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Paper levels refer to the horses breeding quality.

Performance testing refers to training and how long a horse will train for. A horse typically levels off when it’s age reaches its PT score. Once it reaches that point the horse starts to level off in training and will earn less and less each week until eventually it will earn a fraction of a point per training session.

The higher PT horses will learn more per training session to start out so will reach higher levels of showing, they usually rocket through the lower levels and don’t earn many points growing up but once they reach the higher levels will pick up more points per show to make up for it.

The lower PT horses learn less per training session so usually stick in a level for long enough to earn points as they raise through the ranks but they won’t get as high before they level off.

Well that's a bummer. But thanks anyway! At least I know now to look for how fast the horses go through showing.