We prevent and restrict trading that involves reckless risk-taking, impulsive behaviour, and disregard for fundamental principles. This type of trading, known as “toxic trading,” not only poses risks to individual traders’ accounts but also jeopardizes the stability of their trading firms.
“Toxic trading” encompasses various behaviours and practices, all of which share certain common characteristics:
All-in trade
Trading based not on analysis, but on emotional single trades aimed at randomly achieving a target profit, typically with just one trade. If the trade size deviates from the average trade size by more than 50% (excluding high-frequency trading), individual restrictions may be applied in such cases.
Excessive Risk-Taking
Engaging in trades with disproportionately high risk levels relative to the trader’s capital or risk tolerance. This often involves the use of excessive leverage, which can amplify both profits and losses.
Maximum lot limit based on account size:
$25,000 — maximum 10 lots
$50,000 — maximum 20 lots
$100,000 — maximum 40 lots
No restrictions for accounts with $1,000 and $10,000.
Inconsistent Trading
Maximum risk/loss (including floating loss) per trade idea is 2.5% of the initial account balance.
A trade idea is classified as such if:
1. It was floating/open at the same time, at the same price, on the same symbol and direction, or;
2. Trades are closed and reopened within a 2-minute interval on the same symbol and direction.
Note: You can still use a drawdown of up to 4/5% per day, but not in a single trade.
Overtrading
Continuously entering and exiting trades without a clear strategy or rationale, resulting in diminished profitability and emotional exhaustion.
High-Frequency Trading (HFT)
Engaging in excessive and rapid trading activities indicative of higher volatility, which may result in significant losses.
Hedge Arbitrage
Simultaneously entering opposing positions with different firms.
Latency Arbitrage
Exploiting disparities in trade execution times across various trading platforms or venues. Traders using this strategy seek to profit from minor price differences resulting from delays in order processing or data feed.
Poor Money Management
Traders who frequently encounter margin calls due to inadequate funds or risky positions may indicate a lack of risk management, posing a threat to their accounts and potentially the firm’s stability.
Behavioral Patterns
Inconsistent behaviors, such as trading during non-liquid market hours to exploit liquidity shortages, consistently disregarding risk management principles, or making emotional decisions.
Reverse Trading
Signs and behavior, which includes risking the full daily loss on one trade, which often indicates reverse trading between different firms.
Traders suspected of this kind of behavior may face various restrictions. These could include: Reducing the amount of leverage available, Limiting the number of trades allowed per day, Restricting the size of each trade, Reducing the daily or maximum loss allowed, Limiting the risk per trade, Setting a maximum risk limit of 1% per trade.In extreme cases, this may even result in a rule or ban on working with the company. Our goal as an Evaluation firm is to assist you becoming a better trader and risk manager, while also benefiting from the trading flow you provide. This evaluation aims to gather the best trading data possible, enabling us to monetize our data more efficiently, enhancing our stability, and strengthening the industry as a whole.
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Core Principles:
– Avoid and minimize gambling and “toxic trading”
– Enhance the stability and reliability of the company’s operations
– Instill discipline and consistency in trader actions
– Give traders the opportunity to showcase their skills and earn longer by reducing the risk of collapse
– Prevent gambling characteristics in trader behavior
– Account for higher risk of collapse during news events/”black swan” events
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In case of restrictions violated not due to trader’s fault (e.g., “slippage”), the issue will be considered individually. We are willing to accommodate traders with whom we can build long-term mutually beneficial relationships. We do not provide funding to just anyone. Our support is extended only to those traders who have passed the evaluation and demonstrated