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Microscalping: What is it and how does Tradofunded measure it?

Microscalping: What is it and how does Tradofunded measure it?

Fernando Holguin avatar
Written by Fernando Holguin
Updated over 5 months ago

Microscalping is a strategy in which traders execute trades that last only a few seconds, seeking to take advantage of very small movements of only a few ticks or points. ⏰🌐

In Tradofunded, this trading strategy is not allowed and is set as an operational parameter:

  • Strategies with a duration per trade of less than 1 minute are prohibited.

However, this does not mean that you cannot have an occasional trade of this type, either due to special market circumstances or if you mistakenly opened a position in the wrong asset or size. It is important to note that we account for all trades, regardless of whether the result was positive or negative.

πŸ“πŸ“ˆ How do we measure this? If 20% or less of your trades and/or profits during the period are scalping, you are within the allowance. This calculation is done at two points in time, when you request a withdrawal and when your request arrives after you meet the requirements to upgrade to a Virtual Live account.

Examples:

  1. 80 Trades total, 8 scalping; 10% scalping βœ… OK.

  2. 50 Trades total, 25 scalping; 50% scalping ❌ Not allowed.

  3. 200 Trades in total, 38 scalping; 19% scalping βœ… OK.

  4. 150 Trades in total, 33 scalping; 22% scalping ❌ Not allowed.

  5. $3,000 total profits, $1,200 earned by scalping;

    40% scalping profits ❌ Not allowed.

  6. $2,000 total profits, $200 earned by scalping;

    10% scalping profits βœ… OK

  7. $5,000 total profits, $1,050 earned by scalping;

    21% scalping profits ❌ Not allowed.

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