Prohibited Strategies List
Latency arbitrage, tick scalping, grid martingale, and account hedging void profits at review.
Firms sell simulated fills, so anything that exploits feed latency or guarantees fills cannot be hedged. Banned patterns include latency arbitrage between feeds, high-frequency tick scalping under a few seconds, grid and martingale doubling without stops, and hedging long versus short across two accounts. Detection runs at payout, not live — trades close normally, then profits are removed. If a strategy cannot survive a 2-second execution delay and real spread, assume it is banned. Trade one directional idea with a stop and a target.
Applies to 3 firms • Trading Rules • ALL
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Why this rule exists
Firms sell simulated fills, so anything that exploits feed latency or guarantees fills cannot be hedged. Banned patterns include latency arbitrage between feeds, high-frequency tick scalping under a few seconds, grid and martingale doubling without stops, and hedging long versus short across two accounts. Detection runs at payout, not live — trades close normally, then profits are removed. If a strategy cannot survive a 2-second execution delay and real spread, assume it is banned. Trade one directional idea with a stop and a target.
How traders get caught
This rule is often buried in FAQ or enforced only at payout review — not on the pricing page. Check the exact firm wording before assuming the headline covers your case.
How to stay safe
Verify the firm terms excerpt, keep evidence logs of your setup, and test edge cases in the simulator before sizing up.
The Formula
How it is calculated
Real Dollar Example
On a $100K account you run a 3-second grid on EURUSD and bank $6,000 in a week. At payout the desk flags 400 sub-5-second round trips with no stops — the $6,000 cycle is voided and only the fee history remains. One clean $2,000 swing with a stop would have paid.
Common Traps & Mistakes
Running a martingale EA that doubles into every loss without a hard stop.
Scalping 2-second holds 300 times a day and calling it price action.
Hedging long on account A and short on account B to lock evaluation profit.
Firms using this rule
Related guides
Keep learning this cluster
Hyperactivity & Order Limits
Too many orders, modifies, or pending spam per day reads as toxic flow — even when each trade is small.
EA, Copy Trading & Hedging
Bots allowed, but hyperactivity, third-party EA clusters, and hedging across accounts = forfeiture.
Retroactive Strategy Veto
Profits can be removed after the fact if the strategy is later ruled prohibited — winning first does not protect you.
80% Margin Gambling Rule
If used margin ever exceeds 80% of equity, the account is flagged as gambling — even without a drawdown breach.
All 41 guides
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