1-Step vs 2-Step vs Instant Funding: Which Prop Firm Challenge Fits You?
2-Step gives the most room over two phases, 1-Step is one phase with tighter limits, Instant skips the evaluation. Compare them in dollars.
OctoFunded Trading DeskUpdated ยท 7 min read
The difference between 1-Step, 2-Step and instant funding is how many evaluation phases you trade before reaching a funded account, and how tight the rules are in exchange. More phases usually come with wider loss limits. Fewer phases come with tighter ones, and instant funding has the tightest.
None of them is easier in general. Each one suits a different equity curve, and this guide shows all three on the same $100K simulated account so you can see which one fits yours.
Key takeaways
- 2-Step: two profit targets, the widest loss limits and, at OctoFunded, a static floor that never moves.
- 1-Step: one profit target, tighter limits, a trailing drawdown and a 50% best day cap at OctoFunded.
- Instant Funded: no evaluation phase, the tightest limits, a 20% best day cap and no fee refund.
- Fit beats speed: the right program is the one where your normal losing day and losing streak fit inside the limits with room to spare.
What is the difference between 1-Step, 2-Step and instant funding?
The difference is the path to a funded account. A 2-Step has two evaluation phases, a 1-Step has one, and instant funding has none.
2-Step challenge. You reach a profit target in phase 1, then a smaller target in phase 2, while staying inside the daily loss limit and max drawdown in both. Two phases take longer, but firms usually pair them with more room to lose.
1-Step challenge. You reach one profit target in a single phase. To balance the shorter path, firms often tighten the loss limits, use a trailing drawdown or add a consistency rule.
Instant funding. You skip the evaluation and trade a funded account on simulated capital from the start. Because there is no test phase, the risk rules on the account itself tend to be the tightest of the three. The rules you would have proved in a challenge are enforced on the funded account instead.
How do the OctoFunded programs compare rule by rule?
The OctoFunded programs differ mainly in the number of phases, the loss limits, the drawdown type and the best day rule. Here they are side by side.
| Rule | 2-Step | 1-Step | Instant Funded |
|---|---|---|---|
| Evaluation phases | 2 | 1 | None |
| Profit target | 10% in phase 1, 5% in phase 2 | 10% | No evaluation target |
| Daily loss limit | 5% | 4% | 3% |
| Max drawdown | 10% static | 8% trailing | 6% trailing |
| Best day rule | See the program rules | 50% of total profit | 20% of total profit |
| Fee refund | With the first payout | With the first payout | None |
Some things are the same across all three programs:
- Account sizes from $10K to $100K.
- A one-time fee and no time limit.
- Expert Advisors allowed, with TradingView charts in OctoFunded Web.
- Payouts: an 80% profit split from the first payout, a 14-day cycle and USDT or USDC paid on-chain with a public transaction hash, subject to the program rules.
The full OctoFunded program rules explain exactly how each limit is measured.
What does each program mean on a $100K account?
On a $100K simulated account, the percentages turn into these dollar figures:
| Item on $100,000 | 2-Step ($) | 1-Step ($) | Instant Funded ($) |
|---|---|---|---|
| Profit to reach | $10,000, then $5,000 | $10,000 | None |
| Daily loss limit (as a share of $100,000) | $5,000 | $4,000 | $3,000 |
| Starting floor | $90,000 | $92,000 | $94,000 |
| Does the floor move? | Never | Rises with new highs | Rises with new highs |
| Largest allowed day at $10,000 total profit | See the program rules | $5,000 | $2,000 |
The last row comes straight from the best day rule: 50% of $10,000 is $5,000, and 20% of $10,000 is $2,000.
Worked example: one rough day, three programs. A trader is up $4,000, so the account is at $104,000. Then comes a bad session: five losing trades of $700 each, a $3,500 loss for the day.
- 2-Step: the daily limit is 5%, which is at least $5,000. A $3,500 loss leaves $1,500 or more of daily room. The static floor stays at $90,000, and the account ends the day at $100,500, which is $10,500 above the floor. The challenge continues.
- 1-Step: the daily limit is 4%, which is at least $4,000. A $3,500 loss leaves about $500 of room. For the drawdown, take as an example a floor that trails $8,000 below the highest balance: after the $104,000 peak, it sits at $96,000. At $100,500 the account is $4,500 above it. The challenge continues, but one more losing trade that day would have ended it.
- Instant Funded: the daily limit is 3%. Even measured from $104,000, that is $3,120. A $3,500 loss breaks it, and the account fails.
Same trades, three outcomes. The $700 risk per trade fits the 2-Step, barely fits the 1-Step and does not fit Instant Funded.
To trade the same day on Instant Funded, the risk per trade would need to be much smaller. At $400 per trade, five losses cost $2,000, which leaves $1,000 of room under a $3,000 limit. The details of how the daily loss limit is calculated decide how close to the edge that is.
Which program fits your trading style?
The program that fits is the one whose rules match how your equity curve already behaves, rather than one you have to reshape your trading for.
The 2-Step tends to fit you if:
- You swing trade with wide stops and expect deep pullbacks before a target is reached.
- Your profits come from a few large winners, with flat or losing stretches between them.
- You want a fixed floor that profit pushes further away. See static vs trailing drawdown for why that matters.
The 1-Step tends to fit you if:
- Your daily results are fairly even and your losing days are rarely larger than 2%.
- You bank gains often and rarely give back much of a winning run, which suits a trailing floor.
- No single day usually makes up more than half of your profit.
Instant Funded tends to fit you if:
- You already trade a tested process with small daily swings and low risk per trade.
- Your profit is spread across many days of similar size, so a 20% best day cap is not a problem.
- You prefer to skip the evaluation and accept tighter limits and no fee refund in exchange.
How do you choose a program without guessing?
- Pull your own history. Take your last 3 months of trades from a demo or personal account and express each day as a percentage of the account.
- Find your worst day. Compare it with the daily limits of 5%, 4% and 3%. Leave a margin for slippage, not just a fit.
- Find your worst losing streak. Measure it from a peak, not from the start, and compare it with 10% static, 8% trailing and 6% trailing.
- Check your best day share. Divide your best day by your total profit for the period. Compare the result with the 50% and 20% caps.
- Weigh the fee refund. On the 2-Step and 1-Step the fee is refunded with the first payout. On Instant Funded it is not.
- Remember there is no deadline. With no time limit, two phases on the 2-Step are a question of patience, not of speed.
FAQ
Is a 1-Step challenge harder than a 2-Step?
It has one phase instead of two, but tighter limits. At OctoFunded the 1-Step has a 4% daily loss limit and an 8% trailing drawdown, against 5% and 10% static on the 2-Step.
What is instant funding?
Instant funding starts you on a funded account with simulated capital without an evaluation phase. The trade-off is tighter rules: at OctoFunded, a 3% daily loss limit, a 6% trailing drawdown and a 20% best day cap.
Do I get the challenge fee back?
On the OctoFunded 2-Step and 1-Step, the fee is refunded with the first payout. Instant Funded has no fee refund.
Is there a time limit on any OctoFunded program?
No. None of the programs has a time limit, so you can trade at your own pace instead of forcing trades before a deadline.
How do OctoFunded payouts work?
Payouts use an 80% profit split from the first payout, on a 14-day cycle, paid in USDT or USDC on-chain with a public transaction hash, subject to the program rules.
Match the program to your worst week
Choose the rule set your bad days fit inside, then let the good days take care of themselves. OctoFunded runs the 2-Step, 1-Step and Instant Funded on simulated capital, with account sizes from $10K to $100K, a one-time fee and no time limit.
