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Are there restrictions/prohibitions on trading strategies?

Restricted and prohibited trading strategies.

Written by TradePrime Admin

All trading strategies are permitted, provided they comply with our risk management rules and trading policies.

However, the following practices are strictly prohibited:

Exploiting Errors or Latency in Pricing/Platform

Explanation: Taking advantage of delays, pricing errors, or platform malfunctions to generate profit.

Example: Exploiting incorrect currency pair pricing caused by a platform glitch.


Utilizing Non-Public and/or Insider Information

Explanation: Trading based on confidential or non-public information.

Example: Using knowledge of a private merger announcement to profit in the market before the information becomes public.


Front-Running of Trades Placed Elsewhere

Explanation: Placing trades based on advance knowledge of large market-moving orders placed by others.

Example: Entering a trade before a large institutional order is executed in anticipation of the resulting price movement.


Jeopardizing Broker Relationships or Trade Cancellation

Explanation: Engaging in trading activity that may damage the company’s broker relationships or result in trades being voided.

Example: Repeatedly placing abnormal or disruptive trades that trigger broker risk management systems.


Creating Regulatory Issues for the Broker

Explanation: Trading in ways that may violate financial regulations or create compliance concerns.

Example: Trading restricted instruments or markets without the appropriate permissions or licenses.


Using Third-Party, Off-the-Shelf, or Marketed Strategies

Explanation: Using publicly sold or commercially marketed strategies, particularly those designed specifically to pass challenge accounts.

Example: Using a widely distributed Expert Advisor (EA) marketed as a “prop firm pass strategy.”


Changing Strategies After Account Funding

Explanation: Using one strategy during evaluation and switching to a materially different strategy after becoming funded.

Example: Using a conservative strategy to pass the evaluation phase and then switching to aggressive high-risk scalping once funded.


Utilizing Martingale or Average-Down Strategies

Explanation: Increasing position sizes or adding to losing trades in an attempt to recover losses.

Example: Doubling trade size after each losing trade to recover previous losses quickly.


Arbitrage Between Accounts

Explanation: Exploiting pricing differences between accounts, whether within the same company or across multiple firms.

Example: Simultaneously buying an asset in one account while selling it in another to profit from pricing discrepancies.


“All-In” Trading or Excessive Risk-Taking

Explanation: Repeatedly placing excessively high-risk trades that place the account at significant risk.

Example: Using the entire available margin on a single trade, effectively risking the full account balance on one market movement.

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