How to Pass a One-Step Prop Firm Challenge Successfully

Trading with a One Step Challenge Prop Firm offers a fast-track route to securing funding, making it an attractive option for traders seeking capital. Unlike a 2 Step Evaluation, where traders must pass multiple phases, a one-step challenge simplifies the process by requiring traders to meet profit targets in a single phase. However, passing this challenge requires discipline, risk management, and a well-structured trading strategy.

This guide will outline the best practices to help traders succeed in a one-step prop firm challenge, avoid common pitfalls, and secure a funded account efficiently.

Understanding the One-Step Prop Firm Challenge

A One Step Challenge Prop Firm allows traders to prove their skills in a single evaluation phase. Traders must reach a set profit target while staying within the firm’s risk limits, such as daily drawdown, maximum loss, and minimum trading days.

The key differences between a one-step challenge and a 2 step evaluation are:

• Faster Access to Capital: Traders only need to pass one phase instead of two.
• Stricter Risk Management: Firms often impose tighter drawdown limits since there is no second verification step.
• Higher Profit Targets: Some one-step challenges require a more aggressive approach to meet the profit goals in a short period.

Because of these factors, traders need a clear strategy to pass the challenge efficiently without violating the rules.

Step 1: Read and Understand the Prop Firm Rules

Every One Step Challenge Prop Firm has specific guidelines that traders must follow. Some common rules include:

• Profit Target: The percentage gain required to pass the challenge.
• Daily Drawdown: The maximum allowable loss in a single trading day.
• Maximum Overall Drawdown: The total capital that can be lost before disqualification.
• Minimum Trading Days: Some firms require traders to trade for a set number of days to avoid passing too quickly.

Before starting, traders must thoroughly review the challenge parameters to ensure they build a trading plan that aligns with the firm’s requirements.

Step 2: Develop a Winning Trading Strategy

A successful trader follows a strategy that balances risk and reward while maintaining consistency. Since a one-step challenge typically has a higher profit target than a 2 step evaluation, traders must carefully choose a method that allows them to reach the target without excessive risk.

Some effective trading strategies include:

1. Trend-Following Strategy

• Focuses on entering trades in the direction of the prevailing trend.
• Uses moving averages, RSI, and trendlines to confirm entries.
• Reduces the risk of reversals by aligning trades with market momentum.

2. Breakout Trading

• Identifies key support and resistance levels and trades breakouts.
• Works well during high-volatility sessions, such as London and New York opens.
• Requires precise stop-loss placement to avoid false breakouts.

3. Scalping Strategy

• Takes advantage of small price movements for quick profits.
• Uses tight stop-losses and high trade frequency to build gains.
• Works best on low-spread currency pairs or high-volatility assets like XAUUSD.

Selecting the right strategy depends on the trader’s experience, risk tolerance, and trading style. The key is to remain consistent and avoid overtrading or forcing trades just to meet the target quickly.

Step 3: Manage Risk to Stay in the Game

Risk management is the most important factor when attempting to pass a one-step challenge. Since there is no second evaluation phase, traders must protect their capital and avoid exceeding the drawdown limits.

Effective risk management techniques include:

• Risking No More Than 1-2% Per Trade: Keeping risk low ensures traders can withstand multiple losses without failing the challenge.
• Using a Stop-Loss on Every Trade: Avoiding unnecessary losses by defining exit points in advance.
• Adjusting Position Sizing: Using lot sizes that align with the account size and risk parameters.
• Following a Daily Loss Limit: If a trader reaches the maximum daily loss, it’s best to stop trading for the day and reset the next session.

Funding Pips and other top prop firms emphasize strict risk management discipline to prepare traders for real capital management.

Step 4: Trade Only the Best Market Setups

One of the biggest mistakes traders make in one-step challenges is overtrading. Instead of taking multiple low-quality trades, traders should focus on high-probability setups that align with their strategy.

Some tips to identify the best trade setups:

• Trade High-Volume Sessions: The London and New York sessions offer the best liquidity and price movements.
• Avoid Trading During Low Volatility Hours: Mid-Asian session and weekends typically have less movement.
• Use Confirmation Signals: Instead of guessing, traders should wait for confirmation from indicators like MACD, Fibonacci retracements, or candlestick patterns.

By waiting for quality setups, traders increase their win rate and reduce unnecessary losses.

Step 5: Maintain Emotional Discipline

Psychology plays a crucial role in passing a one-step challenge. Many traders fail not because of poor strategy but due to emotional decisions, such as revenge trading, fear of missing out (FOMO), or overconfidence.

To maintain discipline:

• Stick to the Trading Plan: Avoid making impulsive trades outside the strategy.
• Take Breaks When Needed: If emotions take over, stepping away from the charts helps reset the mindset.
• Focus on Process Over Results: Instead of obsessing over profits, traders should focus on following the correct strategy.

A trader with a solid emotional approach is far more likely to pass than one who lets greed or fear dictate their decisions.

Step 6: Track Progress and Adapt

Monitoring performance is essential to making improvements throughout the challenge. Traders should review their trades daily, analyze mistakes, and identify areas for improvement.

Some key performance metrics to track:

• Win Rate: The percentage of winning trades vs. losing trades.
• Risk-to-Reward Ratio: Ensuring trades have a positive expectancy (e.g., risking $1 to make $2).
• Drawdown Levels: Making sure losses remain within the prop firm’s limits.

If something isn’t working, traders should adapt their strategy rather than forcing trades just to meet the profit target.

Conclusion

Passing a One Step Challenge Prop Firm requires a structured approach, risk management, and disciplined execution. Unlike a 2 step evaluation, traders must meet their profit target in a single phase, making consistency and emotional control even more critical.

By following these steps—understanding the rules, developing a solid strategy, managing risk, focusing on high-probability trades, maintaining discipline, and tracking progress—traders increase their chances of securing a funded account and trading with real capital.

A well-prepared trader knows that the goal is not just to pass the challenge but to build long-term success as a profitable trader in the prop firm industry.