Phase 2 target: 5%, plus 3 profitable days. No time limit.
The floors stay the same while the target shrinks, so lower risk per trade still gets you there.
At 0.5% risk, 20 losses in a row would reach the max-loss floor from the start.
What changes in phase 2
Only two things change: the target is smaller and the profitable-days count starts again. The loss floors are the same. On a $10,000 phase 2 account:
- Target: +$500
- Qualifying day: at least $50, 3 times
- Daily floor on day one: $9,500
- Max-loss floor: $9,000, static
Compare two numbers: $1,000 of room above the max-loss floor and $500 to the target. A smaller target under the same floors means you do not need big trades to finish.
Phase 2 is also where traders relax too early. Passing phase 1 proves your plan can work; it does not lower the bar. Start phase 2 with the same checklist, the same risk and the same daily stop you used to pass phase 1.
Size for the streak, not the target
Pick your risk per trade from the number of losses you can absorb. On the 2-Step:
| Risk per trade | Losses to the daily floor | Losses to the max-loss floor |
|---|---|---|
| 0.25% | 20 | 40 |
| 0.5% | 10 | 20 |
| 1% | 5 | 10 |
Then size from the stop. With $50 of risk and a 25-pip stop on EURUSD at about $10 per pip per lot: $50 ÷ (25 × $10) = 0.20 lots.
If your stop needs to be wider, the lot size gets smaller and the dollar risk stays the same. That is the whole point: the market decides where the stop goes, and your risk rule decides the size.
A simple phase 2 plan
- Fix risk at 0.25–0.5% per trade and keep it there.
- Set a personal daily stop at half the daily limit: about $250 on $10,000.
- Expect a pace, not a sprint: at 0.5% a day the target takes about 10 trading days.
- Close trades before the 17:00 New York time reset when you can, so each good day counts cleanly.
- Do not raise risk as you get close. The last part of the target is where late breaches happen.
Common ways phase 2 goes wrong
- Trying to finish in one day because the target looks small.
- Holding over the weekend without the Weekend Holding add-on.
- Opening a new FX or metal trade inside the 2-minute news window.
- Letting an open loss run through the daily reset, so the new day starts with less room.
- Sizing up after a loss to win it back.
- Counting a green day as a profitable day without checking that it cleared $50 on $10,000.
Most of these share one cause: hurry. There is no time limit on phase 2, so the only cost of slowing down is a few more days.
After phase 2
When both checks are met, the account is reviewed and you complete identity verification and the trader agreement in the MyFundedCapital Dashboard. The funded account has no target. The same floors apply, plus a 35% consistency rule. Your first payout request opens 14 days after your first funded trade.
Quiz
Check yourself
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Lesson complete
Nice work. … of 4 lessons in 2-Step Challenge done.
MyFundedCapital School
2-Step Challenge checklist
Rules as of 17 Oct 2026. Tick each line before your next session.
| Rule | 2-Step Challenge |
|---|---|
| Profit target | 8% + 5% |
| Daily loss limit | 5% |
| Maximum loss | 10% · static |
| Consistency | 35% |
| First payout | after 14 days |
| Then every | 14 days |
| Profit split | 80% → 95% |
1. What are the 2-Step Challenge rules?
- Phase 1: 8%. Phase 2: 5%. Each needs 3 profitable days.
- Daily floor: 5% below yesterday’s closed balance, checked on equity.
- Max-loss floor: 10% below the starting balance. It never moves.
2. What counts as a profitable day in the 2-Step Challenge?
- A day counts only if it gains at least 0.5% of the phase’s initial balance.
- The rule uses the lower of end-of-day balance or equity, so open losses can cancel a day.
- You need 3 qualifying days in phase 1 and another 3 in phase 2.
3. How do you pass phase 2 of the 2-Step Challenge?
- Phase 2 target: 5%, plus 3 profitable days. No time limit.
- The floors stay the same while the target shrinks, so lower risk per trade still gets you there.
- At 0.5% risk, 20 losses in a row would reach the max-loss floor from the start.
4. How does the 2-Step Scaling Plan work?
- Review every 120 days: 10% net closed profit and 2 paid payouts.
- Each step adds 25% of the original size, up to $500,000.
- Your split does not change as you scale, and ordinary payouts never wait for scaling.
myfundedcapital.com/learn/
Questions
Should I change my strategy for phase 2?
You do not have to. Keeping the same strategy and lowering risk is a sensible default, because the target is smaller and the floors are the same.
What happens if I breach in phase 2?
Reaching either floor is a hard breach and ends that account. Passing phase 1 does not protect phase 2, which is why phase 2 deserves the same discipline.
Related lessons
Tools and rules
Rules shown here come from the help center and the live rulebook; your program terms apply.
