1-Step Prop Firm Challenge: Rules, Pros and Cons
One target, one phase, tighter limits. How a 1-Step challenge works, where the trailing floor and the 50% best day cap bite, in dollars on $100K.
OctoFunded Trading DeskUpdated ยท 8 min read
A one step prop firm challenge is an evaluation with one phase and one profit target. Reach the target inside the loss limits and you move to a funded account on simulated capital; break a limit and the challenge ends. There is no second phase to repeat.
This guide covers the OctoFunded 1-Step in depth: each rule, what it means in dollars on $100K, the pros and cons of a single phase evaluation and the type of trading it tends to suit. For the bigger picture, see how a prop firm challenge works.
Key takeaways
- One phase, one target: 10% on the 1-Step, which is $10,000 on a $100K simulated account.
- Tighter limits pay for the shorter path: a 4% daily loss limit and an 8% trailing max loss.
- The floor follows your highs: under a trailing max loss, profit does not widen your room.
- One day cannot carry the target: the 50% best day cap means no day above half of your total profit.
- The fee comes back: on the 1-Step, the fee is refunded with the first payout.
What is a one step prop firm challenge?
A one step prop firm challenge, also called a 1 step challenge or one phase prop firm evaluation, asks you to hit a single profit target before you reach a funded account. A 2-Step splits the test into two targets; a 1-Step compresses it into one.
To balance that shorter path, firms usually tighten something else. The daily loss limit gets smaller, the max loss trails instead of staying fixed, or a consistency rule is added. The OctoFunded 1-Step does all three, compared with its 2-Step.
If you want all programs side by side, compare all three program types. This article stays on the 1-Step only.
What are the OctoFunded 1-Step rules?
The OctoFunded 1-Step has five numbers that matter: the target, the daily loss limit, the max loss, the best day cap and the fee refund.
| Rule | 1-Step | On an illustrative $100,000 simulated account |
|---|---|---|
| Phases | 1 | One target to reach |
| Profit target | 10% | $10,000, so a balance of $110,000 |
| Daily loss limit | 4% | $4,000 as a share of $100,000 |
| Max loss | 8% trailing | Floor starts at $92,000 and rises with new highs |
| Best day cap | 50% of total profit | At $10,000 of profit, no day above $5,000 |
| Time limit | None | Trade at your own pace |
| Fee refund | With the first payout | The fee comes back with the first payout |
After the challenge, payouts use an 80% profit split from the first payout, on a 14-day cycle, in USDT or USDC on-chain with a public transaction hash, subject to the program rules. Expert Advisors are allowed. The OctoFunded program rules explain exactly how each limit is measured.
How do the target and the trailing floor interact?
On a 1-Step, the target and the trailing floor move against each other: every new high brings you closer to the target and also lifts the floor. Your room stays close to $8,000 the whole way.
Firms trail in different ways (equity or balance, intraday or end of day, with or without a stop level), so read the trailing drawdown variants and the program rules. To show the effect, here is an illustrative method where the floor trails the highest closing balance by $8,000. It is an example, not a statement of how OctoFunded measures it.
| Progress to target | Highest close ($) | Floor in this example ($) | Room above floor at the high ($) |
|---|---|---|---|
| 0% | $100,000 | $92,000 | $8,000 |
| 25% | $102,500 | $94,500 | $8,000 |
| 50% | $105,000 | $97,000 | $8,000 |
| 75% | $107,500 | $99,500 | $8,000 |
| 99% | $109,900 | $101,900 | $8,000 |
Under a static floor, being 75% of the way to target would mean $17,500 of room. Under this trailing floor it is still $8,000. That is the single biggest difference between a 1-Step and a challenge with a fixed floor.
The practical consequence: your position size should be based on the $8,000 distance and your worst streak, not on how far you are in profit. Getting bigger near the target is the classic way to give it all back.
How does the 4% daily limit shape your sizing?
The 4% daily loss limit is $4,000 per day on a $100K simulated account, measured as a share of $100,000. Divide it by your risk per trade to see how many losers in a row you can take.
| Risk per trade ($) | Losers before $4,000 is reached | Room after a 3-loser day ($) |
|---|---|---|
| $250 | 16 | $3,250 |
| $500 | 8 | $2,500 |
| $800 | 5 | $1,600 |
| $1,000 | 4 | $1,000 |
Which balance the limit is measured from changes your real room. Read daily loss limit for the common methods and check the program rules for the 1-Step.
