Funded Forex maintains a zero-tolerance policy against any form of cheating or exploitation of the platform, as outlined in our Terms of Service (TOS) agreed upon during registration. Traders are strongly encouraged to carefully review our Terms of Service and familiarize themselves with the following guidelines to avoid unintended consequences.

Any manipulation of the system, including trading styles that do not accurately reflect real market conditions, is strictly prohibited and constitutes a violation of our Terms of Service, without exception. Strategies designed to generate risk-free, consistent profits exclusively on Challenge accounts are explicitly prohibited. Traders are expected to engage in trading activities on their accounts as if they were Funded Forex accounts.

Any utilization of strategies aimed at exploiting Challenge accounts will result in the immediate termination of a Funded Forex Trader's account, regardless of whether they are in the evaluation phase or have already obtained a Funded Forex account. Additionally, "Pass Your Challenge," "Copy Trading Services," or "Signal Services" are strictly prohibited, leading to the rejection of any Funded Forex account applications and a permanent ban from all Funded Forex services.

Examples of Strategies that violate our TOS: 

1. High Frequency Trading (HFT)

High-Frequency Trading (HFT) employs advanced computer algorithms and high-speed telecommunication networks to execute an excessive number of trades within milliseconds. This strategy aims to capitalize on tiny price fluctuations and exploit market inefficiencies. Although it may promise rapid profit generation, HFT carries significant risks and can negatively impact the market.

Here's why HFT is restricted on the Funded Forex platform:

HFT trading can distort market prices and create artificial demand or supply. By executing a large volume of trades within milliseconds, HFT traders can create false impressions of market activity, influencing other participants' decisions and leading to market manipulation. The excessive trading volumes generated by high-frequency trading can disrupt market stability. The rapid influx and outflow of orders can create volatility, leading to erratic price fluctuations and increased market uncertainty, making it challenging for other traders to make informed decisions. Additionally, the high frequency of trades often overwhelms servers, causing them to freeze and resulting in consequences.

Example: An HFT trader rapidly places a series of buy orders, artificially inflating the price of a market. Other traders, seeing the sudden surge, may mistakenly buy at inflated prices, resulting in potential losses when the market corrects itself. In another scenario, an HFT trader executes numerous rapid-fire trades within milliseconds, causing rapid price swings in an asset. This heightened volatility and unpredictability make it challenging for other market participants to accurately gauge market conditions and plan their trading strategies.

2. Latency Trading

Latency trading involves executing trades based on delayed market data or exploiting delays in trade execution to guarantee profits. At FundedNext, we strictly prohibit latency trading due to its unethical nature and its infringement upon fair trading practices in financial markets.

Example: Latency trading contradicts the principles of fair and transparent trading, undermining the integrity of financial markets. A latency trader exploits a delay in trade execution, capitalizing on the price difference between the delayed execution and the current market price. They execute a high volume of trades within seconds to profit from this difference, artificially influencing buying or selling pressure and manipulating the market. By knowingly participating in such activities, they compromise the fairness and transparency essential for a healthy trading environment.

3. Copy Trading (Prop Specific Rule, Does not Apply to Cash Accounts on Brokerage)

CopyTrading is when one account has the same trades (or a high percentage of similar trades) than another account

Traders are ONLY allowed to do the following regarding copytrading:

-Funded Forex account as a master account copying trades outside of Funded Forex.
-Funded Forex account as a slave account receving trades outside of Funded Forex from an account that is owned by the same individual (proof of ownership may be requested).

You are not allowed to copy trades in between Funded Forex accounts wether they are owned by the same individual or other traders. 

4. Hedging or group Heding Across Various Accounts 

Hedging is permitted at Funded Forex within the same account. (Buys and Sells at the same time with the same pair)

However, hedging using multiple accounts is not allowed as it does not constitute a proper trading strategy. For instance, if you have two accounts, you are prohibited from placing hedged entries between them.

Example: Suppose you possess two trading accounts with us, Account A and Account B. Buying 1 lot of EUR/USD on Account A while simultaneously selling 1 lot of EUR/USD on Account B to hedge the position is not permitted.

However, purchasing 1 lot of EUR/USD on Account A and concurrently selling 1 lot of EUR/USD on the same Account A to hedge the position is permissible.

Hedging or group hedging across multiple accounts involves a trading tactic where an individual or group opens multiple accounts and executes opposing trades on the same asset across all accounts. While this strategy aims to capitalize on price fluctuations while minimizing market risk, it does not reflect genuine trading intelligence and is therefore prohibited.

5. Any form of Arbitrage Trading, Tick Scalping or Hyper Activity

Arbitrage trading refers to the practice of exploiting price discrepancies or time lags across different markets or platforms to generate risk-free profits. At Funded Forex, any form of arbitrage trading is strictly prohibited due to its unethical nature and potential to disrupt fair market conditions.

