How to Pass Phase 2 of a Prop Firm Challenge: A Risk Plan to Protect the Pass
Phase 2 halves the target but keeps every loss limit. The Trading Desk shows why that changes the risk math, and lays out a Phase 2 risk plan by account size with real rules and prices.
OctoFunded Trading DeskUpdated ยท 9 min read
How to pass phase 2 prop firm challenges comes down to one shift in thinking: on the OctoFunded 2-Step, Phase 2 asks for only 5% profit but keeps exactly the same loss limits (5% daily, 10% static), so your job is no longer to build a result, it is to protect the pass you already earned. This guide shows how the Phase 2 math differs from Phase 1 and gives you a risk plan sized for each account.
If you are still in Phase 1, start with how to pass a prop firm challenge. If you are deciding whether a 2-Step is the right program at all, see the two-step prop firm challenge guide. This article starts the moment Phase 2 opens.
What are the Phase 2 rules on a 2-Step challenge?
Phase 2 keeps every loss rule from Phase 1 and halves the target. Here are the rules converted into dollars for each size.
| Account | Phase 2 target (5%) | Max daily loss (5%) | Max loss (10%) | Floor | Min days |
|---|---|---|---|---|---|
| $10,000 | $500 | $500 | $1,000 | $9,000 | 3 |
| $25,000 | $1,250 | $1,250 | $2,500 | $22,500 | 3 |
| $50,000 | $2,500 | $2,500 | $5,000 | $45,000 | 3 |
| $100,000 | $5,000 | $5,000 | $10,000 | $90,000 | 3 |
| $200,000 | $10,000 | $10,000 | $20,000 | $180,000 | 3 |
Look at the second and third columns. In every row, the Phase 2 target and the daily loss limit are the same number. In Phase 1, the target was twice the daily limit. That single change is the reason Phase 2 needs its own plan. The full program is reviewed in our OctoFunded 2-Step challenge article.
Is Phase 2 easier than Phase 1?
The target is easier. The risk is not. Compare the ratios side by side.
| Ratio | Phase 1 | Phase 2 |
|---|---|---|
| Target vs daily loss limit | 2 to 1 | 1 to 1 |
| Target vs max loss | 1 to 1 | 1 to 2 |
| Minimum trading days | 3 | 3 |
| Drawdown type | Static | Static |
In Phase 1, the worst single day could cost half of what the phase asked you to make. In Phase 2, the worst single day can cost all of it. A trader who carries Phase 1 size into Phase 2 is risking a full day of breach to chase a target that is already half the size. That is the core Phase 2 trap: the habits that were proportionate for a 10% target become oversized for a 5% one.
There is a psychological side too. You have already passed once, the fee has already been spent, and the funded account feels close. That pressure pushes some traders to force trades to "get it over with" and others to freeze. Our prop firm challenge psychology guide covers both reactions.
How much should you risk per trade in Phase 2?
Start from the target, not from habit. Because Phase 2 asks for half the profit, you can cut risk per trade and still need fewer net winners than Phase 1. The table shows this on a $100,000 account, assuming a 1:2 risk to reward ratio.
| Risk per trade | $ risk on $100,000 | Winner at 1:2 | Net winners for $5,000 | Full losses to reach $5,000 daily limit |
|---|---|---|---|---|
| 1.00% | $1,000 | $2,000 | 2.5 | 5 |
| 0.50% | $500 | $1,000 | 5 | 10 |
| 0.25% | $250 | $500 | 10 | 20 |
At 0.5% risk, Phase 2 needs five more winners than losers, the same count Phase 1 would need at 1% risk. And ten full losses would have to happen on the same day to breach the daily limit. That is the trade most Phase 2 plans should make: give up some speed in exchange for distance from the limit. For the mechanics of converting a percentage into position size, see how to calculate lot size and risk per trade.
What is a good risk plan to protect the pass?
Below is a Phase 2 plan the Trading Desk would use as a starting template. Change the numbers to match your size; keep the ratios.
| Rule | Setting | Dollars on $50,000 | Purpose |
|---|---|---|---|
| Risk per trade | 0.4% | $200 | 12 full losses before the daily limit |
| Personal daily stop | 1% | $500 | Stop at 20% of the official daily limit |
| Max trades per session | 3 | $600 at most at risk | Prevents overtrading on slow days |
| Daily profit lock | +1.5% | +$750 | Ends the session on a good day |
| Near target (within $500) | Halve risk | $100 per trade | The last steps cost the least |
| After two losing days in a row | Skip one session or trade minimum size | $100 per trade | Breaks the revenge pattern |
| Target reached | Stop the phase | $52,500 | Nothing after the target helps you |
With $200 risk and $400 winners, $2,500 needs about six more winners than losers. On a smooth run, that can fit within a few sessions; on a choppy one it takes longer. With no time limit, the longer path costs nothing except time, and the plan never lets one session approach the $2,500 daily limit.
