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# Prohibited trading strategies

## Applicable to Challenges and Funded accounts

These rules apply to **all** Prop Firm challenge types and their funded stage.

Breaking a prohibited rule can lead to **trade cancellation**, **profit disqualification**, **account suspension**, or **account disqualification**.

<a href="https://drive.google.com/file/d/1oV7lCdkjL76XeykXwmflBxXmHYSJ5uTl/view" class="button primary">Review Offer & Terms - English</a> <a href="https://drive.google.com/file/d/1dqLk1pxK29mjllG2PSqpVA9SXtNGfrjZ/view" class="button primary">Review Offer & Terms - Español</a>

### Rules by challenge type (summary)

{% tabs %}
{% tab title="LIVE Synthetics (1-Step)" %}
**Key restrictions**

* **Grid trading:** allowed **only with conditions**:
  * Max **6** simultaneous positions per grid cycle.
  * Cumulative price deviation from the first entry must stay within **0.3%**.
  * Exceeding these limits can lead to **disqualification**.
* **Maximum exposure (margin usage) — hard rule (Challenge):**
  * Total required margin (all positions + pending orders, where applicable) must be **≤ 20%** of Balance.
  * Required margin per single symbol must be **≤ 10%** of the Start Balance.
* **Martingale:** prohibited.
* **HFT / tick scalping:** prohibited.
* **Trade duration rule:** at least **80%** of your closed trades must stay open for **≥ 1 minute**.
* **Synthetic profit cap:** synthetic pairs have a maximum profit cap of **10% per month**.
* **Copy Trading** is not allowed in any form.
  {% endtab %}

{% tab title="LIVE FX (1-Step)" %}
**Key restrictions**

* **Grid trading:** allowed **only with conditions**:
  * Max **6** simultaneous positions per grid cycle.
  * Cumulative price deviation from the first entry must stay within **0.3%**.
  * Exceeding these limits can lead to **disqualification**.
* **Maximum exposure (margin usage) — hard rule (Challenge):**
  * Total required margin (all positions + pending orders, where applicable) must be **≤ 20%** of Balance.
  * Required margin per single symbol must be **≤ 10%** of the Start Balance.
* **Martingale:** prohibited.
* **HFT / tick scalping:** prohibited.
* **News trading:** no trading **5 minutes before and after** major macroeconomic events.
  * **Closing** positions is allowed in that window.
  * **Opening** new positions is not allowed.
* **Trade duration rule:** more than **70%** of your closed trades must stay open for **≥ 1 minute**.
* **Copy Trading** is not allowed in any form.
  {% endtab %}

{% tab title="Boost+ (2-Step)" %}
**Key restrictions**

* **Grid trading:** allowed **only with conditions**:
  * Max **6** simultaneous positions per grid cycle.
  * Cumulative price deviation from the first entry must stay within **0.3%**.
  * Exceeding these limits can lead to **disqualification**.
* **Maximum exposure (margin usage) — hard rule (Challenge):**
  * Total required margin (all positions + pending orders, where applicable) must be **≤ 20%** of Balance.
  * Required margin per single symbol must be **≤ 10%** of the Start Balance.
* **Martingale:** prohibited.
* **HFT / tick scalping:** prohibited.
* **News trading:** no trading **5 minutes before and after** major macroeconomic events.
  * **Closing** positions is allowed in that window.
  * **Opening** new positions is not allowed.
* **Trade duration rule:** more than **70%** of your closed trades must stay open for **≥ 1 minute**.
* **Copy Trading** is not allowed in any form.
  {% endtab %}

{% tab title="Power Live (Insta Funded / Direct Funded)" %}
**Key restrictions**

* **Grid trading:** allowed **without limits**.
* **Martingale:** allowed **without limits**.
* **HFT / tick scalping:** prohibited.
* **Maximum exposure (margin usage) — hard rule (Challenge):**
  * Total required margin (all positions) must be **≤ 20%** of the Start Balance.
* **News trading:** avoid trading **5 minutes before and after** major macroeconomic events.
  * **Closing** positions is allowed in that window.
  * **Opening** new positions is not allowed.
* **Trade duration rule:** more than **70%** of your closed trades must stay open for **≥ 1 minute**.
* **Copy Trading** is allowed.
  {% endtab %}
  {% endtabs %}

### Quick list — what is prohibited (unless an exception says otherwise)

* **Over-exposure** (excessive risk concentration).
* **Maximum exposure (margin usage) — Soft rule (Challenges &  Funded):** total required margin must be **≤ 20%** of Start Balance,&#x20;
* **Maximum exposure (margin usage) — Soft rule (Challenges):** total required margin must be **≤ 10%** of the Start Balance for a single Symbol,&#x20;
* **Martingale** (except **Power Live**).
* **HFT** and **tick scalping** (including “Quick Strike” behavior).
* **Grid trading abuse** (allowed only under program limits).
* **Group trading / opposite positions** (hedging on the same instrument).
* **Arbitrage** of any kind.
* **Copy trading from external accounts** (signals, other brokers, other prop firms).
* **Third-party account management** (anyone else trading your account).
* Position sizes noticeably larger/smaller than your normal trade size.
* Common IPs/devices used by different users (account/device sharing).
* Inconsistencies in trading patterns (sudden, unexplained behavior changes).
* Taking advantage of system errors, bugs, or vulnerabilities.

