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Prohibited Trading Strategies
Prohibited Trading Strategies
Updated this week

FundedSquad strictly prohibits any trading strategy that is considered "cheating", which typically involves exploiting the characteristics of demo accounts to generate risk-free or artificially inflated profits. The following strategies are strictly forbidden:

-Platform or data freezing due to a demo server error

-Trading on delayed data feeds or using outdated price charts

-Tick scalping, high-frequency trading, and arbitrage bots

-Latency and hedge arbitrage

-Cost averaging (averaging up or averaging down)

Reverse trading, which involves immediately opening a position in the opposite direction after closing a losing trade on the same asset. To comply, traders must wait at least 20 minutes before re-entering a trade after a losing position.

Martingale strategies, which involve exponentially increasing position sizes to recover losses.

Additionally, excessive risk-taking, such as utilizing full margin or disproportionately large lot sizes, is prohibited. These practices create an unsustainable trading approach that prioritizes short-term gains over long-term risk management and can result in erratic account performance.

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