--- title: "Maximum Drawdown Rules - Get Funded Now" description: "Maximum drawdown is 5% on Instant and 8% on 1 Step and 2 Step - $5,000 or $8,000 on a $100,000 simulated account, measured on equity." url: "https://getfundednow.com/rules/max-drawdown" language: "en" last_modified: "2026-09-22" publisher: "Get Funded Now (getfundednow.com)" translations: es: "https://getfundednow.com/es/rules/max-drawdown" pt-BR: "https://getfundednow.com/pt-br/rules/max-drawdown" fr: "https://getfundednow.com/fr/rules/max-drawdown" it: "https://getfundednow.com/it/rules/max-drawdown" de: "https://getfundednow.com/de/rules/max-drawdown" 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." --- Risk limits # Maximum drawdown, and where it stops you. Maximum drawdown is the total loss an account may take before it is closed. It is 5% on Instant and 8% on 1 Step and 2 Step, which is $5,000 or $8,000 on a $100,000 simulated account. It is measured on equity, so an open position can breach it. [Compare the three programmes →](https://getfundednow.com/challenges) · [Read the full handbook](https://getfundednow.com/rules) The rule ## What is maximum drawdown? Percentages are what the industry publishes. These are the same rules in dollars, worked on a $100,000 simulated account, so there is nothing left to convert. - **Instant max drawdown 5% of $100,000**: $5,000 Trailing. The floor starts at $95,000 and follows new equity highs upward. - **1 Step max drawdown 8% of $100,000**: $8,000 The floor starts at $92,000 and trails $8,000 below your equity high. Once equity peaks at $108,000 the floor reaches your $100,000 starting balance and locks there - it does not trail past it. Rises to 10% ($10,000) with the optional drawdown add-on at checkout. - **2 Step max drawdown 8% of $100,000**: $8,000 Non-trailing. The floor is fixed at $92,000 however far into profit you run. - **2 Step free retake 4% of $100,000**: $4,000 Half the room of a first attempt. - **Measured on**: Equity Open positions count. A floating loss can breach the account before you close it. Plan applicability ## Which programmes this rule applies to Our three programmes do not share one rulebook. This table is the part of the page to read before you buy. - **Instant Applies**: 5% trailing ($5,000) Starts at $95,000 on a $100,000 account and trails your equity high upward. - **1 Step Applies**: 8% trailing, locks at starting balance ($8,000) The floor starts at $92,000 and trails $8,000 below your equity high. Once equity peaks at $108,000 the floor reaches your $100,000 starting balance and locks there - it does not trail past it. 8% is standard; 10% needs the optional add-on at checkout. - **2 Step Applies**: 8% fixed ($8,000) Never trails. The stop-out level sits at $92,000 from day one and stays there. Why it exists ## The reasoning, stated plainly Maximum drawdown is the limit on the whole account rather than the day. Without it a trader could lose a little every day indefinitely and never technically breach anything. It is the rule that decides how long a losing run can go on, which makes it the number worth knowing before the run starts rather than during it. Worked example ## The same rule, as a number A $100,000 simulated account, because that is the size most people are deciding about. ### The same 8% on two programmes Both the 1 Step and the 2 Step publish 8%. What the figure does once you are in profit is not the same. - **2 Step floor at $100,000**: $92,000 Fixed. It does not move. - **2 Step floor after a $10,000 run**: $92,000 Still fixed. Your cushion is now $18,000 rather than $8,000. - **Instant floor at $100,000**: $95,000 Trailing, and only $5,000 below the start. - **Instant floor after a $6,000 run**: $101,000 The floor has followed the equity high up. A trailing drawdown protects gains you have already made and tightens the account as you profit. A fixed one gives you more room the further you run. Neither is better in the abstract - they suit different traders, which is why we publish both. Commonly misread ## What traders get wrong here Every item below has cost somebody an account. They are published for that reason rather than for completeness. “A new trading day clears it” It does not. The daily loss limit resets each day; maximum drawdown is cumulative over the life of the account. “Profits later on cancel an earlier breach” A hard breach is recorded at the moment the level is crossed. Recovering afterwards does not reverse it. “Only closed trades matter” The measurement is on equity. An open position in drawdown can breach the account before you have closed anything. The full cluster ## Every question about this rule The answers our support team works from, each on its own page. - [What is Maximum Drawdown?](https://getfundednow.com/faq/what-is-maximum-drawdown) - Maximum Drawdown is the total amount your account is permitted to decline before the account is breached. - [Is Maximum Drawdown the same on every GFN plan?](https://getfundednow.com/faq/is-max-drawdown-the-same-on-every-plan) - No. Different plans can use different Maximum Drawdown limits and calculation methods. - [Can open positions cause a Maximum Drawdown breach?](https://getfundednow.com/faq/can-open-positions-breach-max-drawdown) - Yes. Account equity matters when monitoring trading risk. - [What happens if the account touches the Maximum Drawdown level?](https://getfundednow.com/faq/what-happens-if-i-touch-max-drawdown) - If your account reaches or exceeds the defined hard breach limit according to the program's calculation method, the account can be breached. - [Can profitable trades offset a previous breach?](https://getfundednow.com/faq/can-profits-offset-a-previous-breach) - No. Once a hard breach has occurred, a later market recovery does not undo it. - [Does a new day mean yesterday's losses disappear from my overall drawdown?](https://getfundednow.com/faq/does-a-new-day-clear-my-overall-drawdown) - No. The Daily Loss Limit and Maximum Drawdown are separate rules - the daily calculation resets while your overall drawdown position does not. [Search all questions →](https://getfundednow.com/faq) Related rules ## The rules that sit next to this one - [What is trailing drawdown?](https://getfundednow.com/rules/trailing-drawdown) - A trailing drawdown follows your equity high upward. Instant uses 5% trailing - $5,000 on a $100,000 account. The 2 Step drawdown never trails. - [What is static, non-trailing drawdown?](https://getfundednow.com/rules/non-trailing-drawdown) - The 2 Step uses a 8% non-trailing drawdown: the stop-out level sits at $92,000 on a $100,000 account and never moves. - [What is the daily loss limit?](https://getfundednow.com/rules/daily-loss-limit) - The daily loss limit is 3% on Instant and 5% on 1 Step and 2 Step - $3,000 or $5,000 on a $100,000 simulated account. - [Can I hold trades overnight and over the weekend?](https://getfundednow.com/rules/overnight-and-weekend) - Overnight and weekend holding is permitted on all three programmes where the account and the underlying market allow it. Gap risk stays with the trader. - [Instant: the full rule sheet](https://getfundednow.com/challenges/instant) - Every objective on the Instant programme, in dollars, at all six account sizes. - [1 Step: the full rule sheet](https://getfundednow.com/challenges/1-step) - Every objective on the 1 Step programme, in dollars, at all six account sizes. - [2 Step: the full rule sheet](https://getfundednow.com/challenges/2-step) - Every objective on the 2 Step programme, in dollars, at all six account sizes. Ready when you are ## Your capital stays yours. The risk is ours. One evaluation fee, no time limits and up to 90% of simulated profits. Pick an account size and your credentials arrive by email within minutes. [Start your challenge →](https://getfundednow.com/challenges) · [Read the rules](https://getfundednow.com/faq) No subscriptions or hidden fees Payouts every 14 days $400,000 max total allocation --- Source: https://getfundednow.com/rules/max-drawdown Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt