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Prohibited Trading Practices at YRM Prop

YRM Prop enforces strict rules to ensure fair evaluation, account integrity, and a sustainable trading environment. Violating these rules can result in account restrictions, denied payouts, or permanent bans.

Updated over 2 weeks ago

Prohibited Practices

1. News Straddling

Placing opposing orders around major economic events to exploit volatility is not permitted.

Examples of prohibited behavior:

  • Placing simultaneous buy and sell orders before Non-Farm Payroll (NFP) data.

  • Using bracket orders to trap both sides of a news move.

  • Entering new positions within 2 minutes before and after restricted news releases.

Note: Holding a position opened before the restricted window is allowed.


2. IP Address Irregularities

We monitor IP usage to prevent account sharing and fraud.

  • If multiple IPs are flagged in unusual patterns (e.g., constant location hopping), our risk management system will review and investigate.

  • Traders may be asked to explain activity. If abuse is confirmed, restrictions or payout denial may apply.


3. VPN & VPS Usage

VPNs and VPS tools are allowed, as many traders use them for security or latency reduction.

However:

  • Abusive or suspicious VPN/VPS activity will be flagged.

  • Accounts using these tools for fraud, manipulation, or account sharing risk restrictions or termination.


4. Improper Hedging

You cannot artificially hedge to manipulate risk or account metrics.

Prohibited behavior:

  • Opening long and short positions on the same instrument simultaneously.

  • Hedging across multiple YRM accounts.

  • Engaging in cross-prop hedging (buying with YRM while selling at another firm to offset risk).

✅ Traders must use directional strategies, not manipulation tactics.


5. Arbitrage Exploits

YRM accounts are not designed for arbitrage.

Prohibited behavior:

  • Latency arbitrage between platforms.

  • Exchange arbitrage of identical contracts.

  • Order manipulation via statistical arbitrage.


6. Copy Trading & Trade Replication

YRM allows independent discretionary trading only, but with some flexibility around tools.

Not Allowed:

  • Copying trades from another trader’s account inside YRM.

  • Using social trading, mirror trading, or external signal replication from non-approved sources.

  • Hedging by mirroring trades between YRM and another prop firm (e.g., buying at YRM while selling at another firm).

Allowed:

  • Managing multiple of your own YRM accounts, provided each is traded with discretion and not for manipulation.

  • Running similar strategies across your accounts, so long as they are not exact mirrored entries intended to game the rules.

  • Using trade copiers across firms (as long as it is for trading purposes, not hedging or offsetting risk)


7. Algorithmic & High-Frequency Trading (HFT)

Trading bots or automated systems are restricted unless pre-approved.

Prohibited behavior:

  • Sub-second order placement/cancellation.

  • Tick scalping and latency-driven algos.

  • Spoofing or layering orders to manipulate market depth.


8. Account Sharing & Collaboration

Your account is for you only.

Prohibited behavior:

  • Letting someone else place trades on your account.

  • Sharing login credentials.

  • Trading multiple accounts from separate locations simultaneously.


Consequences of Violations

Violating prohibited trading practices can result in:

  • Immediate account restriction or termination.

  • Denial of payout requests (even if previously approved).

  • Permanent ban from all YRM Prop programs.

  • Possible legal action in cases of fraud.

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