---
title: "Peak-to-trough - Meaning & GFN's Figure - Get Funded Now"
description: "The decline from an equity curve's highest point to its lowest subsequent point before a new high is made. It is the standard way of stating how deep a…"
url: "https://getfundednow.com/glossary/peak-to-trough"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/peak-to-trough"
  pt-BR: "https://getfundednow.com/pt-br/glossary/peak-to-trough"
  fr: "https://getfundednow.com/fr/glossary/peak-to-trough"
  it: "https://getfundednow.com/it/glossary/peak-to-trough"
  de: "https://getfundednow.com/de/glossary/peak-to-trough"
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

# Peak-to-trough

The decline from an equity curve's highest point to its lowest subsequent point before a new high is made. It is the standard way of stating how deep a strategy's worst historical losing run was.

GFN’s figure

A strategy whose historical peak-to-trough exceeds 8% will eventually breach a GFN 2 Step account, and one exceeding 5% will breach Instant sooner, because that floor also trails.

In detail

## Peak-to-trough, explained

Peak-to-trough is what a backtest means when it reports a maximum drawdown figure, and it is measured after the fact across the whole sample. A prop firm's maximum drawdown rule is the same shape of measurement applied live, with a hard stop attached.

Comparing the two is the most useful pre-purchase check available: if a strategy's historical peak-to-trough is deeper than the account's drawdown allowance, it will eventually breach on an ordinary losing run.

[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.

- [Equity curve](https://getfundednow.com/glossary/equity-curve) - A chart of account equity over time. Its slope shows the rate of return, its smoothness shows consistency, and its deepest dip is the peak-to-trough drawdown a risk limit would have had to absorb.
- [Maximum drawdown](https://getfundednow.com/glossary/maximum-drawdown) - The total loss an account may take before it is failed. Expressed as a percentage of the starting balance, it sets a floor: touch it and the account breaches, whatever the account has made up to that point.
- [Drawdown recovery](https://getfundednow.com/glossary/drawdown-recovery) - The gain required to return an account to its previous peak after a loss. Recovery is not symmetrical: a 10% loss needs an 11.1% gain to undo, and a 50% loss needs 100%.
- [Backtesting](https://getfundednow.com/glossary/backtesting) - Running a strategy over historical data to estimate how it would have performed. Useful for rejecting ideas, weak as evidence for accepting them, because the result is fitted to data already seen.
- [High-water mark](https://getfundednow.com/glossary/high-water-mark) - The highest level an account has ever reached. On a trailing drawdown it is the reference point the floor is measured down from, so every new high permanently moves the breach level upward.

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Source: https://getfundednow.com/glossary/peak-to-trough
Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt