What are the Restricted/Prohibited Trading Strategies?
Fundex
Last Update a month ago
At FundexFX, we take a strong stance against any form of cheating or exploitation of the platform, as it directly violates our Terms of Service (TOS) agreed upon during registration. Traders are strongly encouraged to thoroughly review and understand our Terms of Service to avoid unintended violations.
Abuse of the System
refers to trading strategies that do not reflect genuine market conditions and are not allowed. Such actions result in an immediate breach of our Terms of Service, without prior warning. We strictly prohibit strategies that generate risk-free, consistent profits, especially within the Evaluation phase. Traders are expected to trade with the same approach they would with a FundexFX Funded Account. Any strategy exploiting Evaluation Accounts will result in the termination of the trader's account, whether it's during the Evaluation phase or after passing it. Additionally, practices like “Pass Your Challenge,” "Copy Trading Services," or “Signal Services” are strictly prohibited and could lead to a permanent ban from all FundexFX services.
High-Frequency Trading (HFT) is a strategy that involves executing numerous trades within milliseconds or seconds using sophisticated expert advisors and high-speed communication networks to capitalize on tiny price fluctuations. While HFT may seem appealing for quick profits, it has the potential to disrupt the market.
Why is HFT restricted at FundexFX?
HFT can manipulate market prices, creating artificial supply and demand. The excessive volume of trades distorts market activity, leading to misleading price movements and increased volatility. Such practices can destabilize the market and hinder other traders from making informed decisions. Furthermore, the strain on our servers from HFT may cause system freezes or delays in trade execution.
The Quick Strike Method involves executing rapid trades to profit from short-lived market movements, typically holding positions for mere seconds. Although it can generate quick profits, this strategy amplifies market volatility, distorting price perceptions and unfairly influencing other traders.
Why is the Quick Strike Method restricted?
This strategy inflates trading volumes, creating artificial price movements and market instability. While it presents opportunities for quick profits, the method raises concerns about market manipulation and fairness.
Latency trading exploits delays in market data or trade execution to secure guaranteed profits. This practice is strictly prohibited at FundexFX due to its unfair nature and violation of fair trading principles.
Why is Latency Trading prohibited?
Latency traders capitalize on price discrepancies between delayed and live data, creating an unfair advantage. This practice undermines the integrity of the trading environment, distorts market pricing, and erodes trust among traders.
At FundexFX, copy trading is allowed only within FundexFX Challenge Accounts under specific guidelines to ensure fairness. However, copying trades between multiple accounts not owned by the same individual, such as between family members, friends, or relatives, is strictly prohibited.
Hedging or Group Hedging Across AccountsHedging is allowed within a single account, where a trader can open both buy and sell positions on the same asset to minimize risk. However, hedging across multiple accounts is prohibited.
Example of Allowed Hedging:
If a trader opens a buy position on EUR/USD in Account A and simultaneously opens a sell position on the same asset within the same account, this is allowed.
Example of Prohibited Hedging:
Opening a buy position on EUR/USD in Account A and simultaneously selling EUR/USD in Account B constitutes prohibited hedging.
Arbitrage trading involves exploiting price discrepancies across different markets to generate risk-free profits. This practice is strictly prohibited at FundexFX due to its potential to distort market pricing and create instability.
Example:
A trader buys and sells identical assets across different platforms simultaneously, profiting from the price discrepancy. This creates price misalignments, disrupting market pricing and destabilizing the normal price discovery process.
Tick scalping is a strategy that involves exploiting minute price changes through a high volume of trades executed rapidly. This strategy is restricted due to its potential for market manipulation and its disruptive nature.
Example:
A tick scalper uses automated systems to capitalize on tiny price movements. This rapid influx of orders can strain liquidity, making it difficult for other traders to execute trades fairly.
Grid trading involves placing multiple buy and sell orders at various price levels. It is prohibited at FundexFX as it can lead to market manipulation and excessive risk exposure.
Example:
A trader places buy orders at $100, $105, and $110 and sell orders at $115, $120, and $125, profiting from price fluctuations. However, if the market drops below $100, all buy orders will result in losses.
We at FundexFX prioritize responsible trading. Excessive margin usage, overleveraging, or engaging in high-risk trades without proper analysis is considered gambling behavior and is strictly prohibited.
Example:
Professional traders limit risk to no more than 1% per trade, using 20%-30% margin to ensure sustainable performance. At FundexFX, we enforce strict guidelines to eliminate gambling behaviors, including leverage reductions and account termination after repeated violations.
Account rolling refers to the practice of purchasing multiple Evaluation Accounts in quick succession and intentionally failing some accounts while focusing on others. This tactic disregards risk management and is deemed unethical, as success is based on chance rather than skill.
Why is Account Rolling prohibited?
Account rolling bypasses the true purpose of the Evaluation phase, which is to assess a trader’s ability to manage risk effectively. Traders engaging in this practice fail to demonstrate genuine trading skills and may face restrictions or permanent bans from purchasing further accounts.
One-sided betting involves continuously taking trades in one direction without proper analysis or consideration of market conditions. This speculative strategy is considered high-risk and is restricted at FundexFX.
Example:
A trader opens several positions in the same direction without assessing market factors, exposing themselves to significant losses if the market moves against them.
Excessive trading activity, such as rapid order modifications or frequent trading in a short period, is considered hyperactivity and is restricted at FundexFX. It can strain our servers and cause delays or crashes in the platform.
Consequences for Exceeding the Limit:
If an account generates excessive messages or trades beyond a certain threshold, it will be flagged for hyperactivity. Repeated offenses may result in account suspension or breach.
The use of platform freezing or data errors as an unfair advantage is prohibited. Traders found engaging in such practices will face appropriate actions, including revocation of access to demo servers.
We prohibit the practice of using strategies that guarantee profit during low liquidity periods, such as the "dead zone" between the U.S. and Asian market sessions, due to the risk of market manipulation.
Sharing your account or device with another person is strictly prohibited. This includes unauthorized account transfers or using someone else's device to trade. Such practices violate our Terms of Service and may result in immediate account termination.
At FundexFX, we prioritize fairness, transparency, and professionalism. Any behavior that violates these principles could result in account suspension, banning from the platform, or permanent restrictions on your trading activities.