Applicable Account Categories
• 1-Phase Account (Challenge Phase)
• 2-Phase Account (Challenge Phase)
Daily Loss Limit You Must Not Exceed While Trading
The Maximum Daily Drawdown represents the maximum loss a trader is allowed to incur within a single trading day while trading under Global4EX Challenge Phase rules.
The limit is calculated based on the Initial Account Balance and measured from the start of each trading day.
The daily loss calculation includes:
• All closed trades
• All unrealized losses from open positions
If the account Balance or Equity drops below the permitted threshold at any moment during the trading day, the Maximum Daily Drawdown is triggered.
🔹 How Is the Maximum Daily Drawdown Calculated?
At any time during the trading day, the combined loss of open and closed trades must not exceed:
• 4.5% of the Initial Account Balance
This rule applies to all Global4EX 1-Phase and 2-Phase Challenge accounts.
📐 Formula
Current Daily Loss =
Results of closed positions for the day
- Unrealized result of open positions
This value must never exceed 4.5% of the Initial Account Balance.
📊 Examples
Example 1 – Challenge Phase Account
• Initial Account Balance: $100,000
• Maximum Daily Drawdown (4.5%): $4,500
If Balance or Equity drops below $95,500, the Maximum Daily Drawdown is triggered.
Example 2 – Profitable Start of Day
• Initial Account Balance: $100,000
• Start-of-day Balance: $102,500
• Maximum Daily Drawdown remains: $4,500
If Balance or Equity drops below $99,500, the Maximum Daily Drawdown is triggered.
(Daily loss is always based on the Initial Balance, not accumulated profits.)
Example 3 – Loss Progression During the Day
• Trading day starts at 00:00 UTC
• Initial Account Balance: $100,000
• Maximum Daily Drawdown: $4,500
If Balance or Equity reaches $95,500:
• All open trades are automatically closed
• All trading activity is permanently failed and terminated
At 00:00 UTC the next day:
• The account is permanently terminated
🔑 Key Points
• Applies to Global4EX 1-Phase and 2-Phase Challenge accounts
• Maximum Daily Drawdown equals 3% of Initial Account Balance
• Triggering the rule does not fail or terminate the account
• All open trades are closed once the limit is reached
• Trading is permanently failed and terminated
• Trading resumes automatically at 00:00 UTC the next day
• Breaching this limit results in permanent account termination
• Both Balance and Equity are monitored continuously
📝 Explanation
The Maximum Daily Drawdown rule is designed to protect traders from excessive intraday drawdowns while preserving account eligibility.
When the daily loss threshold is reached:
• All positions are closed automatically
• Trading is permanently failed and terminated
• The account is permanently failed
Trading does not resume. The account is permanently terminated.
Unlike maximum loss violations, triggering the Maximum Daily Drawdown does not result in account termination, but instead enforces:
• Emotional discipline through forced pauses
• Consistent behavior required to qualify for funding
Compliance with the Maximum Daily Drawdown rule is mandatory at all times during the Challenge Phase.