YRM Prop prohibits certain trading practices to maintain market integrity and ensure fair evaluation of trader performance. Violations of these prohibitions will result in account closure, delayed payouts, or complete forfeiture of profits.
News Straddling
Definition: News straddling involves placing orders on both sides of the market immediately before and after high-impact economic releases to capture volatility regardless of direction.
Prohibited behavior:
Placing simultaneous buy and sell orders before news events
Using bracket orders surrounding news releases
Trading within 2 minutes before and after major economic announcements
Example: Placing both buy and sell stop orders for ES futures immediately before Non-Farm Payroll data is released.
Trading From Multiple IP Addresses
Trading from multiple IP addresses is prohibited. We monitor IP addresses and if prohibited activities are detected, the account will be suspended and the client will be notified.
Arbitrage Trading
Definition: Arbitrage involves exploiting price discrepancies between identical or similar instruments across different markets or platforms.
Prohibited behavior:
Latency arbitrage (exploiting timing differences between platforms)
Exchange arbitrage (trading identical instruments on different exchanges)
Statistical arbitrage relying on high-frequency trading patterns
Example: Simultaneously buying and selling the same futures contract on different exchanges to profit from temporary price differences.
Using a VPN or VPS
YRM Prop strictly prohibits the use of Virtual Private Networks (VPN) and Virtual Private Servers (VPS) under any circumstances across all account types. Any attempt to use VPN or VPS services will result in Immediate account suspension.
Improper Hedging
Definition: While some hedging is permitted, certain hedging practices are prohibited.
Prohibited behavior:
Opening opposing positions on the same instrument simultaneously
Using hedging to manipulate account metrics
Hedging across multiple YRM Prop accounts
Example: Opening both long and short positions on the same futures contract to create the appearance of reduced risk while actually locking in losses.
Algorithm and High-Frequency Trading Restrictions
Definition: Trading using automated systems with high order placement and cancellation rates.
Prohibited behavior:
Using algorithms designed for sub-second trading
Implementing tick scalping strategies
Operating trading bots without prior approval
Using order spoofing or layering techniques
Example: Using an algorithm that places and cancels multiple orders within milliseconds to create false impressions of market depth.
Account Sharing and Collaboration
Definition: Allowing others to trade on your YRM Prop account or sharing access credentials.
Prohibited behavior:
Letting another person trade on your account
Trading multiple accounts from different locations simultaneously
Sharing account credentials with third parties
Example: Allowing a friend to trade your account while you're unavailable.
Copy Trading
Definition: Copy trading involves automatically replicating trades from another trader's account, either through:
Social trading platforms
Signal services
Trade copying software
Mirror trading applications
Any automated system that duplicates another trader's positions
Note: Copying trades between one’s own YRM trading accounts (3 maximum) is not considered prohibited trading behavior.
Prohibited behavior:
Using social trading platforms to copy other traders
Following trade signals automatically through software
Mirroring positions from external sources
Using any form of automated trade replication
Cross-Prop Firm Hedging
In addition to copy trading restrictions, the following hedging activities are strictly forbidden:
Opening opposing positions across YRM Prop and other prop firms
Using YRM Prop accounts to hedge positions held with competing prop firms
Coordinating trades between YRM Prop accounts and external prop firm accounts
Any form of risk mitigation that involves multiple prop firm accounts
Consequences of Violations
Engaging in any prohibited trading practices will result in serious consequences:
Immediate account termination without prior notice
Forfeiture of all accumulated profits in the account
Delayed or denied payouts even for previously approved withdrawals
Permanent ban from all YRM Prop programs
Legal action in cases of fraud or intentional manipulation
YRM Prop uses advanced monitoring systems to detect prohibited trading practices. All trading activity is regularly reviewed for compliance. If you're unsure whether a specific trading approach is permitted, please contact support before implementing it.