The 1-Step and 2-Step evaluations each have their relative strengths and weaknesses.
It is important to choose carefully, as you cannot change your plan type after purchase. Additionally, if you pass the Breakout Evaluation and receive a Breakout Account, the account size and risk rules will be the same as in your Breakout Evaluation.
The main differences are as follows:
Number of Steps: The 1-Step has 1 trading stage, whereas the 2-Step has 2 trading stages. This means you can technically get funded in 1 trade on the 1-Step, but the 2-Step will require you to make 5% in Step 1 and 10% in Step 2. You will be issued a new account between steps and your trades will not carry over.
Account Goal: The 1-Step account goal is 10%, whereas the 2-Step account goal is 5% (Step 1) and 10% (Step 2). Accordingly, the 2-Step has a net higher account goal to get funded than the 1-Step.
Drawdown Amount: The 2-Step has wider drawdown parameters than the 1-Step. The 2-Step maximum daily loss is 5% and the maximum drawdown is 8%. The 1-Step maximum daily loss is 4% and the maximum drawdown is 6%.
Drawdown Type: All drawdowns for both the 1-Step and the 2-Step are balance-based. However, for maximum drawdown specifically, the 2-Step has a trailing drawdown whereas the 1-Step has a static drawdown. The maximum daily loss type is the same i.e. 1700 EST (UTC -5) balance - 4% for 1-Step and -5% for 2-Step.
Summary: The 1-Step is easier to pass given the lower account goal and given that there is only one stage, but some traders may find it more difficult to stay within the risk rules given they are tighter. It is also a simpler plan as the maximum drawdown is static and never changes. The 2-Step is more difficult to pass, but once funded, traders enjoy the benefits of a wider maximum drawdown and maximum daily loss. Generally, we’ve found that the 1-Step is preferred by more aggressive traders with tighter risk management, whereas the 2-Step is preferred by more conservative traders with more of a swing trading style and wider stops.
For more information, please refer to our specific drawdown rule articles below: