Many traders enter multi-phase prop firm challenges without fully understanding how each stage differs. They see Phase One and Phase Two as simple profit checkpoints. In reality, each phase tests a different element of discipline, risk control, and consistency.
- What a Multi-Phase Challenge Is Designed to Test
- Phase One at Hola Prime
- Phase Two and the Shift Toward Stability
- Daily and Overall Loss Limits Across Phases
- Minimum Trading Day Requirements
- Transition to the Funded Account
- Why Multi-Phase Structures Build Credibility
- Common Mistakes Traders Make in Multi-Phase Challenges
- Final Thoughts
At Hola Prime, the multi-phase structure is clearly defined. Profit targets, daily loss limits, and overall drawdown rules are published in advance. This transparency allows traders to plan properly rather than react mid-challenge. Let us break down how multi-phase challenges work through Hola Prime’s account structure and risk framework.
What a Multi-Phase Challenge Is Designed to Test
A multi-phase challenge typically includes two evaluation stages before funding.
Phase One focuses on proving profitability under controlled risk. Traders must reach a defined profit target while staying within strict daily and overall drawdown limits.
Phase Two shifts emphasis toward consistency and capital preservation. The profit target is usually lower than Phase One, but the same discipline is required. This structure ensures traders can perform repeatedly rather than succeed from one aggressive move.
Phase One at Hola Prime
In Hola Prime’s two-phase evaluation model, Phase One generally requires a higher profit target than Phase Two. The structure often includes:
- A profit target around 8 percent
- A daily loss limit around 5 percent
- An overall loss limit around 8 percent
- A minimum number of trading days
- No maximum time restriction
The daily loss is calculated from the previous day’s closing balance and resets each trading day. The overall loss limit is typically static and based on the starting balance. Both realised and unrealised losses count toward these thresholds.
This stage measures controlled performance under pressure.
Phase Two and the Shift Toward Stability
Phase Two typically reduces the profit target to around 5 percent while maintaining the same risk limits.
The reduced target encourages patience. Traders who pass Phase One by taking oversized risks often struggle here if they do not adjust. Since drawdown limits remain active, capital preservation becomes the priority.
By lowering the required return but maintaining strict risk boundaries, Hola Prime reinforces long-term sustainability rather than short-term aggression.
Daily and Overall Loss Limits Across Phases
Understanding drawdown structure is critical in both phases.
The daily loss limit resets at a fixed server time each day. If breached, the account is closed immediately.
The overall loss limit applies continuously and does not reset. If equity falls below the maximum allowed drawdown level at any time, the challenge ends.
These rules apply to floating equity as well as closed trades. This ensures traders manage exposure carefully instead of holding risky positions, hoping for recovery.
Minimum Trading Day Requirements
Multi-phase challenges at Hola Prime also require a minimum number of trading days.
This rule prevents traders from passing through one large trade. It promotes steady participation and measured decision-making. There is generally no maximum time limit, allowing traders to progress at a controlled pace.
This balance between structure and flexibility supports responsible trading behaviour.
Transition to the Funded Account
Once both phases are completed successfully, traders move to a funded account.
The funded stage maintains risk discipline while introducing profit sharing. Hola Prime offers flexible payout structures. Depending on payout frequency, traders may receive profit splits ranging from approximately 80 percent up to 95 percent.
Payouts are supported by a structured processing system, including the firm’s one-hour payout framework on eligible accounts. This operational transparency strengthens trust once funding begins.
Why Multi-Phase Structures Build Credibility
Multi-phase models are designed to filter for discipline, not just profitability.
By requiring traders to demonstrate performance across separate stages, firms like Hola Prime reduce the likelihood of random or high-risk passing attempts. Consistent rules across phases create measurable benchmarks.
Transparent targets, defined loss limits, and structured progression add credibility to the evaluation model. Traders know exactly what is required before they begin.
Common Mistakes Traders Make in Multi-Phase Challenges
Many traders approach Phase One aggressively and forget that Phase Two still requires discipline.
Others misunderstand daily resets and accidentally breach limits through floating drawdown. Some focus entirely on the profit target without building a repeatable process.
The traders who succeed treat each phase as a professional assessment rather than a race.
Final Thoughts
Multi-phase prop firm challenges are not simply about reaching two profit numbers. They are structured evaluations of behaviour, risk control, and emotional stability.
Through clearly defined profit targets, daily loss resets, static overall drawdown limits, minimum trading day requirements, and transparent profit splits, Hola Prime provides a framework that traders can understand before committing capital.
When expectations are clear and rules are measurable, multi-phase challenges become less about guessing and more about disciplined execution. Traders who approach the process with structure and patience give themselves the strongest chance of progressing from evaluation to funded status.