Tick scalping refers to a trading strategy where traders aim to profit from small price fluctuations by executing a high volume of trades within a short time frame. At Funded Forex, limitations have been imposed on tick scalping as a result of its capacity for market manipulation and disruptive trading practices.

Hyperactivity in trading refers to an excessive level of trading activity by a trader, characterized by the frequent and rapid execution of trades within a short period. This also includes frequent modifications to orders, such as adjusting stop-loss or take-profit levels and updating limit orders. The industry defines an account as hyperactive if it surpasses 200 trades or 2,000 server messages in a single day. This count also includes messages associated with frequent modifications to orders, such as adjusting stop-loss or take-profit levels and updating limit orders. 

6. Account Sharing/Device Sharing
   
   

Sharing your Funded Forex account with others or selling it to someone else without permission is prohibited. It's also not okay to let other traders use your devices, even if you know them. This breaks our rules and is strictly off-limits. We're really serious about this because it's crucial for security, fairness, and staying compliant.

We do have a Device Policy in which traders are allowed to use up to 2 devices for their trading activities. Our trading platforms are able to record this info and log it into our database.

We recommend only using your phone or personal computer, do not log in to you trading platform in a device you would rarely use that you don’t own (friend, family, acquaintance). 

7. One-sided Betting:

When a trader only focuses on buying a particular instrument without considering any potential negative factors or signs of a market downturn, it's like they're placing one-sided bets. This means they're not diversifying their investments, which can leave them wide open to big losses if the price of that instrument suddenly drops.

8. Grig Trading/Martin Gale:
   (Allowed only in Challenge Phases, Not on Funded Accounts)
   (Allowed only on Instant Funding Accounts & Cash Brokerage Accounts) 

Grid trading refers to a trading strategy where opposing buy and sell orders for the same financial instrument, with similar risk parameters. At Funded Forex, grid trading is prohibited due to its potential for market manipulation, over-leveraging, market instability, and the pursuit of risk-free profits.

Example: A trader employs grid trading by simultaneously placing buy and sell orders on a particular currency pair with the intention to profit from price oscillations. By repeatedly executing these opposing orders, they can create the illusion of market activity, influencing other participants' trading decisions. A trader utilizes grid trading with aggressive leverage, opening numerous buy and sell positions on a volatile market. Despite the appearance of a controlled strategy, the accumulated exposure to price movements and the associated leverage can result in substantial losses if the market moves unfavorably.

If a trader is entering into trades against the trend (in drawdown) there’s a 2 trade max policy. If the trader wished to enter into a 3rd position, it would be necessary to close the 1st trade and realize that loss if necessary.

If a trader is entering into trades in favour of the trend (stacking positive trades) there is no max trade policy. Trader must be carefull to do this wisely and not fall into a one sided bet.

The only accounts that allow Grid Trading/MartinGale on the funded stage are the Instant Funding Accounts (both conservative and aggressive)

Elite, Unlimited, Bolt and Launch Giveaway challenges allow MartinGale/Grid in the Evaluation and Verification stages. In Funded stages this trading strategy is not allowed. 

9. Gambling Attitudes / Gambling Approach 

Overleveraging: A Common Trading Pitfall

Many traders fall into the trap of overleveraging, thinking that larger positions will quickly lead to big profits. However, these large positions often increase stress due to the risk of significant losses, negatively impacting the trader’s mental state and leading to more mistakes and a sabotaged trading plan.

Moreover, trading large positions, whether as a single entry or by gradually adding more, restricts a trader’s options. For example, when trading with Funded Forex, traders must consider the Maximum Daily Loss limit. Each additional position increases the risk of exceeding this limit if the market moves unfavorably, forcing traders to reduce their Stop Losses (in points/pips) or preventing them from opening another potentially profitable position.

Overexposure in Trading

Diversifying by trading multiple instruments can lead to overexposure if positions effectively represent a single large bet, such as multiple major currency pairs influenced by the US dollar. Adding to winning positions or spreading out trades can also lead to overexposure and poor risk management.

Opening positions that use maximum available margin is risky due to potential issues like slippage and market gaps, making even Stop Losses unreliable.

In summary, large positions or the total size of multiple positions are very risky. A conservative approach with strict risk control is better. Professionals typically risk only 1% per trade, achieving consistent, long-term profits. Prudent risk management is essential for trading success; less is often more.

One-Sided Bets in Trading

Opening large positions or adding to losing trades is risky and often considered gambling. If the initial position exceeds risk limits, adding more increases potential losses and stress.

While adding to winning trades in strong trends can be profitable, it assumes high confidence in long-term trends. Serious traders use strategies that work consistently over time.

One-sided bets risk large margins on single events, driven by macroeconomic factors, which can be dangerous and unreliable. It’s best to avoid such high-risk practices.

Account Rolling in Prop Trading

Account rolling is a form of gambling where traders buy multiple evaluation accounts at once, complete them, but can’t trade them all simultaneously due to allocation limits. This leads to risky trades on the first account, thinking they can just switch to the next if they breach the first. Funded Forex encourages the opposite.