What Is It?
Microscalping refers to capturing extremely small price movements using very large position sizes within extremely short timeframes, often just a few seconds.
This tactic often attempts to exploit simulated fill mechanics rather than execute a sustainable trading strategy.
What Happens If I Microscalp?
10FOUR uses automated systems to detect microscalping patterns.
Accounts may be flagged if:
More than 50% of profits are generated from trades held for 10 seconds or less.
If confirmed:
A manual review will occur
A warning may be issued
Continued violations may lead to profit removal or account restrictions
Example
A trader opens a position on NQ, holds it for 6 seconds, and closes it for a $200 gain.
They repeat this style of trading throughout the session, generating 8 out of 10 winning trades in under 10 seconds.
At the end of the session, 80% of their total profits came from trades held for 10 seconds or less. This would be flagged as microscalping.
Why It Is Prohibited
Microscalping is not a transferable strategy to real market environments.
Allowing it would:
• Undermine the evaluation process
• Make it difficult to identify truly profitable traders
• Threaten the sustainability of the firm