Prohibited Strategies

2 min. readlast update: 07.23.2025

🚫 Prohibited Trading Practices

To maintain fairness and transparency, Earnex strictly prohibits the following trading behaviors. Engaging in any of these may lead to account disqualification, breaches, or permanent bans.

Prohibited strategies and actions include:

⚡ Tick Scalping
Rapid trades aiming to profit from tiny price movements (just a few ticks) executed within seconds or milliseconds. High frequency, minimal movement tactics like this are not allowed.

🤖 High-Frequency Trading (HFT)
Algorithmic trading using advanced tech to place large volumes of trades at lightning speeds, exploiting tiny market inefficiencies. This practice is strictly forbidden.

⏱️ Latency Arbitrage
Exploiting price differences caused by delays in data transmission between sources. Using faster data access to trade on outdated prices from slower feeds is unfair and prohibited.

👥 Third-Party Account Management
Having someone else trade on your behalf—via MAM/PAMM, copy trading, or power of attorney—is banned unless explicitly authorized within approved platforms or agreements.

🔲 Grid Trading
Placing a series of buy and sell orders at fixed intervals, regardless of market trends, which can lead to excessive risk due to large exposure without proper stop-loss controls.

🔄 Martingale Strategy
Doubling down after losses to recover quickly. This high-risk approach can cause severe drawdowns and potential account failure.

⚠️ Data Feed Manipulation
Deliberate tampering or distortion of market price feeds to exploit automated systems or create unfair advantages is fraudulent and will result in severe penalties.

📉 Use of Delayed Data Feeds
Trading on price data that’s delayed by seconds or minutes to simulate live conditions, especially when prior knowledge of price outcomes exists, is prohibited.

↔️ Hedging Between Accounts (Reverse Hedging)
Opening opposite trades to exploit system mechanics (like swap rates or margin benefits), delay losses, or manipulate evaluations is forbidden.

📊 Position Concentration
Avoid focusing trades heavily in one direction without sound analysis. Repeated large trades on the same asset and direction in a short time may be flagged as speculative and prohibited. Aim for strategic, diversified trading aligned with your goals.

🚫 Chasing Losses
Recklessly entering trades immediately after losses in an attempt to recover quickly damages strategic discipline and evaluation integrity. Instead, practice patience, composure, and thoughtful decision-making.

🔴Excessive Exposure Policy

Opening positions that expose more than 50% of your allowed daily or maximum drawdown is strictly against our risk management guidelines. Traders are expected to manage their position sizing and overall exposure responsibly to protect capital and allow for natural market fluctuations. - 📌 This policy applies only to Funded stages.

Was this article helpful?