How Long Does It Take to Finish the First Phase of a Prop Firm Challenge?

For many traders, just like me, joining a proprietary (prop) trading firm is an exciting opportunity to trade larger capital with the firm’s backing, often after passing a two-phase challenge. A common question among those considering this path is: “How long does it take to finish the first phase of a prop firm challenge?” In this article, I will explain why it might take a while, why it might take a while, and how long it takes me on average to complete the A Prop Firm Challenge.

Understanding the Prop Firm Challenge

Prop firms usually require traders to prove their skills through a challenge that typically consists of two phases. The first phase, often referred to as the “evaluation phase,” is where traders must achieve a specified profit target without breaching certain risk parameters. This phase tests a trader’s ability to maintain discipline while aiming for consistent profitability.

Timeframe to Achieve the Profit Target

The time it takes to complete the first phase can vary widely depending on the profit target set by the firm. Generally, traders are required to achieve a profit target of either 5% or 10% of their account balance during this phase.

• For a 5% profit target: It can take anywhere from two weeks to two months. The variation in time is largely due to individual trading styles, market conditions, and the level of risk a trader is willing to take. Those who focus on high-probability setups and exercise patience often find themselves reaching the target within this timeframe.
• For a 10% profit target: Since the target is doubled, the time required can extend from four weeks to four months. This longer duration is expected as traders need more time to safely achieve the higher target without compromising on their risk management strategies.

Why can it take so long to finish the first phase of a Prop Trading Challenge?

You can take your time to finish the first phase of a prop trading challenge because there are no longer strict deadlines, allowing you to focus on high-probability setups and consistent trading rather than rushing to meet the profit target.

The Importance of Patience and Strategy

One of the significant changes in recent years is the removal of time limits on how quickly traders must complete these challenges. This shift has provided traders the luxury to focus on quality over quantity, which is crucial in avoiding the pitfalls of overtrading or chasing quick profits.

Prioritizing AAA Setups

In the absence of time pressure, you can now prioritize “AAA setups”—high-probability trades that align perfectly with your trading plan. By waiting for these ideal conditions, traders reduce the chances of entering impulsive trades that might lead to losses.

This approach not only increases the likelihood of meeting the profit target but also enhances the trader’s overall discipline and patience.

Consistency Over Quick Profits

A significant advantage of the extended timeframe is the ability to focus on consistency rather than quick wins. In trading, consistency is a more reliable indicator of long-term success than sporadic large gains. By concentrating on building a steady track record, traders can avoid the gambler’s mentality—where the lure of quick profits leads to reckless decision-making and increased risk.

The Illusion of Speed in Day Trading and Scalping

Day trading and scalping involve making multiple trades within a single day, often capitalizing on small price movements. The logic for many traders is straightforward: the more trades you make, the faster you can reach your profit target. However, this approach has several potential drawbacks that can actually slow your progress:

1. Increased Stress and Cognitive Load: The fast pace of day trading and scalping requires constant attention and quick decision-making. This high level of intensity can lead to burnout, mistakes, and emotional trading, which can result in losses that offset any gains.
2. Higher Transaction Costs: Frequent trading means paying more in spreads, commissions, and fees. Over time, these costs can eat into profits, making it harder to reach your target.
3. Market Noise and Volatility: Day traders and scalpers are more exposed to market noise—random price movements that don’t reflect underlying trends. This can lead to false signals and whipsaw trades, where the market moves against your position just as quickly as it moved in your favor.

The Case for Swing Trading

Swing trading, on the other hand, involves holding positions for several days or even weeks, aiming to capture larger price movements. Although swing traders execute fewer trades, each one typically has a higher profit potential. Here’s why swing trading might actually be more efficient:

1. Fewer but Higher-Quality Trades: Swing traders focus on capturing significant price moves, which means they can afford to be selective. This selectivity often leads to higher-quality trades, where the risk-to-reward ratio is more favorable.
2. Lower Stress and More Time for Analysis: Because swing traders aren’t glued to the screen all day, they have more time to analyze the markets and make informed decisions. This often leads to more disciplined trading and better adherence to a well-thought-out plan.
3. Reduced Transaction Costs: With fewer trades, swing traders incur lower transaction costs, preserving more of their profits. This is particularly important when working with a prop firm, where every percentage point counts towards the profit target.

If you’re interested in exploring this topic further, I recommend reading my article, “7 Reasons to Choose Swing Trading Over Day Trading/Scalping in Prop Trading Like FTMO“, where I dive deeper into the benefits of swing trading over daytrading in challenges.

Conclusion

The first phase of a prop firm challenge is not just about reaching a profit target; it’s a test of a trader’s discipline, strategy, and ability to manage risk. While the time required to complete this phase can range from two weeks to four months depending on the target, the real key to success lies in the trader’s approach.

By focusing on high-quality setups and maintaining consistency, traders increase their chances of not only passing the challenge but also building a sustainable trading career with the firm. In the world of trading, patience truly is a virtue—and it’s one that can make all the difference in passing the prop firm challenge.