Two-Step Challenge

Detailed Explanation

Two-step challenges begin with Phase 1 (typically requiring an 8%–10% profit target) followed by Phase 2 / Verification (typically requiring a 4%–5% profit target). Both phases share the same drawdown limits. The two-phase structure is designed to filter out lucky one-time results by requiring traders to demonstrate repeatable performance. Two-step challenges are the most common evaluation format in the industry, used by firms like FTMO, FundedNext, and E8 Markets.