Prior to utilizing a trading bot or automated trading tool during the experienced trader stage, it is advisable for the trader to ascertain that the bot or trading style being used does not fall into any of the following categories.
We suggest that traders consult with the developer of the tool they plan to use before continuing with its usage during the experienced trader stage.
Below, we have provided the name and definition of the strategies to which attention must be paid if intending to use an automated trading tool on this program.
Grid Trading Or Grid Trading Tools: Grid trading is when orders are designed to be placed above and below a set price, creating a grid of orders that increase or decrease incrementally along with the chart price.
Having 2 trades open at a time is not considered as grid trading, however, once there are 3 or more positions in the trading session with each following order stacked as the original position moves into drawdown, this classifies more towards grid trading. The process for identifying Grid Trading most often than not follows the below-stated points: Determining the starting price for the grid.
Choosing an interval, such as 10 pips, 50 pips, or 100 pips.Determining whether the grid will be with-the-trend or against the trend.
MartingaleMartingale is a methodology to amplify the chance of recovering from a losing streak by constantly increasing the lot size of new trades in order to circumvent any loss taken.This strategy involves doubling up losing trades and reducing winning trades by roughly half. Opening subsequent trades on an asset with a difference in ≈50% of the prior trade would result in martingale. EA’s which incrementally open higher lots while price moves against the direction of the orders adding up to a substantially higher lot size than the first would also classify as Martingale.
Guaranteed limit orders Placing limit orders with SL and TP using high lot sizes around periods of high-impact news or high volume.
In such a scenario, there is no guarantee that the order gets filled at the same price through live market conditions and occurrences of slippage.
For example, if a trader was to place a buy stop above price, and a sell stop below price before a high impact news event such as FOMC, this would classify as a guaranteed limit order approach. This type of approach is based on entirely different outcomes each time depending on order fills, slippage, and market conditions.
To keep full transparency, the reason we do not allow Martingale or Grid Tools is due to the fact we allow a no-restriction evaluation, meaning the use of HFT allows trader to have access to experienced trader accounts at an exceedingly high passing rate.
If our program was built similar other funding programs, where traders must use true trading conditions to pass and not HFT, this would be different on our end and we would allow these types of strategies. Since a trader is offered guaranteed access through HFT, this is where the difference occurs from a risk standpoint. Unfortunately, there are no exceptions to this as we do not allow these types of trading styles during the experienced trader stage. By purchasing an evaluation, the trader agrees that the above strategies will not be used while trading our program. Allowing a 3rd party service to install, connect, and manage a 3rd party trading tool or bot in any shape or form on your account is not allowed. You are allowed to trade your own bot and manage it from your own device.