To maintain fairness, integrity, and consistency in our trading environment, the following strategies are prohibited:
High-Frequency Trading (HFT):
High-Frequency Trading involves exec uting numerous trades within fractions of a second, often using sophisticated algorithms. The goal is to profit from small price movements across very short time periods. This strategy can create an unfair advantage by leveraging technology that most retail traders do not have access to, leading to market instability and an uneven playing field. For this reason, HFT is prohibited in our programs.
Bracketing Trades:
Bracketing refers to placing multiple buy and sell orders at predetermined levels around the market price just before the release of a high-impact news. While this might seem like a way to profit from market fluctuations, it’s a strategy that doesn’t require proper market analysis and increases the risk of unpredictable outcomes. Bracketing trades are prohibited as they go against our commitment to responsible and strategic trading.
Grid Trading:
Grid trading involves placing buy and sell orders at predetermined intervals above and below the current market price, creating a grid-like structure. This strategy doesn't rely on proper market analysis and can result in significant risk exposure, especially in volatile market conditions. It’s prohibited as it doesn't align with disciplined risk management principles.
Hedging Between Accounts:
Hedging between accounts involves holding opposite positions (buy and sell) across multiple accounts to reduce risk artificially. This practice circumvents the intent of the program’s risk management rules and can lead to unintended consequences like reducing the effectiveness of drawdown limits and target goals. Hedging between accounts is prohibited to maintain fairness. This also includes hedging between other prop firms, brokers and other similar programs.
Signal Copying:
Signal copying involves following or copying trades from third-party sources without performing personal analysis or understanding the rationale behind the trade. This strategy undermines the purpose of the program, which is to evaluate the trader's skills and decision-making abilities. Traders are expected to rely on their own analysis, strategies, and judgment.
Third-Party Account Management:
Having someone else manage your account—whether through a fund manager or other third-party services—is strictly prohibited. The goal of our program is to support traders in developing and applying their own skills. Third-party management goes against this principle and distorts the purpose of the simulation process, which is to assess individual trading capabilities.
Latency Trading :
Latency trading involves leveraging delays in market data or trade execution to gain an unfair advantage and secure risk-free profits. At Leveraged, this practice is strictly prohibited, as it undermines fair trading principles and goes against the integrity of our trading environment
One-Sided Betting, Over-leveraging and Rolling Accounts:
One-sided betting is a high-risk trading approach where a trader repeatedly takes positions in a single direction—either buying or selling—without proper market analysis or consideration of prevailing conditions.
At Leveraged, this strategy is restricted due to its speculative nature and the heightened risk of significant losses. One-sided betting involves consistently opening buy or sell positions on an instrument without factoring in fundamental news, economic indicators, or technical analysis that could signal potential price movements. This lack of informed decision-making increases the probability of poor risk-reward outcomes and unsustainable trading behavior.
These prohibited strategies are in place to ensure all participants engage in fair and ethical trading practices, focusing on individual skill development, risk management, and market analysis.