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1-Phase and 2-Phase Challenge: Trading Restrictions

Updated over 3 weeks ago

The following restrictions apply to 1-Phase and 2-Phase Challenge accounts:

  1. High-Frequency Trading (HFT) / Latency Arbitrage
    • Executing trades that exploit delays in price feeds or server latency. This includes the use of algorithms or systems that rely on speed advantages to manipulate execution.

  2. News Trading (±5 Minutes)
    • Entering or exiting positions immediately before, during, or after high-impact economic news releases in order to capitalize on volatile price movements. This includes all high-impact news days.

  3. Grid Trading and Martingale Strategies
    • Placing layered trades in a grid formation or using position-sizing methods such as Martingale that exponentially increase risk exposure.

  4. Tick Scalping / Ultra-Short-Term Scalping / Rapid Re-Entry
    • Each trade must remain open for more than 15 seconds.

    • Trades closed in 15 seconds or less will be considered tick scalping and may result in a violation.

    • Re-entering trades within 15 seconds is also considered a violation.

    • This rule applies to opening, closing, and re-entering trades to prevent ultra-short-term scalping.

  5. Copy Trading / Mirror Trading
    • Copying trades (manually and/or automatically) is strictly prohibited.

  6. Reverse Arbitrage / Price Feed Manipulation
    • Exploiting differences between demo and live pricing environments or between liquidity providers with the intent to generate risk-free profits or manipulate results.

  7. Trade Passing / Collusive Trading
    • Coordinating trades between multiple accounts (including third-party accounts) to manipulate exposure, pricing, or performance.

  8. Hedging Across Multiple Accounts
    • Simultaneously opening opposing positions (e.g long and short) to bypass risk rules or evaluation criteria.

  9. Weekend Holding (Unless Permitted by Account Type)
    • Holding open positions over the weekend where it is not expressly allowed, due to the increased risk of market gaps and illiquidity.

  10. Trade Stacking
    • Trade stacking must not exceed three (3) entries at any given time.

  11. Stop Loss

    •A stop loss is mandatory on P1, P2 accounts and must be set within 1 minute of opening the trade.

Additional Prohibited Trading Styles:
• Hedging (not allowed under any circumstances, whether within the same account or across multiple accounts)
• Grid trading
• Account sharing

• One side betting

• Gambling

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