P1 Challenges: Models, Phases, and Account Progression
The core of our evaluation process centers on simulated challenges carefully designed to test your skills, discipline, and risk management.
First, you choose your trading strategy:
Day Trading: Strictly for intraday positions (no overnight holds).
Swing Trading: Permits holding positions overnight and through weekends.
Next, you select from three distinct challenge types, differentiated by the number of evaluation phases you must pass to get to the funded phase:
2-Step Challenge: You must pass two evaluation phases before qualifying for the Funded Phase, where actual payout rewards are unlocked.
1-Step Challenge: A faster route requiring only one evaluation phase before reaching the Funded Phase.
Instant Challenge: Bypasses the evaluation entirely, allowing you to start directly in the Funded Phase from day one.
The 3 Challenge Phases
Before explaining how progression works, it is important to understand the three distinct phases you will find in P1 challenges:
Evaluation Phase: Your initial assessment. You must reach the Profit Target and meet all Trading Objectives without breaching any risk rules. This phase exists in both 2-Step and 1-Step Challenges.
Verification Phase: A second assessment operating under the exact same framework. This confirms your initial success was based on a consistent strategy, not a one-off event. This phase exists only in the 2-Step Challenge.
Funded Phase: Once you pass the required evaluations stages, you continue trading under the core risk rules and become eligible to earn payouts on your simulated realized profits. The Instant Challenge starts directly in this phase, meaning there are no Evaluation or Verification steps to accomplish.
Note on Time Limits: There is no maximum time limit to complete any stage. You can trade at your own pace, provided you do not violate any rules that would trigger a Hard Breach (which instantly terminates the challenge).
Account Progression: Advancing to the Funded Phase
The "Steps" in a challenge's name simply refer to the number of assessments a trader must pass to reach the Funded Phase and compete for payouts. The progression paths look like this:
2-Step Challenge: Evaluation Phase upgrades to the Verification Phase and finally to the Funded Phase
1-Step Challenge: Evaluation Phase upgrades to the Funded Phase
Instant Challenge: Starts directly in the Funded Phase
How automatic upgrades work:
Advancing from the Evaluation Phase to the Verification Phase, and ultimately to the Funded Phase, is fully automated. Once you reach your Profit Target and satisfy all other KPIs and requirements, your current challenge is automatically marked as a success. Shortly after, a new account for your next phase will be provisioned and ready for you to trade.
How the Funded Phase is different:
Unlike the evaluation stages, the Funded Phase does not have a specified Profit Target that automatically closes the challenge once reached. Instead, this phase is ongoing. To lock in your simulated profits and claim your payout, you simply need to close all open positions. You can continue trading your Funded Phase account normally, even after multiple payouts are processed.
Level of Difficulty by Challenge Type
All P1 Challenges share the same underlying "DNA" regarding risk logic and rule categories. However, challenges with fewer steps inherently carry a higher degree of difficulty.
While the core rules remain consistent across the board, the specific parameters (such as profit targets, daily loss limits, and maximum drawdown allowances) will vary based on the challenge model and phase.
We highly recommend getting well-acquainted with the specific requirements of each phase before you start trading.
You can view all of our challenge parameters here: [Insert Link: Prop Firm Challenges & Trading Evaluation Explained | P1 Prop]
It is also imperative to read and understand our specific rules here: [Insert Link: Objectives, Rules & Forbidden Practices]
Which Challenge is Right for You?
Choosing the right challenge comes down to a personal trade-off between cost-versus-benefit, your risk tolerance, your return expectations, your specific trading strategy, and plain preference.
Want to learn about the Trading Objectives, Rules and Prohibited Practices that are enforced in the P1 Challenges read this article
See all available Challenge Prices vs corresponding Account Sizes (initial balance) & key Trading Objectives here: Challenge Price Matrix