Side by side
| Two-step | One-step | |
|---|---|---|
| Phases | Two | One |
| Targets | About 10 percent, then 5 percent | About 10 percent |
| Daily loss | 5 percent | 3 to 5 percent |
| Maximum loss | 10 to 12 percent, static | 6 to 10 percent, often trailing |
| Fee | Lower | Higher |
| Time to funded | Longer | Shorter |
| Suits | Traders with wider swings who can grind | Steady low-variance methods |
Why the drawdown differs
Two phases filter twice, so the firm can afford generous limits. A single phase filters once, so the firm tightens the limits to keep its pass rate where it wants it, most often by trailing the drawdown from the equity peak. The difficulty is roughly conserved; it is moved from the number of hurdles to the height of the hurdle.
Choosing
- If your method takes a few big trades a month with deep pullbacks in open profit, a trailing drawdown will catch you; choose two-step with static limits.
- If your method takes many small trades with steady equity, one-step saves time and the tighter limits are not binding.
- If you are unsure, two-step is the forgiving option; the second phase is easier than the first because the target halves and the limits do not.
The same rules for both
Whatever the shape, the daily loss limit is what ends most attempts, and small fixed risk per trade is what avoids it. The shape decides how the maximum loss is measured; sizing decides whether you reach it.
Trading forex, CFDs and other leveraged products carries a high risk of losing money. This guide is general education, not advice.