PROHIBITED TRADING STRATEGIES

Prohibited strategies include exploiting unrealistic prices, arbitrage, latency trading, gap trading, high-frequency trading, reverse trading, one sided betting, hedging, group hedging, toxic trading flow, gambling strategies, martingale, excessive risk-taking, overtrading, spamming and tick scalping.

Also; placing many trades within seconds of each other is a prohibited strategy and will breach the account as this is considered as spamming the order book which we do NOT allow.

Gambling

Gambling in trading refers to high-risk behaviors such as using excessive leverage, impulsive decision-making, trading around news events, or trading without proper risk management. This includes strategies that prioritize quick, large gains over consistent, calculated profits. Gambling-type trading is strictly prohibited, and any such activity will result in the removal of profits and potential account closure.

Signs of gambling behaviour include trading and or increasing risk during news events, abusing max daily DD in 1 trade or splitting large trades into smaller positions and drastically altering trade durations to capitalize on volatility. If these practices are violated, your account may be flagged and potentially terminated.

To avoid gambling, always adhere to a solid risk management plan, limit your risk per trade, and make decisions based on rational analysis rather than emotions or market hype. Our goal is to support traders who prioritize consistent, profitable strategies and responsible risk management.

One Sided Betting

One-sided betting refers to the practice of repeatedly opening positions in one direction without adequate market analysis. For example, a trader may keep entering sell positions in the hope that one will eventually produce a profit. At Equity Edge, this is strictly prohibited because it is speculative, lacks analytical justification, and exposes traders to elevated financial risk.

Our risk team specifically monitors continuous re-entry, where a trader opens a new trade in the same direction, on the same instrument, shortly after the previous one has closed. While a single re-entry is acceptable, a repeated pattern of reopening shortly after closing in the same direction indicates that trades are being placed out of persistence and emotion rather than analysis. Each new trade must therefore be supported by fresh analysis showing what has changed since the last position closed. Continuously re-entering simply because the previous trade did not work out does not count as valid justification.

Accounts showing this pattern will be flagged for review, and confirmed cases will result in contract rejection, voided profits, and account termination.

Impulsive Decision Making

Impulsive decision-making refers to entering trades without proper analysis or a defined trading plan. It often involves rapidly opening positions in opposite directions based on short-term price movements rather than structured market evaluation. For example, a trader may open a buy position, then quickly switch to a sell position, repeating this cycle in an attempt to capture quick profits or recover losses.

This behavior is typically driven by emotion rather than analysis and indicates a lack of trading discipline. It can lead to excessive trading, inconsistent decisions, and unnecessary financial risk.

In some cases, this behavior is linked to revenge trading, where a trader attempts to immediately recover recent losses by placing additional trades without proper analysis. FOMO (Fear of Missing Out) can also drive impulsive trades, where positions are entered simply to catch a market move rather than following a valid setup.

Impulsive behavior can also include moving stop-loss levels further away to avoid taking a loss, which undermines proper risk management.

At Equity Edge, impulsive trading is strictly prohibited. All trades must be based on clear analysis, a defined strategy, and proper risk management. Rapid directional switching, FOMO-driven entries, revenge trading, or unjustified stop-loss adjustments are not permitted.

Martingale

Martingale is a high-risk strategy where a trader increases the size of each subsequent trade after a loss, with the goal of recovering previous losses. For example, after a losing position, a trader may double the next trade size to offset prior losses. At Equity Edge, the use of Martingale strategies is strictly prohibited, as it lacks sound risk management principles, and exposes traders to excessive risk.

Spamming

Spamming the order book is a manipulative trading practice that involves placing a large number of trades seconds apart to create a false or misleading market activity.

Example of spamming: A trader enters several 0.1-lot orders in rapid succession rather than a single order with the equivalent total size.

Full Porting

Full Porting is when traders abuse their starting max daily drawdown in 1 trade or split larger trades into smaller positions in order to go undetected. Abusing max daily drawdown refers to risking near your entire starting daily drawdown or exceeding it on a single position or multiple open positions.

Gap Trading

Gap Trading refers to exploiting significant empty spaces on a price chart, which occurs when a trading instrument opens at a vastly different price than its previous close. Trades placed during the final two hours before market close and held over a market closure for that instrument that exceeds two hours will be flagged, resulting in payout denial, contract rejection and potentially account termination.

This policy is designed to prevent traders exploiting unpredictable weekend news events that cause large gaps in the market outside of regular trading hours.

Hedging

Hedging refers to holding trades in opposite directions on the same instrument at the same time. At Equity Edge, hedging is not permitted across a single account or multiple accounts. Any activity identified as hedging will result in a payout rejection and may also results in account termination.

Reverse Trading

Reverse trading refers to holding two or more positions on the same instrument across different accounts, in opposite directions, at the same time. For example, a trader may open a buy position on one account and a sell position on the same instrument on another account while the first position is still open.

Positions do not need to be executed simultaneously to be flagged. If opposing positions on the same instrument are open across different accounts at any point, this will be treated as reverse trading, regardless of how much time passed between the entries.

This practice allows a trader to profit on one account regardless of market direction, offsetting losses on the other. It lacks genuine market analysis, does not demonstrate good risk management, and is used to exploit account rules rather than to trade consistently.

At Equity Edge, reverse trading is strictly prohibited. Any activity identified as reverse trading will result in a payout rejection and also account termination.

Using Expert Advisors (EAs)

The use of Expert Advisors (EAs) is not permitted.

The use of trade copiers is not permitted.