Some traders set a personal daily stop at about half the limit, here $2,000, so slippage or one extra trade never decides the challenge.
How does the 50% best day cap affect the 1-Step?
The 50% best day cap means no single day can be more than half of your total profit. At the 10% target, that is no day above $5,000 on a $100K simulated account.
| Largest day ($) | Minimum total profit at 50% ($) |
|---|---|
| $2,000 | $4,000 |
| $4,000 | $8,000 |
| $5,000 | $10,000 |
| $6,000 | $12,000 |
A 50% cap only bites if one session carries most of your result. If you make $6,000 in one day, your total needs to reach $12,000 to fit the cap, which is above the $10,000 target.
Check the program rules for when the cap is checked before you plan around it. For the mechanics, see the best day rule guide.
Worked example: a $100K 1-Step from start to target
Here is an illustrative trader on a $100K 1-Step simulated account. They risk $500 per trade, stop after three losers in a day, and the floor uses the example method above.
| Day | Daily result ($) | Closing balance ($) | Floor in this example ($) | Note |
|---|---|---|---|---|
| 1 | +$1,500 | $101,500 | $93,500 | New high |
| 2 | +$2,000 | $103,500 | $95,500 | New high |
| 3 | -$1,500 | $102,000 | $95,500 | Three losers, stopped |
| 4 | +$1,000 | $103,000 | $95,500 | Below the high |
| 5 | +$2,500 | $105,500 | $97,500 | New high |
| 6 | -$1,000 | $104,500 | $97,500 | Two losers |
| 7 | +$3,000 | $107,500 | $99,500 | Largest day |
| 8 | +$2,500 | $110,000 | $102,000 | Target balance reached |
Target. Total profit is $10,000, which is the 10% target.
Daily limit. The worst day cost $1,500, or 37.5% of the $4,000 limit.
Floor. At day 7, the floor sits at $99,500. An $8,000 losing streak from there would have ended the challenge one day before the target.
Best day. The largest day is $3,000, which is 30% of $10,000, inside the 50% cap.
This is one path that fits the rules. It does not suggest that any challenge will reach the target.
What are the pros and cons of a 1-Step challenge?
The main advantage of a 1-Step is a shorter path with one target. The main drawback is less room to make mistakes along the way.
Pros
- One target to reach, with no second phase to repeat.
- No time limit, so the single phase never turns into a race.
- The fee is refunded with the first payout. See how the fee refund works.
- A 50% cap that most traders with spread-out profit meet without changes.
Cons
- A smaller daily limit than the 2-Step: 4% instead of 5%.
- A trailing floor, so profit does not buy extra room.
- Position sizing must stay flat near the target, where it is most tempting to press.
- One big day cannot carry the whole target.
Who is a 1-Step challenge suited to?
A 1-Step tends to suit traders whose results are fairly even and who rarely give back a large part of a winning run.
- Your worst day is under about 2%, leaving room under the 4% limit.
- Your worst streak from a peak is well under 8%, since the floor follows your highs.
- No single day makes up more than half your profit.
- You size by distance to the floor, not by account balance.
- You have a written plan. A risk plan for a challenge helps you keep sizing flat.
If you swing trade with deep pullbacks, a challenge with a fixed floor may fit better.
FAQ
What is a one step prop firm challenge?
It is an evaluation with a single phase: you reach one profit target on a simulated account while staying inside the loss limits, and then move to a funded account with simulated capital. There is no second phase to repeat.
What are the OctoFunded 1-Step rules?
The 1-Step has a 10% profit target, a 4% daily loss limit, an 8% trailing max loss and a best day cap of 50% of total profit. There is no time limit, and the fee is refunded with the first payout, subject to the program rules.
Is a 1-Step challenge easier than a 2-Step?
Not in general. It has one target instead of two, but the daily loss limit is smaller and the max loss trails your highs. Whether it is easier depends on how your losing days and losing streaks compare with those limits.
How does the 50% best day cap work on the 1-Step?
No single day can be more than half of your total profit. On a $100K simulated account with $10,000 of total profit, that means no day above $5,000.
Is the 1-Step fee refunded?
Yes. On the OctoFunded 1-Step, the fee is refunded with the first payout, subject to the program rules.
Check your numbers against one phase
A 1-Step is a shorter path only if your losing days and streaks fit its tighter limits. OctoFunded publishes the 1-Step rules before you buy, on simulated capital, with a one-time fee and no time limit.
