How to Pass the Verification Phase
The verification phase is passed by protecting the drawdown on a fresh account while reaching a target that is often, but not always, lower than phase 1.
The verification phase is the second stage of a two step challenge, and it is passed the same way as phase 1: reach a profit target without breaking the loss limits. At many firms the target is lower, often about half of phase 1, while the loss limits stay the same, so the room for error is larger relative to the goal. The most avoidable way to fail it is to press for a quick finish on a fresh account.
What changes in verification
Phase 2 usually starts on a new account at the original starting balance. Profit from phase 1 does not carry over, and neither does any drawdown used, so the full loss limits are available again. Minimum trading day rules often apply again for the new phase. What changes most is the target, and the firms below show how much it varies.
| Firm and plan | Phase 1 target | Phase 2 target | Daily limit | Maximum loss | Minimum days |
|---|---|---|---|---|---|
| FundedElite 2 Step Free Retry | 8% | 5% | 5% | 8% static | 3 profitable days of 0.5% per phase |
| Blue Guardian 2 Step Standard | 8% | 4% | 4% | 8% static | 3 profitable days of 0.5% to pass |
| Hola Prime 2 Step Prime (up to $100K) | 8% | 5% | 5% | 10% static | 3 days per phase |
| The Trading Pit CFD Prime 2 Phase $50K | 10% | 5% | 4% | 8% static | 3 trading days |
| Orion Funded Standard | 6% | 6% | 3% | 6% static | 4 trading days per phase |
| WSFunded Classic | 8% | 5% | 5% | 8% static | 4 trading days |
| Leveraged Classic Senior | 5% | 8% | 5% | 10% static | 3 profitable days of 0.5% per phase |
The table shows why reading the plan matters. Five of the seven plans lower the target in phase 2, but Orion Funded’s Standard plan keeps it at 6% in both phases and Leveraged’s Classic Senior plan raises it from 5% to 8%. A trader who assumes verification is always easier can be caught out. One step vs two step challenges compares the formats as a whole.
A worked example
The account below is made up. It is a $100,000 two step challenge with an 8% phase 1 target, a 5% phase 2 target, a 5% daily loss limit and a 10% static maximum loss, and it needs 3 profitable days of at least 0.5% in each phase.
In phase 1 the trader needed $8,000 with $10,000 of room, so the room was only 1.25 times the target. In phase 2 the target is $5,000 with the same $10,000 of room, which is twice the target. That extra margin is the advantage of verification, and it is easy to waste.
| Risk per trade | Average result per trade | Trades needed on average | Losses to reach the maximum loss |
|---|---|---|---|
| 1% ($1,000) | $350 | About 14 | 10 |
| 0.5% ($500) | $175 | About 29 | 20 |
The averages assume a strategy that wins 45% of the time and makes twice its risk on each win, so at 1% risk the average trade is 0.45 times $2,000 minus 0.55 times $1,000, or $350. Halving the risk roughly doubles the number of trades needed, but it also halves the damage of a losing run. At 0.5% risk, a run of six losses costs $3,000 and leaves $7,000 of room with the target still well within reach. At 1% risk, the same run costs $6,000, breaches the daily limit if it happens in one session, and otherwise leaves only $4,000, a position in which it is tempting to force trades.
The minimum day rule also shapes the plan. Each profitable day must make at least $500, so a trader who reaches $5,000 in two days still needs a third day with $500 or more of profit. That third day should be traded small, because a large loss on it could undo the pass.
Setting a line for a bad start
It also helps to decide in advance what happens if verification starts badly. On the same made up account, a trader might agree that if the balance falls $3,000 below the start, risk drops from 0.5% to 0.25% per trade until half of that loss is recovered. At $250 a trade, the remaining $7,000 of room covers 28 losses, so a poor first week becomes a slower phase rather than a failed one. Writing the rule down before the first trade matters, because the decision is much harder to make in the middle of a losing run.
What stays the same
Everything except the target and the fresh balance usually carries over from phase 1. News restrictions, holding rules, automation rules and prohibited strategies still apply, and so does the way the daily limit is measured. A strategy that worked in phase 1 is the one to use in phase 2, at the same size or smaller. Verification is not the place to try a new instrument, a new session or a new setup.
