Prohibited Trading Practices | The5ers Help Center

At The5ers, we seek genuine individual traders who can bring their own system and strategy applied to multiple market conditions. 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 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 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 trade durations 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.

Bulk trading, is when multiple trades are open simultaneously.

Situation: A trader opens manually or uses automatic trading tools that open multiple trades at the same time, clearly showing a trader is not behind the strategy activity.

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 consistently takes positions in one single direction.

Situation: 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 that 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.

Cross-operator coordinated trading, performed alone or in concert with other persons across accounts held with different providers, or proprietary trading firms, for manipulative purposes, for example by simultaneously entering into opposite positions across those accounts.

Situation: A trader holds funded accounts with The5ers and another proprietary trading firm simultaneously. They place a buy position on one account and a sell position on the other on the same instrument, hedging their exposure across firms and ensuring a profit regardless of market direction.

Using trading strategies that artificially distribute profit across multiple days without proportionally distributing market risk, such as holding opposing positions on the same or highly correlated instruments, or partially closing and managing the same trade idea across multiple trading days, in order to artificially inflate the number of profitable days recorded on the account.

Situation: A trader opens a large long position and simultaneously hedges it with a smaller short on a correlated instrument. They close the profitable leg on one day and the losing leg on another, manufacturing two separate profitable days on the account while the underlying market risk was taken in a single move.

Using automated robots or Expert Advisors that cause the trading account to generate an excessive number of server requests per day through individual trades or pending orders being opened, modified, or closed, causing overload of the trading server.

Situation: A trader deploys a high-frequency Expert Advisor that continuously opens, modifies, and cancels pending orders across multiple instruments throughout the trading session, generating thousands of server-side requests per day and placing disproportionate load on the platform infrastructure.

Opening position sizes or a number of positions that are substantially larger or smaller than your typical trading activity, whether compared across your own accounts or between your evaluation and funded account stages; or repeatedly concentrating risk in a single instrument or group of correlated instruments in a way that builds cumulative overexposure beyond what market-standard risk management would permit

Situation: A trader uses small, consistent lot sizes throughout the evaluation period and then, on the final day before hitting the profit target, opens a single position ten times larger than any previous trade in order to close out the required profit in one move.

Overleveraging or overexposure to a single instrument or correlated instruments in a manner inconsistent with market-standard risk management practices that a reasonable person would apply when trading with their own capital.

Situation: A trader allocates their entire available margin to a single currency pair ahead of a high-impact news event, taking a position size that would be financially catastrophic in a live account but carries limited personal consequence in a simulated environment, in order to maximise the chance of hitting the profit target in a single trade.

Generating disproportionate concentrated exposure through a highly speculative position resulting in rapid profits within a limited trading history, where the overall activity does not demonstrate sustainable, risk-managed trading across varying market conditions and is inconsistent with realistic proprietary trading practices or the responsible capital management standards expected of funded traders.

Situation: A trader with a short account history places a single high-leverage position on a volatile instrument during an abnormal market event, generating a large profit in a very short period. The trade represents the majority of the account's total profit and bears no resemblance to the measured, consistent trading activity the evaluation process is designed to assess. While no individual rule threshold was technically breached, the overall pattern of activity does not reflect how a responsible trader would manage real proprietary capital, and creates unjustified financial and operational risk exposure to the Company.

Engaging in speculative position-taking that resembles gambling rather than legitimate proprietary trading, characterised by one or more of the following: opening positions of disproportionate size relative to account balance or prior trading activity; placing trades without a demonstrable analytical or risk management basis; concentrating exposure in a single instrument or event outcome; or relying on leverage as the primary driver of profit rather than market analysis or trading skill.

Situation: A trader opens an outsized leveraged position immediately before a major scheduled event with no stop loss, no prior trading history on the account, and no evidence of a defined strategy, generating a large profit purely as a result of favourable price movement rather than any demonstrable trading edge. The activity is inconsistent with how a responsible trader would deploy proprietary capital and does not reflect the sustainable trading behaviour the evaluation process is designed to identify.

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.