Passing a one-phase challenge isn't about finding the perfect entry. It's about managing a handful of rules well over several weeks. This guide walks you through a step-by-step method: turning the rules into hard numbers, choosing your risk per trade, setting a sensible pace and planning for consistency from day one.
In short: the 1-Phase Challenge asks for a 9% profit without losing more than 4% in a day or dropping below the 6% static floor, over at least 5 active trading days and with no time limit. The most reliable approach is to risk little per trade, set a personal daily stop tighter than the official one and spread your profit across several days. A method lowers the odds of costly mistakes; the outcome still depends on how you trade.
Step 1: turn the rules into dollars
Percentages are abstract; dollar amounts aren't. Before your first trade, write the exact numbers for your account into your plan. Here are the 1-Phase Challenge figures for each size:
| Account | Target (9%) | Daily loss (4%) | Static floor (6%) | Max best day if you finish right at target |
|---|---|---|---|---|
| $15,000 | $1,350 | $600 | $14,100 | $540 (40%) |
| $30,000 | $2,700 | $1,200 | $28,200 | $810 (30%) |
| $60,000 | $5,400 | $2,400 | $56,400 | $1,620 (30%) |
| $100,000 | $9,000 | $4,000 | $94,000 | $2,700 (30%) |
| $200,000 | $18,000 | $8,000 | $188,000 | $5,400 (30%) |
The last column is the one people forget. If you close the Challenge at exactly 9% profit, the consistency rule caps your best day at that amount. We'll come back to how to use that to your advantage.
Keep the passing conditions in mind too: hit the target with closed trades, complete at least 5 active trading days, break no rules and have no open positions. They're all listed under the rulebook's trading objectives.
Step 2: decide your risk per trade
The official cap is 2.5% per trade, but allowed doesn't mean advisable. At 2.5%, two losses in the same day already break the daily limit, and three break the total floor.
A practical rule of thumb for an evaluation is to risk between 0.25% and 0.75% per trade. Example on a $100,000 account:
| Risk per trade | Amount | Losses in a row to reach 4% daily | Losses in a row to reach 6% total |
|---|---|---|---|
| 0.25% | $250 | 16 | 24 |
| 0.5% | $500 | 8 | 12 |
| 1% | $1,000 | 4 | 6 |
| 2.5% | $2,500 | 2 | 3 |
Losing streaks happen with every method. With small risk, a bad week is just a bad week, not the end of the account. To turn a dollar risk into a lot size, use the lot size calculator.
Step 3: set a personal daily stop
The 4% daily limit is a line you must not touch, not a loss budget. That's why it pays to have your own, stricter stop:
- Daily loss stop: for example 2%, half the official limit. On $100,000 that's $2,000. If you hit it, you're done until the next trading day.
- Losing-trade stop: for example two or three losses in a row. After that your judgment isn't what it was at the open.
- Watch floating losses: the daily limit includes open positions. If you have two trades running, add up the risk on both before opening a third.
The trading day runs from 8:00 p.m. to 8:00 p.m. (UTC-4), and the limit resets at that time. To see how it works with different starting balances, read the daily loss limit explained.
Step 4: plan for consistency from the start
The consistency rule says no single day can exceed 30% of your total profit (40% on accounts under $30K). For that calculation, a day counts only its winning trades; losing trades that day aren't subtracted.
In practice, that boils down to one idea: put a ceiling on your good days. Example on $100,000:
- If your final profit will land around $9,000, no day should go above $2,700 in winning trades.
- A practical ceiling is to aim for no more than 20% to 25% of the target in a day: somewhere between $1,800 and $2,250. That leaves you a buffer.
- If you reach your ceiling, close up and walk away. The market will be there tomorrow.
If a day ever ends up too heavy, the fix is to let your total profit grow enough, trading your normal plan. There are full worked examples in the consistency rule explained.
Step 5: pacing and active trading days
There's no time limit, and that's a big advantage if you use it well. An active trading day is a Monday-to-Friday day that isn't a U.S. holiday on which you open at least one trade. You need at least five, but nothing says you have to finish in five.
To think about pace, work backwards. As a planning example, not a projection: if your method takes a few trades a week at 0.5% risk, reaching 9% may take several weeks or months. That's fine. What isn't fine is changing your method because it feels slow.
A few pacing guidelines:
- Don't trade just to log days. A forced trade counts toward the minimum, but it can also cost you.
- Don't size up to catch up. If you're in the red, the account needs time, not bigger positions.
- Mind the inactivity rule: open at least one trade every 30 calendar days.
When you're down, and when you're close
The two riskiest moments in a Challenge are the extremes.
If you're in drawdown
A practical rule: if the account is down 3% from the starting balance (halfway to the static floor), cut your risk in half. On $100,000, going from $500 to $250 per trade doubles the number of attempts you have to recover without getting near the limit. Go through your trading journal to see whether the losses come from the market or from skipping your plan.
If you're close to 9%
It's tempting to take one big trade to "get it over with". Don't. Keep the same risk, let the target come to you and check three things before you call the Challenge done:
- All your positions are closed.
- You have at least 5 active trading days.
- Your best day doesn't exceed the consistency percentage.
Daily checklist
Copy this into your plan and run through it before every session:
- Do I know my balance at the start of the day and today's daily floor?
- Is my risk per trade still what I decided?
- What are my loss stop and profit ceiling for today?
- Do I have open positions whose risk I need to add up?
- Am I in a good state to trade, or is today a day to sit out?
Passing a challenge is mostly a test of consistency. A trader who follows a boring process week after week is usually in a better spot than one chasing the perfect day.
FAQ
How many days does it take to pass the 1-Phase Challenge?
At least 5 active trading days, with no time limit. You can take as many weeks as you need, as long as you open at least one trade every 30 calendar days.
How much should I risk per trade on the Challenge?
The maximum allowed is 2.5% of the starting balance per trade. A practical rule of thumb is to risk well below that, between 0.25% and 0.75%, so a normal losing streak doesn't bring you close to the limits.
Can I pass with open positions?
No. The Challenge is only evaluated once all your trades are closed, so close your positions when you reach the target.
What happens if I make too much in one day?
If that day exceeds the consistency limit when the account is evaluated, the account is reset. To avoid it, set a daily profit ceiling and, if one day already weighs too much, keep trading your normal plan until total profit grows.