Prohibited Trading Practices

At The5ers, we are looking for individual talents who can bring their own system and strategy. Those traders will be highly rewarded and we will be able to assist them along their trading journey. The program is designed to cater to all speculative trading strategies. 

However, some trading practices that tend to abuse our system and programs are completely forbidden and are a strict violation of our Terms and Conditions. 

This works both for our evaluation phases and also for funded accounts. 

Prohibited trading practices that will breach our Terms and Conditions:

• Use exploitation of price discrepancies or glitches within different markets of similar or identical assets, also known as Arbitrage Trading

Situation: A trader notices that the same asset is priced differently on two different exchanges. They exploit this price difference by buying/ selling the asset on the on the exchange where it's price is different making a profit from the price discrepancy.

• High-frequency trading in which the majority of trades duration span is measured within a few seconds or less.

Situation: A trader uses sophisticated algorithms to execute thousands of trades within milliseconds, taking advantage of small price movements in the market. They aim to profit from these rapid trades, leveraging technology to gain an edge.

• Bracketing strategy by opening pending orders around high-impact news. It consists of opening buy and sell stops close to the price before the news.

Situation: Ahead of a major economic announcement, a trader places both buy and sell pending orders just above and below the current market price. When the news is released, triggering volatility, one of the pending orders is executed, allowing the trader to profit from the price swing.

• Intentionally or unintentionally employ trading strategies that take advantage of errors within the system, such as inaccuracies in price display or delays in updating

Situation: Due to a technical glitch, the trading platform displays incorrect price quotes for a particular asset. A trader quickly identifies this discrepancy and places trades based on the inaccurate prices, intending to profit before the error is corrected.

• Trade coordination or copy trading with other traders or accounts

Situation: A group of traders collaborates to execute coordinated trades across multiple accounts. They share signals and strategies with each other, effectively copying each other's trades to amplify their collective profits.

• One sided-bets which refer to a trading strategy where the user takes consistently positions in one single direction without considering market conditions or conducting proper analysis

Situation: Without conducting proper analysis, a trader consistently enters long positions on a particular currency pair, believing it will continue to rise indefinitely, regardless of market conditions or contrary indicators.

•  Expert Advisors which scalp during the rollover-night to take advantage of the price feed

Situation: A trader uses an Expert Advisor programmed to exploit price discrepancies during the rollover period when liquidity is lower. The EA executes rapid trades to capitalize on small price differences between bid and ask prices.

• EA from a third party where other traders have the same trades open (copy trading)

Situation: A trader purchases an EA from a third-party provider without realizing that many other traders are already using the same EA with identical trading strategies, leading to saturation in the market and diminished effectiveness.

• Using an EA from a provider where the trader does not own the source code.

Situation: A trader subscribes to an EA service where they receive pre-built trading algorithms without access to the underlying source code. They deploy these EAs without understanding how they operate or being able to customize them to their needs.

• Tick Scalping 

Situation: A trader engages in rapid-fire trading, entering and exiting positions within seconds based on minor fluctuations in price that occur with each tick of the market.

• Hedge Arbitrage Trading

Situation: A trader simultaneously buys and sells the same currency pair on different accounts exploiting temporary pricing inefficiencies 

• Reverse Arbitrage Trading

• Account Sharing or Reselling accounts with other individuals or entities

Situation: A trader sells access to their funded trading account to another individual or entity, allowing them to trade on their behalf or use the account for their own purposes in exchange for a fee or profit share.

 

• Account Management Services “Pass your Challenge” is also prohibited

Situation: A services to manage other individuals' challenge accounts, promising to pass the evaluation phase and gain funding on their behalf in exchange for a percentage of the profits generated.

If your account has been found abusing the system and violating the trading rules, we will terminate the entire relationship between you and the company and/or suspend, block and/or restrict your access to the services for specific functions immediately.

Any refund or profit will not be processed and you will be permanently banned from The5ers Fund.