Skip to main content

Prohibited Trading Strategies

A clear overview of trading strategies and practices that are not allowed on FundedSquad accounts.

FundedSquad has strict rules against trading strategies or activities that attempt to exploit platform conditions, manipulate results, or take excessive and unsustainable risks. These practices may result in profit removal, payout rejection, account suspension, or termination.


Platform and Price Exploitation

Exploiting platform, server, or demo-environment issues, including freezes or technical glitches.

Trading on delayed, outdated, or incorrect price feeds.

Using latency arbitrage or other methods to profit from pricing delays between brokers or data feeds.

Using arbitrage strategies designed to exploit price differences.


Hedging

Hedging is strictly prohibited. This includes opening opposing BUY and SELL positions on the same asset:

  • Within the same trading account.

  • Between multiple accounts owned by the same trader.

  • Between accounts owned by different traders.

  • Between a FundedSquad account and an account with another firm, whether both accounts are owned by the same person or by different people.


Martingale Trading

Martingale trading strategies are strictly prohibited.

This includes any strategy that increases lot size or trade volume after a losing trade in an attempt to recover previous losses.

Martingale and similar grid-based recovery systems are considered high-risk trading practices and are not allowed.

Using Martingale or similar recovery strategies may result in account termination and forfeiture of associated profits or payouts.


Layering

You must not have 3 or more open positions at the same time on the same asset. This rule is designed to prevent excessive exposure and risk buildup on a single trading pair.


Excessive Margin Usage / Gambling

You must not use more than 70% of your available margin in a single trade or across your active trades.

Exceeding 70% margin usage is considered excessive-risk or gambling behavior, regardless of whether the trade is profitable or not.


All-or-Nothing Trading

Using full or excessive account margin, extremely large lot sizes, or taking positions without reasonable consideration of your account size and market conditions is prohibited.


Third-Party Strategies and Expert Advisors

You must not use third-party strategies, off-the-shelf trading systems, or Expert Advisors (EAs) that are marketed or designed specifically to pass prop firm assessment accounts.

If there are concerns about the ownership or originality of your EA, FundedSquad may require you to provide proof that the EA is your own, including its source code, at our discretion.

Using a prohibited third-party strategy or EA may result in a breach of your account and/or forfeiture of rewards or payouts.


High-Frequency Trading

High-Frequency Trading (HFT), tick scalping through bots, and strategies designed to take advantage of extremely short-term price movements or execution delays are prohibited.


FundedSquad reserves the right to review trading activity and take appropriate action when prohibited or abusive trading practices are detected. These rules are in place to maintain a fair, disciplined, and sustainable trading environment.

Did this answer your question?