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Prohibited trading strategies that violate our Terms of Use
Prohibited trading strategies that violate our Terms of Use

Prohibited trading strategies that violate our Terms of Use

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Written by Support
Updated over a week ago

We don’t restrict your trading style or strategy. However, cheating or abusing the simulated environment is not allowed and violates our Terms of Use.

We do not allow cheating

Strategies that are deemed “cheating” or not reflective of actual market conditions are not allowed and will result in a breach of our Terms of Use. Strategies that only generate risk-free, consistent profits in a demo environment are not allowed, as they cannot be replicated in the Live Markets. Funded Traders must treat their accounts as if they are live. Any use of such strategies will result in account closure.

Strategies that are prohibited

Using any of these strategies will lead to account breach and potential banning from our platform.

  • Grid Trading

    • Grid trading is prohibited due to the risks it poses. It involves placing inverse buy and sell orders of the same instrument with the same or similar risk, which can lead to market manipulation, over-leveraging, market instability, and a potential risk-free profit. To prevent large drawdowns and over-leveraging, it is essential to have a well-defined risk management strategy.

  • Martingale Trading

    • PIP Traders Funding’s Terms of Use prohibit the use of Martingale as a trading strategy. Martingale is a system based on increasing the lot size after each loss, with the expectation that a winning trade will recoup all previous losses and yield a profit. This type of activity is considered gambling and is highly risky, as it can result in substantial drawdowns and the loss of all capital.

    • It is essential to have a professional risk management strategy in place to protect your account and our capital.

  • High-Frequency Trading (HFT) strategy on funded accounts.

    • You can see more details on our dedicated collection for HFT topics here.

  • Collusion Between Users

    • An individual or group of individuals may engage in a trading strategy known as cross-account trading or collusion. This involves opening multiple accounts within a financial institution and placing trades in the same direction (i.e., buying or selling on the same asset across all accounts). This practice is considered a form of market manipulation.

  • Hedging or Group Hedging Across Multiple Accounts

    • Individuals or groups can use a trading strategy called hedging or group hedging, where they open multiple accounts with a financial institution and place trades in opposite directions (i.e., buy and sell) on the same asset. In a real market, this would not yield any profit as the positions are hedged in both directions. However, when trading with a funding company, one account could generate a loss for the company while the other account could generate a profit, resulting in risk-free profits. This strategy is not allowed and will lead to a ban from PIP Traders Funding.

  • Use of a Delayed Data Feed

    • Using a data feed that has a delay or lag in providing market data, such as stock prices or trading volumes, gives a trader an advantage over other traders who must use real-time market data. This is not allowed in the financial market, as it is considered unethical.

  • Trading on Delayed Charts

    • Trading on charts with a delay or lag in their updates is considered unethical and is not in line with the operations of the real financial market.

Soft Breaches / Warnings

The following are examples of trading behaviors and activities that will result in soft breaches and warnings, which if not addressed promptly, could escalate to the breach of your account and possible ban from PIP Traders Funding.

  • Use of Platform or Data Freezing Due to a Demo Server Error

    • The use of platform or data freezing due to a demo server error that can lead to unfair advantages and misleads the traders.

    • If we encounter server errors that prevent traders from closing trades for stop loss or take profit, we will investigate our logs and work with affected traders to resolve the issue. To help us identify any freezing issues, please take screenshots or screen recordings. Abusing the platform due to a demo server error will result in a possible permanent ban from PIP Traders Funding.

  • News Trading

    • News trading is a strategy employed by traders to take advantage of the market’s reaction to economic or political news and events. This could include interest rate decisions, GDP reports, and political announcements. However, news trading can be risky, as the market’s response to news events is often unpredictable and could potentially lead to significant losses.

    • To reduce this risk, PIP Traders Funding has certain restrictions for Funded Accounts when trading during major macroeconomic reports. This includes not being filled at an unrealistic price due to the volatility of the event.

    • See more details here.

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