In general, Funded Prime does not restrict the use of any legitimate trading strategy, and we invite our traders to test out any strategy on our platform. Most importantly:
We allow the use of Expert Advisors.
We allow Martingale strategies.
However, there are a handful of strategies/trading practices that are prohibited as they are not legitimate strategies, but are instead designed to cheat the system and exploit inefficiencies in the market.
The following strategies will be considered a breach of account conditions:
The use of "Passing" or Account Management services
Services such as these go against the entire aim of Funded Prime, we're looking to find and fund the very best traders, as such we monitor accounts for any unusual activity relating to passing services.
Copy-Trading from someone else's account
Copy-trading is allowed so long as the accounts being copied from and to are owned by the same person. Similarly, we allow the copying of external broker or prop accounts, again providing they all have the same owner. However, we do not allow accounts to be copied between different traders on our platform, or from other traders on other platforms.
Hedging across multiple accounts
We allow traders to hedge on a single account with opposing trades. However, we do not allow traders to hedge across multiple accounts as this practice does not illustrate an effective real world trading strategy and instead simply aims to exploit the system.
High Frequency Trading (HFT)
This trading style looks to exploit market inefficiencies through the use of trading algorithms by executing a high number of trades within fractions of seconds. As a result, this can create false market volatility and price fluctuations as well as abnormal server loads, this in turn makes it difficult for genuine trades to make informed decisions.
Latency Trading
This is where traders look to secure profits by exploiting delays in trade execution and market data. This creates artificial buy and/or sell pressure and is unfair to genuine traders.
Arbitrage
Arbitrage trading exploits price discrepancies across different platforms or markets in order to trade without risk. This trading practice is unethical and can again distort market prices making it unfair for others.
Tick Scalping
Similar to HFT, Tick Scalping uses complex trading algorithms to execute a high volume of trades in order to capitalise on minor price fluctuations. The high volume of trades required for this strategy to work can manipulate market prices and create unfair market conditions.
Grid Trading
This refers to the practice of simultaneously opening identical buy and sell orders for the same asset. Repeatedly executing orders in this manner can create the misleading image of market activity which may adversely influence the trading decisions of others.
Account Sharing
Anyone found sharing accounts, trading on behalf of others, or allowing others to trade on behalf of them will be in violation of our rules.
Hyperactivity
This refers to any unusually excessive trading activities such as frequent adjustments to orders (to stop-losses, take-profits etc), or simply an excessive volume of trades, all within a short space of time. This type of activity increases server loads and can result in slower execution times for others, or even crash the system in extreme circumstances.
Data-Freeze Exploitation
Anyone accounts that are found to have intentionally exploited data freezing as a result of demo server errors will be flagged. This practice does not represent any skill in trading, but is instead designed to exploit any potential inefficiencies in the demo servers.
All of the strategies/trading methods listed above are strictly prohibited. Any accounts and traders that are found to have engaged in any of the above will be thoroughly investigated.
These investigations may result in accounts being reset, accounts being forfeited and in extreme circumstances, traders being banned from Funded Prime.