Prop trading is a more convenient way of trading for those traders who cannot trade on their own capital. But if you want to trade with a prop firm then you must have an idea of their evaluation process. It’s the gateway to securing funding and trading with the firm’s capital but how long does it actually take to complete? The answer isn’t as straightforward as you might hope because it depends on different factors like your skill level, the firm’s rules, and even market conditions. So let’s discuss how does 2-step evaluation takes to fund traders so traders have an idea to achieve the target on time.
Understanding the Two-Step Evaluation Process
It’s crucial to understand the process before moving on to the timeframe. The majority of proprietary trading organizations employ a 2-step evaluation methodology to assess traders’ abilities prior to financing them. This is how it usually looks:
- Step One: You must achieve a certain profit target while following the firm’s risk management rules such as max drawdown and daily loss limits. This phase usually lasts 30 days but can sometimes be completed sooner.
- Step Two: If you pass the first phase then you move on to the second which has a lower profit target and more relaxed rules. This phase often lasts 60 days, though again, it’s possible to finish it sooner.
Successful completion of both procedures grants you a funded account and allows you to begin trading using the company’s funds. Sounds easy, doesn’t it? However, when you take into account practical considerations, it becomes more complex.
How Fast Can You Complete Step One?
If you’re aggressive and the market is working in your favor, you might theoretically finish this step in a few days. If you reach the profit objective without violating any regulations then some companies may even let you pass in as little as one trading day. But there are serious hazards associated with this strategy. A more typical duration ranges from one to four weeks based on:
- Your Trading Strategy: Are you a scalper, day trader, or swing trader? Scalpers and day traders can complete the challenge faster since they take more trades, while in swing trading traders might need longer because they hold positions for days.
- Market Volatility: You can easily hit your goal if you’re trading during a time when volatility is high. Conversely, sluggish markets may cause the procedure to take longer.
- Method of Risk Management: You may either pass easily or ruin your account just as quickly if you put all of your money into every transaction. The best course of action is often to take a balanced risk strategy.
The greatest strategy is to be consistent and stick to your plan rather than concentrating simply on speed. Some traders make the mistake of hurrying through step one, only to fail because they overtrade or take unnecessary risks.
How Long Does Step Two Take?
Although it doesn’t have to, the second step often takes a little longer than the first. Theoretically, it should be simpler because the profit aim is smaller. However, because they are more cautious and aware that they are so close to receiving funding, traders frequently slow down during this time.
You might complete step two in one to four weeks if you continue to be as consistent as you were in step one. However, it may last the entire 60 days if you become extremely careful and begin to doubt yourself.
Common Pitfalls That Slow You Down
Although the evaluation may be finished quickly, many traders wind up taking longer than required. Here are a few such explanations:
- Overtrading: Attempting to move too fast frequently results in rash trades that might move you farther away from the objective and into drawdown.
- Fear of Losing: Some traders delay taking legitimate setups because they are so afraid of losing which hinders their growth.
- Disregarding the Rules: A lot of prop companies have stringent rules, and breaking even one of them might lead to failure in the challenge. Verify that you understand all of the firm’s criteria.
- Market Conditions: The state of the market There are just some difficult weeks. It might take longer than expected to reach your goals if you have a period of low volatility or erratic market activity.
What’s a Realistic Timeframe?
Let’s be honest—everyone wants to pass as fast as possible but it’s important to be realistic. Based on typical trader experiences, here’s what you can expect:
- Fast Completion: 7-14 days per step for aggressive and skilled traders who take high-probability setups and manage risk well.
- Average Completion: 3-6 weeks total for traders who follow a solid strategy but take a more cautious approach.
- Slow Completion: 8-12 weeks for traders who hesitate, struggle with discipline, or face unfavorable market conditions.
If you’re new to trading or prop firm challenges then expect to be on the slower side. More experienced traders who already have a proven strategy tend to move through the process much faster.