A five step plan for verification
- Reread the phase 2 rules. Check the target, minimum days, news restrictions and whether anything differs from phase 1.
- Start smaller than in phase 1. The first few days set the tone, and a loss early in verification is the hardest to recover from mentally.
- Set a personal daily stop. Stop for the day well before the firm’s daily limit, for example at half of it.
- Spread the profit. Aim to reach the target over several days so minimum day and consistency rules are met without extra trading at the end.
- Stop once the conditions are met. Close all positions when the target and minimum days are reached, and wait for the firm’s review rather than trading on.
A day by day breakdown of a successful evaluation shows how this pacing looks in practice.
How firms differ
Beyond the target, firms differ on how the minimum day rule is counted, whether profitable days need a set percentage gain and how the daily limit is measured. Blue Guardian measures its daily limit from the higher of balance or equity at the daily reset, while Orion Funded measures from the greater of the previous day’s closing balance or closing equity. None of the firms in the table sets a time limit, although each closes accounts after a period without trading, which removes the deadline pressure that pushes traders to force a finish. Some firms also offer protection if verification fails. FundedElite’s Free Retry plans restart the trader from phase 1 at no extra cost after a breach in either phase, although the retry tightens the rules and cuts the profit split to 50%. Prop firm resets and free retries covers these options in detail.
Common mistakes
- Trading bigger because the target is smaller. The lower target is a reason to trade the same size or smaller, not larger.
- Assuming the rules are identical. Targets, minimum days and even allowed strategies can differ between phases.
- Carrying phase 1 momentum. A strong phase 1 can lead to overconfidence on day one of verification.
- Forgetting the minimum days. Reaching the target early and then trading large on the remaining required days is a common way to give it back.
- Trading on after the target. Once the conditions are met, any further trade adds risk and nothing else.
Checklist
- Confirm the phase 2 target, loss limits and minimum days for your exact plan and size.
- Set risk per trade so that at least ten losses fit inside the maximum loss.
- Set a personal daily stop below the firm’s daily limit.
- Plan the minimum profitable days in advance and keep the last ones small.
- Close everything and stop once the target and day count are met.
If phase 1 is still ahead, read why traders fail prop firm challenges first. What happens next is covered in what happens after you pass a prop firm challenge, and more guides sit under passing the challenge. Firms offering two step plans are listed under forex and CFD prop firms.
Frequently Asked Questions
Is the verification phase easier than phase 1?
Often, but not always. Many two step plans lower the target in phase 2, such as 8% then 5% at FundedElite and Hola Prime, while keeping the same loss limits. Some do not. Orion Funded's Standard plan asks for 6% in both phases, and Leveraged's Classic Senior plan asks for 5% in phase 1 and 8% in phase 2.
Does my profit from phase 1 carry over to verification?
Usually not. At many firms phase 2 starts on a new account at the original starting balance, so phase 1 profit does not count towards the new target. The upside is that any drawdown used in phase 1 is also cleared, and the full daily and maximum loss limits are available again. Check the firm's rules for your plan to confirm how it handles the new account.
How long does the verification phase take?
There is no set length at firms without a time limit, only a minimum number of trading or profitable days, such as three or four. A trader risking 0.5% per trade on a 5% target might need around 30 trades on average with a typical strategy, which can take anywhere from a week to several weeks. Rushing to finish sooner mainly adds risk.
What happens if I fail the verification phase?
At many firms the account is closed and you need to buy a new challenge, starting again from phase 1. Some firms sell a reset or discount on a new attempt, and FundedElite's Free Retry plans restart from phase 1 at no extra cost after a breach, with tighter rules and a 50% profit split on the account that follows.
Should I stop trading once I reach the verification target?
Yes, once every condition is met. If the firm also requires a minimum number of trading or profitable days, keep trading only until those are complete, and keep the size small on those days. When all conditions are met, close positions and wait for the firm's review, because any further trade can only add risk to a pass that is already secured.
