Some practices are prohibited because they exploit the simulated environment or get around the limits of a plan. Using any of them can lead to deduction of simulated results, disqualification and termination of the account (GTC §8.1 and §16.2).
Prohibited practices
Gap trading: setting up trades to profit from the price jump when the market reopens, for example opening a position just before the close only to catch the gap. Holding a position over the weekend is allowed (GTC §8.3).
High-frequency trading (HFT): opening and closing many orders within seconds, automated or not.
Server spamming: sending an excessive number of orders or order changes to the server.
Latency arbitrage: taking advantage of the delay between the platform price and the price from another source.
Toxic flow: a trading pattern that only profits from flaws in the simulated environment, not from market analysis.
Hedging: holding a buy and a sell on the same instrument, or on correlated instruments, at the same time, in the same account or in different accounts.
Long/short arbitrage and reverse arbitrage: opening opposite positions in different accounts or platforms so that one offsets the other.
Tick scalping: trades lasting a few seconds to capture minimal price moves.
Grid trading: a grid of orders at fixed price intervals, buying and selling without a defined trade idea.
Opposing accounts: trading one account against another, yours or someone else's.
Combining or replicating accounts to obtain a size, drawdown or allocation that the plan does not offer. Example: trading two US$ 25,000 Instant accounts as if they were one US$ 50,000 account.
Aggregated risk across accounts
Identical or similar positions, on the same instrument or on correlated instruments, in more than one account count as a single risk (GTC §8.4). The Risk team may cap this risk, deduct simulated results and disqualify the accounts.
Robots (EAs)
The robots of our CEO Rafael Mascarenhas, through Take Tips IA, are allowed on our desk, including during the evaluation. The plan rules still apply. A third-party robot that depends on external signals follows the signals rule below (GTC §8.2).
Signals, copy trading and third-party management
Using signals, third-party copy trading or letting someone else trade your account is prohibited (GTC §8.2). Details: What is the policy on using signals or copy trading? Multiple accounts and merging: Can I have multiple accounts at the same time?
If the Risk team identifies a prohibited practice, the account may not advance to Phase 3, the results of the trades involved may be deducted and the account may be terminated.