Banned Unprofessional Trading Practices

What are Unprofessional Trading Practices?

Banned Unprofessional Trading Practices

What are Banned Unprofessional Trading Practices?
Banned unprofessional trading practices refer to reckless and impulsive behaviors that not only jeopardize individual trader accounts but also undermine the stability of PropFirm Pro as a whole. To succeed in the trading world, avoiding these behaviors is essential for long-term profitability.

Banned Unprofessional Trading Practices
These include, but are not limited to:

• Excessive Risk-Taking (Over-Leveraging)
  Engaging in trades that exceed your risk tolerance or available capital can lead to full margin use and overexposure, magnifying both profits and losses. The first violation results in a warning, with further violations leading to account closure, profit deductions, and retention of only 33% of the performance commission.
• Gambling Behavior
  Trading based on emotion or chasing losses is akin to gambling. In particular, any single trade on Master accounts should not exceed a 2% loss of the account size. A single trade is a position. Splitting trades into multiple positions will be counted as a single trade.
• Overtrading
  Frequent entry and exit of trades without a clear strategy or rationale, leading to reduced profitability and emotional exhaustion.
• High-Frequency Trading (HFT) & Tick Scalping
  Rapid and excessive trading that increases volatility and can lead to significant losses.
• Arbitrage
  Arbitrage strategies, including hedge and latency arbitrage, exploit price differences without any underlying fundamental strategy. These practices are strictly prohibited.
• Poor Money Management
  Frequent margin calls or risking more than necessary signals poor money management, which puts both the trader’s account and the firm at risk.
• Behavioral Patterns
  Inconsistent behaviors, such as trading during low-liquidity hours or disregarding established risk management rules, can destabilize your account and lead to emotional, unbalanced decisions.
• Reverse Trading
  Risking excessive amounts on a single trade, especially in an attempt to reverse a loss, is considered a breach of guidelines and will trigger a violation.

Consequences of Banned Unprofessional Trading Practices
Engaging in these unprofessional behaviors may lead to:

• Reduced leverage
• Limits on daily trades or lot sizes
• Imposition of a 1% risk limit per trade
• A permanent ban from the platform

At PropFirm Pro, we help traders develop disciplined, effective risk management strategies, while fostering a stable and profitable trading environment. By adhering to these guidelines, you'll build stronger trading habits and contribute to a more efficient, successful trading community.

Prohibited Trading Strategies at PropFirm Pro

At PropFirmPro, we offer the flexibility to tailor your trading approach, but there are certain restrictions in place to ensure fairness and maintain the integrity of our platform. While we support innovative strategies, some tactics are strictly prohibited to prevent potential abuse and ensure a stable trading environment for all.

Forbidden Practices:

• Grid Trading: Trading strategies that involve placing multiple orders in the same direction are limited to a maximum of four positions at once.
• High-Frequency Trading (HFT)
• Tick Scalping
• Latency Arbitrage
• Server Spamming
• Toxic Trading Flow
• Hedging
• Long-Short Arbitrage
• Reverse Arbitrage
• Server Execution
• Opposite Account Trading
• Copy Trading or third-party account management

Expert Advisors (EAs):EAs are allowed only if you own the strategy and we approve the source code. The only EA currently approved for use on the platform is ProfitAlgo.io. Any third-party EAs or strategies not approved will result in account suspension and a denial of rewards.

IMPORTANT:
At PropFirmPro, we believe in empowering skilled traders. To become a funded trader, you need to prove your abilities by adhering to the rules—there’s no room for shortcuts.

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