Your mileage may vary; when I was finishing Grade 1 myself I had a lot of self questioning on whether to move on or stay longer and reinforce, and what finally decided it for me was posting my very first AVOYP (without the V part on that one) and letting the community comment on it.
The reception was positive and I was encouraged to move on, which I did 
I had, of course, checked all items on the “How to Pass Grade 1” checklist that @GrumpyMac referred to above. With perhaps the only exception being the “can play at a party anytime” - since I could not sing and play at the same time (still can’t, btw), you’d never see me volunteering at a party. But I did have back then a Youtube playlist with around 10-15 songs that I could play along from beginning to end from memory and that was good enough for me on that count.