---
title: "Trend following - Meaning & GFN's Figure - Get Funded Now"
description: "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…"
url: "https://getfundednow.com/glossary/trend-following"
language: "en"
last_modified: "2026-09-22"
publisher: "Get Funded Now (getfundednow.com)"
translations:
  es: "https://getfundednow.com/es/glossary/trend-following"
  pt-BR: "https://getfundednow.com/pt-br/glossary/trend-following"
  fr: "https://getfundednow.com/fr/glossary/trend-following"
  it: "https://getfundednow.com/it/glossary/trend-following"
  de: "https://getfundednow.com/de/glossary/trend-following"
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

# 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.

GFN’s figure

Against a GFN 8% 2 Step floor, a trend strategy risking 0.5% per trade can absorb 16 consecutive losses; the same strategy at 2% per trade absorbs four.

In detail

## Trend following, explained

The distribution is the challenge on an evaluation. A trend strategy can spend weeks in a shallow drawdown of small losses before the trade that pays for them arrives, and a fixed floor has to absorb that stretch.

It suits a non-trailing drawdown considerably better than a trailing one, because a trailing floor tightens during the profitable run and then sits close behind the inevitable retracement.

[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.

- [Mean reversion](https://getfundednow.com/glossary/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.
- [Risk-reward ratio](https://getfundednow.com/glossary/risk-reward-ratio) - The size of a trade's target relative to its stop, expressed as a ratio. A 2:1 trade risks one unit to make two, which sets the win rate the strategy needs in order to be profitable.
- [Maximum consecutive losses](https://getfundednow.com/glossary/maximum-consecutive-losses) - The longest unbroken run of losing trades in a sample. Multiplied by risk per trade it gives the drawdown a strategy has historically produced, which is the figure a fixed floor has to absorb.
- [Expectancy](https://getfundednow.com/glossary/expectancy) - The average result of a trade over a large sample, combining win rate and average win and loss. A positive expectancy is necessary for a strategy to work and not sufficient for it to pass an evaluation.
- [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.

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Source: https://getfundednow.com/glossary/trend-following
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