Two habits matter more than any single setting. First, never increase size after a loss to win it back; our revenge trading article explains why this is the fastest way from a pass to a breach. Second, track the daily loss in dollars on the daily loss limit basis your dashboard uses, not by feel.
How many days does Phase 2 take?
The minimum is 3 trading days. There is no maximum. We will not give you an expected number, because it depends entirely on how often you trade and what the market offers.
Here is the honest math on speed. On $100,000, a $5,000 target over the 3 day minimum is $1,667 a day, a third of the daily limit. Over 10 days it is $500 a day, a tenth of the daily limit. Both are allowed. The second leaves far more room for an ordinary losing session. Rushing with bigger size is the most common way to breach, and Phase 2 is where it hurts most, because you already passed once.
If speed is your priority overall, read how to pass a prop firm challenge fast for the minimum-days math across programs, and how to get funded faster for paths that skip Phase 2 entirely, such as the 1-Step or Instant Funded.
What happens if you fail Phase 2?
A breach of the daily loss or max loss rule ends the Phase 2 evaluation. Passing Phase 1 does not protect you. You do not fail for taking too long, and there is no consistency rule on the 2-Step, so the only two ways to lose Phase 2 are the two loss limits. Our article on what happens if you breach a prop firm rule explains the process and your options afterwards.
That is why the plan above is built around the daily stop, not around the target. If the two loss numbers stay intact, Phase 2 is only a question of time.
What comes after Phase 2?
Passing Phase 2 leads to a funded account on the same simulated balance with the same loss limits, an 80% profit split, and a first payout window 14 days after funded activation, then every 7 days. KYC is required before the first payout, and the 2-Step fee is refunded with it. Our guide on after passing a prop firm challenge covers the transition.
| 2-Step size | List price | With OFF10 |
|---|---|---|
| $10,000 | $79 | $71.10 |
| $25,000 | $179 | $161.10 |
| $50,000 | $309 | $278.10 |
| $100,000 | $529 | $476.10 |
| $200,000 | $999 | $899.10 |
Prices checked 7 November 2026.
Two verified certificates show that the path through both phases ends in real payouts. Noah W. received $725 from a 2-Step $50,000 account (verify the certificate), and Ethan C. received $315 from a 2-Step $50,000 account (verify the certificate), both issued 4 November 2026. The certificates confirm name, amount, account and date; they say nothing about how either trader handled Phase 2. Their stories are in Noah W.'s 2-Step payout story and Ethan C.'s 50k first payout.
Phase 2 checklist
- I have written the Phase 2 target, daily limit and floor in dollars.
- I have recalculated risk per trade for a 5% target, not reused Phase 1 size.
- My personal daily stop is well below the official daily loss limit.
- I have a maximum number of trades per session.
- I lock the session after a strong day.
- I halve risk when I am close to the target.
- I will not add size after a loss.
- I will stop trading the phase the moment the target is reached.
- I have planned for the 14 day wait and KYC after funding.
For the bigger picture of how the evaluation stages fit together, see how a prop firm challenge works and prop firms explained for beginners.
Where to keep learning
The "Daily Loss" video on YouTube @OctoFunded explains the rule that decides most Phase 2 outcomes. New verified payouts are posted on X @octofunded. You can ask the desk Phase 2 questions in the Telegram community. Short rule explainers appear on Instagram, and the desk shares market ideas on TradingView.
FAQ
What is the profit target for Phase 2 of a prop firm challenge?
On the OctoFunded 2-Step, Phase 2 has a 5% profit target, half of the 10% Phase 1 target. On a $100,000 account that is $5,000, with a minimum of 3 trading days and no time limit.
Is Phase 2 easier than Phase 1?
The target is smaller, but the loss limits are the same: 5% maximum daily loss and 10% static maximum loss. In Phase 2 the target equals the daily loss limit, so one bad day can cost as much as the whole phase is asking you to make.
Does the balance reset for Phase 2?
Phase 2 is measured against the starting balance of the account size, so the 5% target and the loss limits are calculated from that balance again. Check your dashboard for the exact starting figures of your Phase 2 account.
What happens if you fail Phase 2?
Breaching the daily or maximum loss rule in Phase 2 ends that evaluation, even though Phase 1 was passed. There is no time limit, so you never fail Phase 2 just by taking longer.
How many days does Phase 2 take?
The minimum is 3 trading days on the OctoFunded 2-Step. There is no maximum. We do not publish expected durations, because they depend entirely on how and when you trade.
Should I lower my risk in Phase 2?
It is worth considering, because the target is half the size while the loss room is unchanged. A lower risk per trade still reaches 5% with fewer net winners than Phase 1 needed, and it keeps any single day far from the daily limit.
Risk Disclosure: Trading involves substantial risk of loss. We do not guarantee that you will pass Phase 2, pass within any number of days, or receive any payout. The risk plan and trade sizes in this article are labelled illustrative examples, not the activity of any trader, and past payouts do not predict future results. You may lose your entire account fee. OctoFunded provides simulated capital; you trade a demo environment, not live markets. Nothing in this article is investment advice. Read the full Risk Disclosure before trading.
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