***

### <mark style="color:blue;">High-Frequency Trading (HFT)</mark> <a href="#ktn85y6zb6" id="ktn85y6zb6"></a>

HFT uses EAs or infrastructure to place a very high number of orders in milliseconds.

It creates unfair execution advantages. It can destabilize pricing and overload trading servers.

If a trader is warned for hyperactivity and repeats it, the system may suspend the account.

***

### <mark style="color:blue;">Quick Strike Method (tick scalping)</mark> <a href="#i0ymfbnc7q" id="i0ymfbnc7q"></a>

Quick Strike is an ultra-fast style that tries to capture tiny moves repeatedly. It is usually linked to tick scalping and hyperactivity.

It distorts execution conditions for others. It can also create abnormal server load.

***

### <mark style="color:blue;">Copy trading</mark> <a href="#id-2dbecg4xhx" id="id-2dbecg4xhx"></a>

**Allowed**

* Copying between **your own FXLiveCapital accounts (only Power Live )**

**Not allowed**

* Copying from **external accounts** (other brokers, other prop firms, signal services).
* Copying between accounts owned by **different people** (friends, family, groups).

<mark style="background-color:blue;">**Note:**</mark> <mark style="background-color:blue;"></mark><mark style="background-color:blue;">Copy trading is not allowed in any form on the following accounts:</mark> <mark style="background-color:blue;"></mark><mark style="background-color:blue;">**Live Synthetics, Boost+, and Live FX**</mark><mark style="background-color:blue;">.</mark>

***

### <mark style="color:blue;">Hedging / Group trading (opposite positions)</mark> <a href="#r-wv5g7ziv" id="r-wv5g7ziv"></a>

Hedging is opening opposing positions (Buy and Sell) on the same instrument.

This is prohibited:

* In the same trading account.
* Across multiple accounts under the same client ID or IP.
* Using external platforms coordinated with internal accounts.

This behavior is treated as platform manipulation. It can be used to bypass drawdown rules or delay losses.

<figure><img src="https://storage.simplebase.co/buckets/7WTOQwrtozcAmk0Slj0XHH3Z4Ma2/uploads/image-HdKbC83V.png" alt=""><figcaption></figcaption></figure>

***

### <mark style="color:blue;">Any form of arbitrage trading</mark>

Arbitrage exploits price discrepancies or time lags across venues or feeds.

This includes (but is not limited to):

* Triangular arbitrage
* Statistical arbitrage
* Latency arbitrage
* Market-making arbitrage
* Spatial arbitrage
* Pairs arbitrage
* Risk arbitrage
* Convertible arbitrage
* Volatility arbitrage
* Dividend arbitrage
* Tax arbitrage
* Yield curve arbitrage

Any form of arbitrage is prohibited.

***

### <mark style="color:blue;">Martingale strategy</mark> <a href="#n9i-i2wz6" id="n9i-i2wz6"></a>

Martingale increases trade size after losses (often doubling).

* **Prohibited** on LIVE Synthetics, LIVE FX, and Boost+.
* **Allowed without limits** on **Power Live**.

<figure><img src="https://storage.simplebase.co/buckets/7WTOQwrtozcAmk0Slj0XHH3Z4Ma2/uploads/image-UdCGN44X.png" alt=""><figcaption></figcaption></figure>

Martingale often causes:

* Exponential growth of open positions.
* Rapid drawdown escalation.
* Margin exhaustion after a few consecutive losses.

***

### <mark style="color:blue;">Grid trading</mark> <a href="#b9uf1u8i-f" id="b9uf1u8i-f"></a>

Grid trading is placing multiple positions at fixed/variable price intervals.

It is **restricted** due to the risk of uncontrolled exposure.

#### Allowed conditions (LIVE Synthetics, LIVE FX, Boost+)

* Max **6** open positions per grid cycle.
* Cumulative price deviation from the first entry must stay within **0.3%**.

If a new order is executed beyond the allowed range, the account can be flagged. This can lead to trade cancellation, profit disqualification, suspension, or disqualification.

#### Power Live exception

* **Power Live:** grid trading is allowed **without limits**.

<figure><img src="https://storage.simplebase.co/buckets/7WTOQwrtozcAmk0Slj0XHH3Z4Ma2/uploads/image-qcLkbV8k.png" alt=""><figcaption></figcaption></figure>

***

### <mark style="color:blue;">Maximum Exposure (Margin Usage) — Soft Rule</mark>

**Applies to:** LIVE FX, LIVE Synthetics, Boost+, INSTA Funded.

To prevent over-exposure, the **total required margin** of all open positions (and pending orders, where applicable) must not exceed **20%** of the account **Equity** at any time.

Additionally, required margin per **single symbol** must not exceed **10%** of Equity.

