--- title: "Trailing Drawdown Rules - Get Funded Now" description: "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." url: "https://getfundednow.com/rules/trailing-drawdown" language: "en" last_modified: "2026-09-22" publisher: "Get Funded Now (getfundednow.com)" translations: es: "https://getfundednow.com/es/rules/trailing-drawdown" pt-BR: "https://getfundednow.com/pt-br/rules/trailing-drawdown" fr: "https://getfundednow.com/fr/rules/trailing-drawdown" it: "https://getfundednow.com/it/rules/trailing-drawdown" de: "https://getfundednow.com/de/rules/trailing-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 # Trailing drawdown: the floor that follows you. A trailing drawdown moves up as your equity makes new highs, so the stop-out level tightens as you profit. Instant uses a 5% trailing drawdown, $5,000 on a $100,000 simulated account. The 2 Step drawdown does not trail. Check which one your programme uses before you size a position. [Compare the three programmes →](https://getfundednow.com/challenges) · [Read the full handbook](https://getfundednow.com/rules) The rule ## What is trailing 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 trailing drawdown 5% of $100,000**: $5,000 Starts at $95,000 and follows new equity highs. - **Floor after a $6,000 run**: $101,000 Up from $95,000. The gain is protected; the room is not. - **1 Step**: 8% trailing, locks at starting balance 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. - **1 Step lock point $100,000 + $8,000**: $108,000 The equity high at which the floor reaches $100,000 and stops moving. - **2 Step**: Does not trail Fixed at $92,000 on a $100,000 account. - **Tracked on**: Equity high Not closing balance. An unrealised gain can move the floor up. 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**: Yes - 5% trailing The floor starts at $95,000 and rises with each new equity high. This is the trade-off for having no evaluation to pass. - **1 Step Applies**: Yes - 8% trailing, locks at starting balance 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. - **2 Step Does not apply**: No The 2 Step uses a 8% non-trailing drawdown. The floor sits at $92,000 and does not move. Why it exists ## The reasoning, stated plainly A trailing drawdown locks in gains on an account that was funded without an evaluation. It is a fair exchange rather than a trick: you skipped the phase that proves the strategy, so the account protects what the strategy earns as it earns it. It also means a strong run makes the account tighter, not looser, which is the part worth planning for. Worked example ## The same rule, as a number A $100,000 simulated account, because that is the size most people are deciding about. ### A trailing floor on a $100,000 Instant account Follow the floor rather than the balance. The floor is what ends the account. - **Day 1 equity**: $100,000 Floor: $95,000 - **Day 8 equity high**: $106,000 Floor moves to $101,000 - **Day 12 equity**: $102,000 Floor stays at $101,000. It never comes back down. At $102,000 you are $2,000 up on the start and $1,000 above the floor - less room than you had on day one, despite being in profit. 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. “The floor comes back down if I give profit back”: It does not. A trailing floor ratchets upward only. “It trails my balance” It follows the equity high, which includes unrealised gains on open positions. A trade that goes well and then comes back can move the floor up on the way. “Every prop account works this way” Ours do not. The 2 Step uses a fixed 8% floor, which is the opposite behaviour and a deliberate choice between the two. The full cluster ## Every question about this rule The answers our support team works from, each on its own page. - [What is relative or trailing drawdown?](https://getfundednow.com/faq/what-is-trailing-drawdown) - A relative or trailing drawdown can move as the account reaches new performance highs according to the rules of the specific program. - [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. - [Can taking a payout affect my drawdown buffer?](https://getfundednow.com/faq/does-a-payout-affect-my-drawdown-buffer) - Yes - depending on your account's drawdown structure, withdrawing profits can reduce the cushion between your current balance and the breach level. - [What is the maximum drawdown on the 1 Step?](https://getfundednow.com/faq/1-step-maximum-drawdown) - 8% as standard, or 10% with the optional drawdown add-on at checkout. [Search all questions →](https://getfundednow.com/faq) Related rules ## The rules that sit next to this one - [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 maximum drawdown?](https://getfundednow.com/rules/max-drawdown) - 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. - [Is there a withdrawal cap?](https://getfundednow.com/rules/withdrawal-cap) - Instant caps withdrawals at 2% of the account per cycle above a 3% buffer - $2,000 on a $100,000 account. 1 Step and 2 Step have no cap. - [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. 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/trailing-drawdown Facts about Get Funded Now in one file: https://getfundednow.com/llms.txt