Verification Phase
Also known as: phase 2, step 2, verification stage, confirmation phase
What is it?
The verification phase is the second stage of a two-step prop-firm evaluation - a repeat of the challenge at a lower profit target under the same risk rules, used to confirm the first result was repeatable. A typical $100,000 two-step programme asks for 8% in phase 1 and 5% in phase 2, and holds the 5% daily loss limit and 10% maximum drawdown constant across both. The time limit is often relaxed or removed in the second phase, and the minimum trading days usually restart.
| $100,000 programme | Phase 1 - challenge | Phase 2 - verification | Funded account |
|---|---|---|---|
| Profit target | 8% ($8,000) | 5% ($5,000) | None |
| Daily loss limit | 5% | 5% - unchanged | 5% |
| Maximum drawdown | 10% | 10% - unchanged | 10% |
| Drawdown anchor | Starting balance | Resets - phase 1 profit does not carry | Moves with each payout |
| Minimum trading days | 5 | 5 - restarts | 5 per payout cycle |
| Time limit | Often 30 days | Often unlimited | None |
| Do you get paid? | No | No | Yes, on the payout cycle |
So does the drawdown anchor: it resets to the new phase's starting balance rather than carrying your phase 1 profit forward, which means the cushion you built does not come with you. The design is deliberate. A trader can reach 8% once by tripling position size on a good week; reaching 5% again under an unchanged daily loss limit is much harder to do by accident.
That is also why the second phase fails so many accounts that cleared the first: the smaller number reads as an easier task and invites larger positions, while the rule that actually ends attempts has not moved at all. Your capital and your evaluation fee are at risk. See /risk-warning.
Why it matters: It repeats the same risk limits at a lower target, so an account is funded on a result you produced twice rather than on one good run.
It doubles the time and the trading days needed before any capital is allocated, without loosening a single one of the risk rules you trade under.
Real-world example
A two-step $100,000 evaluation asks 8% in phase 1 and 5% in phase 2, both under a 5% daily loss limit - so one unchanged rule has to hold across roughly $13,000 of gains.
How SignalBots handles it
SignalBots signals ship with fixed stop and target levels, which keeps risk per trade constant across both phases instead of drifting upward as the smaller second target starts to look close. See /risk-warning.
Pro tip
Trade phase 2 at the size that passed phase 1 - the lower target is meant to be reached slowly, and most phase 2 failures are size increases rather than bad setups.
Common pitfalls
Treating the smaller target as an easier phase. The daily loss limit is unchanged, so sizing up to finish faster is the usual way a cleared phase 1 is wasted.
Frequently asked questions
Does my phase 1 profit carry into phase 2?
No. The second phase starts at the original account size and the drawdown anchor resets with it, so the cushion you built in phase 1 does not travel with you into the verification.
Why is the phase 2 target lower?
Because the point is repeatability, not a bigger number. A smaller target under the same daily loss limit is a cleaner test of whether the first result came from a process or from one oversized week.
What happens if I breach phase 2?
At most firms the account is closed and you start again from phase 1, paying the fee again unless your plan includes a free retake. Clearing phase 1 does not bank you a place in the second phase.
Is there a time limit in the verification phase?
Many firms removed it, and those that keep one usually make it longer than phase 1 - often 60 days against 30. Check your own plan, because the unlimited-time model is common but not universal.
Is a one-step evaluation easier than two?
Not necessarily. One-step programmes typically compensate with a tighter drawdown or a consistency rule, so the risk constraint tightens as the number of phases falls.
Trading involves substantial risk of loss. Historical and backtested results do not guarantee future performance. Read the full risk warning.
