---
title: "Mean reversion - Meaning & GFN's Figure - Get Funded Now"
description: "Trading on the expectation that a price stretched away from its average will return to it. Win rates are typically high and individual losses large…"
url: "https://getfundednow.com/glossary/mean-reversion"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/mean-reversion"
  pt-BR: "https://getfundednow.com/pt-br/glossary/mean-reversion"
  fr: "https://getfundednow.com/fr/glossary/mean-reversion"
  it: "https://getfundednow.com/it/glossary/mean-reversion"
  de: "https://getfundednow.com/de/glossary/mean-reversion"
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."
---

Strategy and performance

# Mean reversion

Trading on the expectation that a price stretched away from its average will return to it. Win rates are typically high and individual losses large, which is the mirror image of trend following.

GFN’s figure

A high win rate does not survive an unstopped loss against a GFN daily limit: one trade that runs $5,000 against you on a $100,000 1 Step account ends the day regardless of how the previous twenty went.

In detail

## Mean reversion, explained

The risk profile is what makes mean reversion dangerous on a prop account: a long sequence of small wins builds confidence and position size just before the move that does not revert.

Because the losses are the outsized ones, a hard stop matters more here than in almost any other style. Without it, the strategy's worst trade is open-ended.

[Rules handbook](https://getfundednow.com/rules) · [More strategy and performance](https://getfundednow.com/glossary/category/strategy)

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.

- [Trend following](https://getfundednow.com/glossary/trend-following) - Entering in the direction of an established move and holding until it ends. Win rates are typically below half, and the result depends on a small number of large winners covering many small losses.
- [Averaging down](https://getfundednow.com/glossary/averaging-down) - Adding to a losing position to improve the average entry price. It lowers the break-even level and raises the size of the loss if the position keeps moving against you.
- [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.
- [Win rate](https://getfundednow.com/glossary/win-rate) - The proportion of trades that finish profitable. On its own it says nothing useful - a 90% win rate with one outsized loss and a 35% win rate with large winners can produce the same result.
- [Profit factor](https://getfundednow.com/glossary/profit-factor) - Gross profit divided by gross loss across a sample of trades. A profit factor above 1 means the strategy made money; below 1 means it lost, whatever the win rate suggests.

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Source: https://getfundednow.com/glossary/mean-reversion
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt