Please note that all accounts we provide to our clients are demo accounts with fictitious funds and any trading is in a simulated environment only. For more information, please feel free to visit our FAQ section.
The 2 Step Challenge is designed to evaluate your trading strategy and consistency across two distinct phases. Once you complete both steps successfully, you’ll be eligible for a Simulated Funded Account.
Profit target 10%
Example: Sarah (cTrader ID #78432) starts with a $100,000 account. To Pass this step, she needs to generate $10,000 in profit, bringing her total balance or equity to $110,000 while staying within the rules.
Daily Drawdown – 5%
What does this mean?
Sarah’s daily equity must not fall below 5% of her initial balance, regardless of account growth
How is it calculated?
Each new trading day, 5% of the original account balance is subtracted from the highest equity reached that day.
Example – Sarah starts the challenge with Initial balance: $100,000
Maximum Drawdown – 10%
What does this mean?
This is the absolute minimum your balance or equity can reach during the challenge.
Example – Sarah starts the challenge with balance of $100,000 her maximum loss limit is 10% of that is $10,000. If at any time her balance or equity drops to $90,000, her challenge will be closed.
Trade on at least 5 different days during the challenge. These do not need to be consecutive, but you must avoid 30 days of inactivity—otherwise, your account will be closed.
After passing Step 1, you will automatically advance to Step 2.
This phase tests your ability to trade consistently and profitably over time. The profit target is lower, but risk rules stay in place.
Profit target 5%
Example Sarah (cTrader ID #78432) starts the challenge with a $100,000 account. To Pass this step and the Challenge, she needs to generate $5,000 in profit, bringing her total balance or equity to $105,000 total.
Daily Drawdown – 5%
What does this mean?
Sarah’s daily equity must not fall below 5% of her initial balance, regardless of account growth.
How is it calculated?
Each new trading day, 5% of the original account balance is subtracted from the highest equity reached that day.
Example – Sarah starts the challenge with Initial balance: $100,000
Maximum Drawdown – 10%
What does this mean?
This is the absolute minimum your balance or equity can reach during the challenge.
Example – Sarah starts the challenge with balance of $100,000, her maximum loss limit is 10% = $10,000. If at any time her balance or equity drops to $90,000 or below, her challenge will be closed.
Trade on at least 5 different days during Step 2. As with the previous step, 30 consecutive days of inactivity will result in challenge closure.
After Completing Both Steps
Once you’ve met all trading objectives without breaking any rules, your account will be reviewed. You’ll then receive a certificate of completion, and we’ll begin KYC verification for your Simulated Funded Account.
Standard 80% profit split applies.
Example: If Sarah earns $5,000 in simulated profits, she will receive $4,000 as her payout.
*Please note Challenge accounts are reviewed by our trading team between the hours of 9- 5 PM EST Monday – Friday. With that in mind, if you pass the challenge on the weekend it will be reviewed on Monday.
R1 London Ltd
45 Fitzroy Street
London W1T 6EB United Kingdom
R1 London Ltd
45 Fitzroy Street
London W1T 6EB
United Kingdom
All information provided on this site is intended solely for educational purposes related to trading on financial markets and does not serve in any way as a specific investment recommendation, business recommendation, investment opportunity analysis or similar general recommendation regarding the trading of investment instruments. The website is own and managed by R1 London Ltd (“the Company”). The Company is not engaged in providing any investment services as defined in the Capital Market Undertakings Act No. 256/2004 Coll. R1 London Ltd does NOT function as a broker and does not accept deposits. The technology solution for the Simulated accounts and trading platforms, including the data feed, is provided by third-party data providers.
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