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Restricted Trading Strategies

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Written by Alpha Trader Firm
Updated this week

To maintain a fair and stable trading environment, we enforce certain trading style restrictions. These restrictions are in place to prevent practices that could be considered manipulative or abusive, potentially undermining the integrity of our trading system. If we determine that a trader is using any of these methods to exploit or trick our system, we reserve the right to disqualify their account.

The restricted trading styles include:


Grid Trading

A strategy that places multiple buy and sell orders at preset price intervals, forming a “grid.”
It profits from oscillations but creates artificial volume and risk, often violating prop firm rules because it mimics automation and can exploit evaluation conditions.

Latency Arbitrage

A method where traders exploit delays between price feeds from different sources.
They enter trades on a slower platform before it updates to the true market price.
This is strictly prohibited because it takes advantage of technical delays, not skill.

Reverse Arbitrage

A variation of arbitrage where the trader intentionally sends undesirable trades to one account and favorable trades to another by using asymmetric execution.
It manipulates fills and violates fairness and risk integrity.

Tick Scalping

Extremely short-lived trades often held for under 30 seconds or less a repeated pattern of rapid entry/exits.
This is banned because it exploits micro-volatility, execution speed, and server load rather than actual market analysis.

Account Management

When a trader operates or controls another person’s trading account or allows someone else to trade their account.
This violates identity, fairness, and compliance requirements.

Signal Trading

Copying trades directly from another trader, signal provider, or mirroring system—whether automated or manual.
This results in duplicated trade patterns and removes individual skill, making the evaluation invalid.

High-Frequency Trading (HFT)

A style using ultra-fast execution, automated algorithms, and thousands of trades in short periods.
Retail platforms cannot support true HFT without abusing infrastructure, so prop firms typically restrict it.

Martingale

A risk-doubling strategy where the trader increases lot size after losses to recover the previous loss in one win.
It creates unbounded risk and is easily detectable due to consecutive increasing positions.

Hedging Between Accounts

Opening opposite trades on multiple accounts to guarantee one account wins while the other loses.
This is manipulation because it creates a no-risk environment that defeats the evaluation’s purpose.

Guaranteed Limit Orders

Placing limit orders that execute at better-than-market prices due to platform glitches, delayed feeds, or unrealistic volatility spikes.
Using these intentionally is considered exploitation.

Data Feed Manipulation

Any action taken to exploit differences, delays, or errors in the broker’s price feed. Examples:

  • Trading during known feed desync issues

  • Exploiting spread freezes

  • Taking trades during server resets
    This is fraudulent because it relies on system flaws.

Trading on Delayed Charts

Using a chart that is not updating in real time while placing trades based on the delayed information.
This can lead to unfair entries because the trader is effectively “seeing” past prices.

Macroeconomic Trading During High-Impact Reports and Being Filled at Unrealistic Prices Due to Volatility

Taking trades during events like NFP, CPI, FOMC, etc., where spreads widen and prices move erratically.
If a trader is filled at a price that is far outside the real market range, it indicates unrealistic execution and can invalidate trades under prop firm rules.

Hedging

Opening opposite positions on the same account (e.g., buy and sell the same pair at the same time).
This locks in exposure artificially and prevents normal risk, which is why most firms restrict it unless explicitly allowed.

Our goal is to ensure a level playing field for all traders. Engaging in any of the above practices can disrupt market fairness and create an uneven trading environment. We continuously monitor trading activity and have systems in place to detect and address any violations of these restrictions.

If you have any questions or need further clarification regarding our trading style restrictions, please contact our support team. We appreciate your understanding and cooperation in helping us maintain a fair trading environment.

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