Forbidden Strategies and Limitations

4 min. readlast update: 12.19.2024

Trade as you wish. You may hold positions over the weekend and trade with lot sizes up to your leverage limits. However, any trading activities that exploit platform inefficiencies (such as gap trading, high-frequency trading, server spamming, latency arbitrage, toxic trading flow, scalping, hedging, long-short arbitrage, reverse arbitrage, tick scalping, server execution, or opposite account trading) are strictly prohibited. Additionally, copy trading or account management by a third-party vendor will result in account termination. Any such activities with Masters Prop will lead to account termination. Note that using a third-party expert advisor (trade/risk manager) is allowed as long as it is not managed or traded by another party.

If you attempt to use exploits or platform vulnerabilities for personal gain, your account will be banned.

Copy Trading Policy:

  1. You are not allowed to hold identical positions on both a Challenge account and a live account, or on two Challenge accounts simultaneously.
  2. To ensure a position is not considered copy trading, you must wait 30 minutes after opening a previous position before opening a new one.

Scalping Policy:

If your trades open and close within 3 minutes and exhibit an excessively high frequency of scalping, your profits will not be counted, and we reserve the right to suspend or close your trading account. Only Live accounts.

Note: We are looking for unique traders and strategies. We do not recommend using pre-made Expert Advisors (EAs) unless it is a risk or trade manager. If we detect similar operations on another trading account, it will be considered a violation.

We fight and restrict trading, which is defined as reckless risk-taking, impulsive behavior and disregard for fundamental principles. The so-called “toxic trading” threatens not only the accounts of individual traders, but also the stability of their own trading firms.
Such trading includes many behaviors and practices that have some common characteristics, including the following:

All-in trade

Trading based not on analysis, but on emotional single trades with the aim of randomly achieving a target profit, usually with a single trade. If the transaction volume differs from the average volume of all transactions by more than 50% (with the exception of high-frequency trading), in this case, individual restrictions may be applied.

Excessive risk-taking

Participation in transactions with a disproportionately high level of risk in relation to the trader's capital or risk tolerance. This often involves the use of excessive leverage, which can increase both profits and losses.
The maximum lot limit for the account size is:
$25,000 is a maximum of 10 lots;
$50,000 is a maximum of 20 lots;
$100,000 and $200,000 are a maximum of 40 lots;
There are no restrictions for other accounts.
 

Inconsistent trading

The maximum risk/loss (including floating loss) on a trading idea is 2.5% of the initial account balance.
A trading idea is classified as such if:
1. She was floating/open at the same time at the same point on the same symbol and direction or;
2. Transactions are closed and opened within the framework of a 1 price movement for 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. 

High Frequency Trading (HFT)

Engaging in excessive and rapid trading activity indicates higher volatility, which can lead to significant losses.

Hedge arbitration and other types of arbitration 

Simultaneous opening of opposite positions with different companies.
The use of differences in the execution time of transactions on different trading platforms or platforms. Traders using this strategy seek to profit from minor price differences resulting from delays in order processing or data submission.

Reverse trading

Signs and behavior, including the risk of a complete daily loss on a single trade, which often indicates reverse trading between different firms.

Traders suspected of such behavior may be subject to various restrictions, such as reducing leverage, limiting the number of trades per day, limiting the lot size per day, reducing daily/maximum loss, limiting the risk per trade, and introducing a maximum risk limit of 1%. a rule or even a ban on working in the company. Our goal is to help you become a better trader and risk manager, as well as to benefit from the trading flow you provide. This assessment is aimed at collecting the best possible trading data, which will allow us to monetize our data more effectively, increase our stability and strengthen the industry as a whole.


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