1-Step vs. 2-Step Prop Challenges: The Mathematical Truth (2026 Guide)

1. The 1-Step Hidden Killer

Most 1-Step accounts use Relative Trailing Drawdown.

• Scenario: You have a $100k account. Max loss is $6k (Account closes at $94k).
• You Profit: You make $3k profit. Balance is $103k.
• The Trap: Your Max Loss level *trails* up by $3k. It is now $97k.
• Result: You still only have a $6k buffer, even though you made profit. You never secure your gains until you withdraw.

2. The 2-Step Stability

Standard 2-Step firms (like The5ers or FTMO) usually use Static or Balance-Based drawdown.

• Scenario: $100k account. Max loss is $10k (Close at $90k).
• You Profit: You make $5k. Balance is $105k.
• The Benefit: Your Max Loss level often stays at $90k.
• Result: You now have a $15k buffer ($10k original + $5k profit). This allows you to trade with less stress and compound growth.

3. Which Pass Rate is Higher?

Surprisingly, 2-Step challenges often have higher long-term retention rates. While it's easier to *get* a 1-Step account, the strict trailing rules cause most traders to blow the account within the first month of funding.

Recommendation: Stability Wins

If you are a gambler or use HFT bots, 1-Step is your only option. But if you are a serious career trader:

• Choose 2-Step for the wider breathing room and static drawdown.
• Check The5ers: Their "High Stakes" model is a 2-step program that rewards consistency over speed, giving you a real chance to scale to $4M.

Filter by Drawdown Type

Don't get tricked by "Instant Funding" ads.

Use our Prop Firm Finder to filter firms specifically by "Static Drawdown" vs "Trailing Drawdown" before you buy.