What are the 2-Step Challenge rules?
Funded Daily 2-Step Challenge program, including profit targets, drawdown limits, consistency requirements, payout conditions, profit split, and other key parameters.
Parameter | Value |
Step 1 Target | 10% |
Step 2 Target | 5% |
Maximum Drawdown | 10% — static |
Daily Loss Limit | 5% |
Consistency Rule | 0% during evaluation, 25% once funded |
Profit Cap (per payout cycle) | 5% of account size |
Minimum Trading Days | 5 per step |
Time Limit | None |
Evaluation Leverage | 1:50 |
Funded Leverage | 1:30 |
EAs | Not allowed |
News Trading | Allowed |
Profit Split | 80% → 90% scaling |
Withdrawal Period | Every 14 days |
Maximum Funding | $100,000 per trader (combined across all Funded Daily programs) |
Scaling | Automatic once funded — see scaling article |
Platform | TradeLocker, Platform 5 |
You must pass Step 1 and Step 2, in order, before your account moves to funded status. Traders from Malaysia and Vietnam are subject to a $50,000 combined funding cap. These rules apply together with the General Rules and Platform Rules.
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Drawdown Rules
Maximum Drawdown — 10% Static
Your account equity must not fall more than 10% below the Initial Account Balance.
Maximum Drawdown is static, meaning the drawdown level does not move with your balance or profits.
Example: On a $5,000 account, the maximum drawdown is $500, meaning your equity must not fall to $4,500 or below.
Daily Drawdown — 5%
The Daily Drawdown limit is 5% of the Initial Account Balance.
The Daily Drawdown is recalculated every day at 5:00 PM EST.
The daily limit is based on the higher of your balance or equity at the daily reset.
The Daily Drawdown level resets every day at 5:00 PM EST.
Example: On a $5,000 account, the daily drawdown allowance is $250. If your balance/equity at the daily reset is $5,200, your equity must remain above $4,950 during the following trading day.
Important: If your equity reaches or falls below the applicable Maximum Drawdown or Daily Drawdown level, this results in a rule breach.
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Profit Consistency Rule — 25%
There is no Profit Consistency Rule during Step 1 or Step 2 of the Evaluation. You are free to trade according to your strategy as long as you meet the applicable 10% Step 1 profit target or 5% Step 2 profit target and follow the applicable trading rules.
Once your account is Funded, a 25% Profit Consistency Rule applies at the payout stage. No single trading day may account for 25% or more of your total profit for the current payout period.
If the requirement is not met, you will need to continue trading until your total profit increases enough to satisfy the 25% rule before requesting a payout.
How the Profit Consistency 25% Rule Works
Your highest-profit trading day ÷ total profit = Consistency Percentage
To be eligible for a payout, the result must be 25% or less.
Example:
Highest-profit trading day: $250
Required total profit: $1,000
$250 ÷ $1,000 = 25%
Result: Eligible, assuming all other payout requirements are met.
If your highest-profit day is $500, you would need at least $2,000 total profit:
$500 ÷ $2,000 = 25%
Result: Eligible
Important: The 25% Profit Consistency Rule applies only during the Funded Stage and does not apply during Step 1 or Step 2 of the Evaluation.
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Profit Split — 80% → 90%
Traders receive an 80% profit split once funded.
Eligible traders can increase their profit split to 90% through Funded Daily’s applicable scaling conditions.
Important: The profit split applies to eligible profits and is subject to all applicable payout and account rules.
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Profit Cap — 5% Per Payout Cycle
The maximum eligible profit for each payout cycle is 5% of the initial account balance.
Any profit above the 5% cap is not eligible for payout during that payout cycle.
The account remains active, and profits above the cap do not automatically cause a breach.
Example: On a $10,000 account, the maximum eligible profit per payout cycle is $500.
Important: The 5% Profit Cap applies to each payout cycle and is subject to all other applicable payout rules.
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Payout Schedule — Every 14 Days
Traders can request a payout every 14 days once they meet all applicable payout requirements.
Payouts are processed based on the trader’s eligible profits after applying the Profit Cap and Profit Consistency Rule.
All applicable account and payout rules must be satisfied before a payout can be approved.
Important: The 14-day payout cycle applies once the account is Funded.
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Is Scalping Allowed?
Scalping is allowed on Funded Daily accounts. However, trades closed in under 2 minutes are not eligible for payout.
How It Works
Yes, scalping is allowed on Funded Daily accounts. To be eligible for payout, a trade must be held for at least 2 minutes.
Trades that are opened and closed in less than 2 minutes will have their profit deducted from your eligible payout profit. These trades do not count toward your payout amount.
This is considered a soft breach. A single soft breach does not automatically close your account, but repeated soft breaches are tracked and may result in account closure in accordance with the applicable rules.
All other trades remain subject to the General Rules, Platform Rules, Profit Consistency Rule, and other applicable account requirements.
Example: If you make $100 profit on a trade that is closed within 2 minutes, that $100 will be deducted from your eligible payout profit. The trade itself does not contribute toward the amount you can withdraw.
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