A two-phase evaluation is the most common funded trader assessment structure, requiring a trader to pass two sequential stages — each with its own profit target and risk limits — before being granted a funded account. Phase 1 (the evaluation phase) carries the higher profit target; Phase 2 (the verification phase) uses a lower target to confirm the performance was repeatable rather than a one-session anomaly.
Standard two-phase structure
A typical two-phase evaluation on a $100,000 account might look like:
- Phase 1: 8% profit target ($8,000), 5% daily loss limit ($5,000), 10% max drawdown ($10,000), no minimum days.
- Phase 2: 5% profit target ($5,000), same daily and drawdown limits, no minimum days.
- Funded: No profit target, same risk limits, payout eligibility from first cycle.
The risk limits are usually identical across both phases. The only structural difference is the profit target — lower in Phase 2 to reflect its purpose as a consistency check rather than a performance hurdle.
Two-phase versus one-step
The two-phase structure takes longer than a one-step evaluation — two separate profit targets must be hit sequentially — but tends to carry a lower combined profit target percentage and the same or lower drawdown limits. It also typically carries a lower evaluation fee than one-step programs of equivalent account size, reflecting the additional time cost imposed on the trader.
Neither structure is inherently superior. The right choice depends on trading style: faster, higher-conviction approaches may prefer a one-step structure to reduce time in assessment; traders with consistent but measured approaches may find the two-phase route lower-risk given the reduced per-phase target.
Rule versioning in two-phase evaluations
In programs with versioned rules, the ruleset governing both phases is locked at the point of Phase 1 purchase. A rule change introduced between Phase 1 and Phase 2 should not apply to an active two-phase evaluation that started before the change. Confirm this explicitly — it is a material protection that not all programs offer.
For a full phase-by-phase playbook — covering the math, the ranked failure modes, position sizing worked examples, and the psychology of both phases — see How to Pass a 2-Step Evaluation.
For the phase-level mechanics, see evaluation phase, verification phase, profit target, and one-step evaluation. FundedProp’s evaluation structure publishes in the rulebook before any evaluation opens for purchase.
FundedProp provides simulated trading evaluations. All accounts are demo accounts; no real capital is traded by participants. This is not investment advice.