize profits.
Before starting an evaluation, traders should backtest and demo trade their strategy to ensure it works in real market conditions.
3. Trade Only the Best Setups
Many traders fail their 2 Step Evaluation or One Step Challenge by overtrading or taking low-quality trades. Being selective increases the chances of hitting profit targets without unnecessary risks.
How to Identify High-Quality Trades:
- Wait for clear technical confirmations before entering a trade.
- Trade during high-liquidity sessions, such as the London or New York open.
- Avoid trading during major news events unless it aligns with the strategy.
- Stick to familiar currency pairs or assets to avoid unexpected risks.
Fewer, high-quality trades lead to better win rates and lower drawdowns, increasing the chances of passing on the first attempt.
4. Control Trading Psychology and Emotions
Emotions like fear, greed, and frustration can cause traders to make impulsive decisions that violate risk management rules. A disciplined mindset is key to passing any prop firm challenge.
Psychological Tips for Success:
- Follow a structured routine and avoid emotional trading.
- Accept small losses as part of the process.
- Stay patient and avoid forcing trades to hit profit targets.
- Take breaks after consecutive wins or losses to stay focused.
Successful traders in a One Step Challenge Prop Firm or a 2 Step Evaluation remain calm and stick to their strategy even under pressure.
5. Optimize Trade Execution and Timing
Efficient trade execution is essential for meeting profit targets without excessive risk.
How to Improve Trade Execution:
- Use limit orders instead of market orders to secure better entries.
- Trade during high-volume sessions for tighter spreads and better fills.
- Avoid trading during spread widening periods, such as session transitions.
- Monitor slippage and order execution speed to prevent unexpected losses.
Precise execution can make a difference in passing or failing a prop firm challenge.
6. Adapt to Market Conditions
Markets constantly change, and traders must adapt to different conditions to stay profitable.
How to Adjust to Market Conditions:
- Identify whether the market is trending or ranging before trading.
- Reduce position sizes during high volatility to minimize risk.
- Use a flexible approach that includes both breakout and pullback trades.
- Avoid trading when market conditions do not align with the strategy.
Adapting to different market conditions ensures consistent performance throughout the evaluation.
7. Manage Drawdowns Carefully
A trader’s ability to manage drawdowns can determine whether they pass or fail the challenge.
Best Practices for Managing Drawdowns:
- Reduce trade sizes after consecutive losses.
- Step away from trading if the daily loss limit is reached.
- Focus on small, high-probability trades to rebuild confidence.
- Analyze past trades to identify and correct mistakes.
In a 2 Step Evaluation, traders must show consistency, making drawdown management even more important.
8. Leverage Funding Pips to Scale Growth
Traders who pass a prop firm challenge can benefit from Funding Pips, a system designed to help traders scale their capital responsibly.
How Funding Pips Helps in a Prop Firm Challenge:
- Encourages proper risk management to avoid account breaches.
- Helps traders focus on long-term consistency instead of short-term gains.
- Aligns traders with prop firm expectations, increasing the likelihood of securing funding.
Using Funding Pips principles in an evaluation improves a trader’s overall performance and increases long-term profitability.
Conclusion
Passing a prop firm challenge on the first attempt requires discipline, strategy, and risk management. Whether attempting a One Step Challenge Prop Firm or a 2 Step Evaluation, traders must focus on capital protection, high-quality trades, psychological control, and market adaptability.
By implementing these strategies, traders can successfully pass the evaluation, secure a funded account, and take advantage of Funding Pips to scale their trading career.