If either limit is breached, it is treated as a **SOFT Rule** violation and the Challenge will be **restarted** (reset to initial balance).

This is **not** a permanent disqualification.

#### Definitions

* **Equity:** the real-time account equity including floating P\&L.
* **Balance:** is considered the innitial balance of your challenge
* **Required margin:** calculated by the platform/broker for each position/order, based on instrument specifications and leverage.

{% embed url="<https://margin-calculator.fxlivecapital.com/>" %}

***

### <mark style="color:blue;">One-sided betting</mark>

One-sided betting is repeatedly trading only one direction without market justification.

Example: continuously buying (or selling) the same instrument regardless of conditions.

This behavior is treated as excessive speculation and can lead to disqualification.

***

### <mark style="color:blue;">Trading during major macroeconomic events (news trading)</mark>

To reduce abusive fills during extreme volatility, trading is restricted around major news.

**Applies to:** LIVE FX, Boost+, Power Live.

* No trading **5 minutes before and after** a major macroeconomic release.
* **Only close orders** are allowed in that window.

Major news includes (not limited to):

* Central bank interest rate decisions (FOMC, ECB, BoE).
* Non-Farm Payroll (NFP).
* CPI / inflation releases.
* GDP releases.
* Employment and labor reports.
* Major geopolitical announcements or economic summits.

Major news is any **high-impact** scheduled event on recognized calendars.

<figure><img src="https://storage.simplebase.co/buckets/7WTOQwrtozcAmk0Slj0XHH3Z4Ma2/uploads/image-WwzH8PSW.png" alt=""><figcaption></figcaption></figure>

***

### <mark style="color:blue;">Minimum trade duration (1-minute rule)</mark>

Very short-duration trading is restricted and is evaluated based on the total number of your closed trades.

**LIVE Synthetics:**\
At least 80% of trades must remain open ≥ 1 minute.

**LIVE FX / Boost+ / Power Live:**\
More than 70% of trades must remain open ≥ 1 minute.

In other words, the majority of your trades must stay open for at least one minute before being closed.

Trades lasting ≤ 1 minute are allowed in a limited way. However, the profit generated from these trades must not exceed 30% of the total account profit.

***

<mark style="background-color:blue;">**Treatment of Short-Duration Trades (< 1 minute)**</mark>

To ensure compliance with the program’s trading model, the following conditions apply:

1. **Trades under 1 minute representing less than 30% of total trades:**\
   If trades with a duration of less than 1 minute account for less than 30% of the total number of trades, they will be considered invalid for profit calculation purposes.\
   In this case, the profits generated from such trades will be deducted from the total withdrawal amount.
2. **Trades under 1 minute representing 30% or more:**\
   If trades with a duration of less than 1 minute account for 30% or more of the total number of trades, the trading activity will be considered as not complying with the program criteria.\
   In this case, the withdrawal request will be rejected, and the account may continue trading once more in order to comply with the established conditions.

***

### <mark style="color:blue;">Other prohibited activities</mark> <a href="#ihx98upzvx" id="ihx98upzvx"></a>

* <mark style="color:green;">Over-exposure:</mark> excessive concentration of risk in one instrument, one direction, or one execution pattern.
* <mark style="color:green;">Taking advantage of system errors:</mark> bugs, price delays, or vulnerabilities (including latency trading).
* <mark style="color:green;">Use of external or slow data feeds:</mark> trading based on delayed feeds or “gap trading”.
* <mark style="color:green;">Group trading:</mark> using multiple connected accounts to manipulate outcomes (including opposite positions).
* <mark style="color:green;">System manipulation using technology:</mark> software, AI, ultra-high-speed trading, or mass order entry designed to abuse platform conditions.
* <mark style="color:green;">Third-party account management:</mark> any person or service trading on your behalf.
* <mark style="color:green;">Inappropriate position sizing:</mark> lot sizes noticeably larger/smaller than your own average.
* <mark style="color:green;">Account/device sharing:</mark> common IPs/devices across different users.
* <mark style="color:green;">Inconsistent trading patterns:</mark> sudden style changes that indicate rule-bypass behavior.
* <mark style="color:green;">Trades inconsistent with normal market behavior:</mark> activity that does not reflect typical market execution or price discovery.
* <mark style="color:green;">Extremely risky / high-margin strategies:</mark> using excessive leverage or risk profiles that endanger account integrity.

### <mark style="color:blue;">Power Live (Direct Funded) — exceptions</mark> <a href="#tugnoopmjz" id="tugnoopmjz"></a>

Power Live acts as a genuine account with fewer restrictions. These are the explicit exceptions in this program:

* **Martingale:** allowed without limits.
* **Grid trading:** allowed without limits.
* **Deposit refund:** your initial deposit is refunded if you withdraw at least **5% monthly** for **three** times within a **six-month** period.

### <mark style="color:blue;">Challenges related to synthetic pairs</mark> <a href="#xj07tyqfup" id="xj07tyqfup"></a>

To improve program sustainability, synthetic pairs have a profit cap of **10% maximum profit per month**.


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