There is no minimum hold time for trades on our platform. You can execute trades of any duration, whether they last seconds, minutes, or hours. However, it is important to note that certain prohibited strategies, which often involve extremely short hold times, are not permitted.
Prohibited Strategies and Short Hold Times
While short exposure trades are not inherently against the rules, the use of certain strategies that typically involve minimal hold times is prohibited. These include:
Microscalping: Executing rapid trades within seconds to capture tiny price movements.
High-Frequency Trading (HFT): Using algorithms to execute a large number of trades in extremely short time frames.
Latency Arbitrage: Exploiting delays between price updates across platforms to capitalize on small price discrepancies.
These approaches often lead to trades held for just a few seconds and are not allowed on our platform due to their potential to violate the integrity of the evaluation and funded account processes.
Why Hold Time Matters
While there is no explicit minimum hold time, the duration of your trades can be a key indicator of whether your strategy complies with our rules. A few trades with very short hold times won’t typically raise concerns. However, if it is found that you are employing a prohibited strategy, the hold time of your trades may be reviewed as evidence of non-compliance.
What Does This Mean for Traders?
Short Trades Are Allowed: If your strategy occasionally involves trades with short hold times, this is not an issue.
Caution with Prohibited Strategies: Ensure your trading approach does not fall into prohibited practices, even if it involves short-duration trades.
Focus on Compliance: Use trading strategies that align with our rules to avoid any potential issues.