---
title: "Maximum adverse excursion Meaning - Get Funded Now"
description: "The furthest a trade moves against you before it closes, whatever its final result. Measured per trade, it shows how much room a strategy genuinely needs…"
url: "https://getfundednow.com/glossary/maximum-adverse-excursion"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/maximum-adverse-excursion"
  pt-BR: "https://getfundednow.com/pt-br/glossary/maximum-adverse-excursion"
  fr: "https://getfundednow.com/fr/glossary/maximum-adverse-excursion"
  it: "https://getfundednow.com/it/glossary/maximum-adverse-excursion"
  de: "https://getfundednow.com/de/glossary/maximum-adverse-excursion"
disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds."
---

Drawdown and risk limits

# Maximum adverse excursion

The furthest a trade moves against you before it closes, whatever its final result. Measured per trade, it shows how much room a strategy genuinely needs rather than how much it eventually used.

Also called: MAE

GFN’s figure

Because GFN monitors equity rather than closed balance, adverse excursion counts against the daily loss limit - 3% on Instant, 5% on the 1 Step and 2 Step - while the trade is still open.

In detail

## Maximum adverse excursion, explained

MAE is the statistic that reconciles a profitable strategy with a failed evaluation. A trade that finishes at target after being 60 pips underwater consumed 60 pips of the daily allowance on the way, and on a live-monitored limit that low is what was tested.

Recording MAE across a sample is also the most reliable way to set a stop distance: a stop tighter than the typical adverse excursion converts winners into losers without reducing risk.

[Rules handbook](https://getfundednow.com/rules) · [More drawdown and risk limits](https://getfundednow.com/glossary/category/drawdown)

Related

## Terms that come with it

Most rules only make sense next to the ones they interact with. These are the entries this one depends on.

- [Intraday drawdown](https://getfundednow.com/glossary/intraday-drawdown) - The worst point an account reaches during a single trading day, measured from that day's starting level. It is what a daily loss limit monitored on equity actually tests, rather than where the day happens to finish.
- [Equity-based drawdown](https://getfundednow.com/glossary/equity-based-drawdown) - A drawdown measured against live account equity, which includes the unrealised profit and loss of every open position. The breach level can be touched while a trade is still running, before anything is closed.
- [Stop loss](https://getfundednow.com/glossary/stop-loss) - A resting order that closes a losing position at a predetermined level. It is the mechanism that turns a risk-per-trade figure into an actual limit rather than an intention.
- [Position size](https://getfundednow.com/glossary/position-size) - How many lots a trade is placed in. It is calculated from the dollar amount being risked and the stop distance, not chosen first - which is the reverse of how most traders approach it.
- [Trade journal](https://getfundednow.com/glossary/trade-journal) - A record of every trade with its reasoning, size, levels and result. It is the only way to find out whether a strategy is being followed, as distinct from whether it is working.

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Source: https://getfundednow.com/glossary/maximum-adverse-excursion
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt