FundingPips Launches '2 Step Flex' Evaluation With More Lenient Drawdown Rules

What happened

Proprietary trading firm FundingPips has officially launched a new evaluation program called "2 Step Flex." The program follows the familiar two-phase evaluation structure but makes a key change to the drawdown rules. Instead of the common 5% daily loss limit and 10% overall drawdown, the Flex model offers a 4% daily loss limit and a 12% maximum drawdown.

According to the firm's social media announcements, the new model is intended to give traders more flexibility in managing their daily positions. The evaluation fee for the new program is refunded in full upon the first payout, a common practice in the industry. The core structure remains a two-phase challenge where traders must hit a profit target without breaching the new drawdown limits.

Why it matters for traders

The primary appeal of the 2 Step Flex model is the higher daily drawdown limit. While the difference between 4% and the industry standard of 5% may seem small, it provides a significantly wider buffer for strategies that involve higher intraday volatility. This can be particularly beneficial for news traders or those who use scaling strategies that can temporarily increase open-position drawdowns.

However, this comes with a trade-off. The overall maximum drawdown is set at 12%, which is only slightly more generous than the standard 10% offered by many competitors, but less than what some firms offer. This means traders get more daily room but must still manage their overall account risk carefully. The change reflects a growing trend in the industry where firms are creating multiple product tiers to appeal to different trading styles, a key factor covered in our guides at /education.

How it compares to competing firms

The "2 Step Flex" program positions FundingPips directly against the established offerings of industry leaders. The most popular programs at firms like FTMO and E8 Markets are built around the 5% daily and 10% overall drawdown rules. By deviating from this, FundingPips is creating a distinct value proposition.

For instance, a trader on a $100,000 FTMO account has to stay above $95,000 in equity or balance at the end of the day. A trader on the new FundingPips Flex account would have their limit at $96,000. However, the FTMO trader's account is breached entirely if it touches $90,000, whereas the FundingPips trader has a cushion down to $88,000.

This specific combination of rules is a calculated move. It may attract traders who have failed other challenges due to the restrictive daily limit, while the firm is still protected by a relatively standard overall drawdown. It carves out a niche between ultra-lenient firms and the strict standard models. To see how these rules stack up in detail, traders can visit our /vs/ftmo-vs-fundingpips comparison page.

Other firms like The 5%ers have long offered different pathways, and this move shows FundingPips is also embracing a multi-product strategy to capture more market share from a diverse pool of traders.

What to watch next

The success of the 2 Step Flex model will depend on trader adoption and, ultimately, the payout rates from this cohort. If a significant number of traders migrate to this new model, it could pressure other firms like Blue Guardian or Alpha Capital Group to introduce their own "flex" variations to remain competitive.

ProprietaryTrading.com will monitor the performance and reception of this new program. Key metrics to watch will be its popularity relative to FundingPips’ standard accounts and whether it leads to a measurable difference in pass rates and funded trader success. For now, it offers traders another distinct choice in the increasingly crowded marketplace, which can be navigated using our /directory and /compare tools.