You have O1 steel and a coal forge... forget about soaking unless you want to rig up a muffle pipe which complicates things even more. That said, O1 needs to be soaked for full potential. So you have to get creative and hope you get lucky.
You don't want to over heat and get grain growth. My suggestion is to make the best with what you have.
Do this in a darkened shop or at night. Keep the blade edge up and moving(don't let it sit in the fire)
- Heat to bright red, let air cool to black
- Heat to red(a bit past nonmagnetic... maybe a 7-10 count), quench in warm oil(130F)
- Heat to dull red(just as the blade goes nonmagnetic), quench in warm oil(130F)
- Heat to where you begin to see slight red colour(twice) and let air cool to room temperature
Now, you can drill your holes for your handle... the blade will be soft and set up for a decent HT. When it is time for final HT...
- Slowly heat the blade(edge up) to dull red(just at nonmagnetic). Take it out of the fire and watch the colour even out. Put it back into the fire.
- Heat to red(past nonmagnetic, 7-10 count) and quench in warm oil(130F)
- Throw it in a preheated oven at 400F for 2hrs.... twice. You can water quench between cycles.
In my opinion, this is making lemonade out of lemons. Now... instead of trying to find out why I do it this way, go pick up some 1084 steel to make your next knife.
Have fun!!!
Rick