Prop Firm Evaluation Phases Explained: Phase 1 vs Phase 2

By James Rodriguez · Head of Trader Education · 2026-03-07 · Funded Trader
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Prop Firm Evaluation Phases Explained

Most prop firms use a two-phase evaluation to assess trader skill and consistency. Here's exactly how it works.

Phase 1: The Challenge

Phase 1 tests your ability to generate profits while managing risk.

ParameterAlpha Trader FirmFTMOFundedNext
Profit Target8%10%8%
Daily Loss Limit5%5%5%
Max Drawdown10%10%10%
Min Trading DaysNone4 daysNone
Time LimitNone30 daysNone

Phase 2: The Verification

Phase 2 tests consistency — can you repeat your Phase 1 performance?

ParameterAlpha Trader FirmFTMOFundedNext
Profit Target5%5%5%
Daily Loss Limit5%5%5%
Max Drawdown10%10%10%
Min Trading DaysNone4 daysNone
Time LimitNone60 daysNone

After Phase 2: The Funded Account

After passing both phases, you receive a funded account with the full account balance. You can now trade and earn your profit split (80-90% with Alpha Trader Firm).

Why Alpha Trader Firm's Evaluation Is Trader-Friendly

Alpha Trader Firm has no time limits and no minimum trading days in either phase. This means you can trade at your own pace without artificial pressure — a significant advantage over FTMO's 30/60-day limits.

Start your two-phase evaluation with Alpha Trader Firm →

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