Applicable Account Category
• HFT Challenge Account
Daily Loss Limit You Must Not Exceed While Trading
The Maximum Daily Drawdown is the maximum amount of loss allowed within a single trading day while trading under Global4EX HFT Challenge 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, even if the account later recovers.
🔹 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 exclusively to Global4EX HFT 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 – HFT Challenge 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: $103,400
• Maximum Daily Drawdown remains: $4,500
If Balance or Equity drops below $98,900, the Maximum Daily Drawdown is triggered.
(Daily loss is always calculated 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
• The account is permanently terminated
🔑 Key Points
• Applies exclusively to Global4EX HFT Challenge accounts
• Maximum Daily Drawdown equals 4.5% of the Initial Account Balance
• This rule functions as a immediate account failure and permanent account termination
• All open trades are closed once the limit is reached
• Trading is permanently failed and terminated. Trading does not resume at 00:00 UTC the next day
• Breaching this limit results in permanent account termination
• Both Balance and Equity are monitored continuously
• Profits do not increase the daily loss allowance
📝 Explanation
The Maximum Daily Drawdown rule protects trading capital during high-frequency trading by enforcing a strict intraday risk cap.
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.
Triggering the Maximum Daily Drawdown results in immediate account failure and termination, enforcing disciplined intraday risk control under Global4EX HFT Challenge rules.