At MILTRADERS, rule violations fall into two categories:
Soft Breach (Flag for Review): A soft breach triggers an automatic flag on your account. It does not result in immediate closure but does prompt a review by our risk team.
Examples of soft breaches: Micro-scalping (trades held under 10 seconds), news gambling patterns (single oversized trades right before a major release with no other activity), suspicious login activity (potentially flagged for VPN documentation review).
If your trading reflects a legitimate, consistent strategy, a flag will typically not affect your account standing.
Hard Breach (Immediate Account Closure): A hard breach results in immediate account closure and forfeiture of all profits, with no warnings or second chances.
Examples of hard breaches: Account sharing or copying another trader's trades (verified), use of bots, EAs, or automated trading systems, exceeding the EOD Trailing Drawdown, confirmed gambling behavior, chargebacks or payment fraud. Note: copying your own trades across your own MILTRADERS accounts, using the copy trading tools available directly on the platform, is allowed and is not a breach.
Hedging and high-impact news: a graduated scale
Two rules are handled separately, on a graduated scale rather than as an immediate hard breach. Both are detected automatically and you are notified by email.
Hedging (on every account type): on the first violation, all profits made on that trading day are cancelled on every account involved. Repeated violations lead to the closure of the accounts involved and a ban from MILTRADERS. See "Is Hedging Allowed on MILTRADERS?" for the Product Groups and the 10-second grace period.
High-impact news on Zero funded accounts: the profits generated by the trades concerned are removed. Repeated violations can lead to the closure of the accounts involved and a ban from MILTRADERS.
Trading with discipline and a clear strategy is the best way to stay clear of both types of breach.