---
title: "Sortino ratio - Meaning & GFN's Figure - Get Funded Now"
description: "A variant of the Sharpe ratio that counts only downside volatility. Large gains no longer lower the score, so it measures the variability a trader…"
url: "https://getfundednow.com/glossary/sortino-ratio"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/sortino-ratio"
  pt-BR: "https://getfundednow.com/pt-br/glossary/sortino-ratio"
  fr: "https://getfundednow.com/fr/glossary/sortino-ratio"
  it: "https://getfundednow.com/it/glossary/sortino-ratio"
  de: "https://getfundednow.com/de/glossary/sortino-ratio"
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

# Sortino ratio

A variant of the Sharpe ratio that counts only downside volatility. Large gains no longer lower the score, so it measures the variability a trader actually minds rather than all of it.

GFN’s figure

Downside variability is what GFN's rules test: the daily loss limit measures a single day's worst point, and the maximum drawdown measures the worst run.

In detail

## Sortino ratio, explained

Sortino is the more honest measure for a strategy with an asymmetric return profile - trend following, for example, where the upside outliers are the point of the strategy.

Like Sharpe it is a summary of the whole sample, so it can look healthy while containing one stretch deep enough to breach a hard floor.

[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.

- [Sharpe ratio](https://getfundednow.com/glossary/sharpe-ratio) - Return above a benchmark cash rate, divided by the volatility of those returns. It measures how much variability was accepted per unit of return, so a smoother equity curve scores higher.
- [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.
- [Peak-to-trough](https://getfundednow.com/glossary/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.
- [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.
- [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%.

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Source: https://getfundednow.com/glossary/sortino-ratio
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