Funded Prop BX enforces a zero-tolerance policy towards any form of cheating or misuse of our platform, as this violates the Terms of Service agreed to at registration. We encourage all traders to carefully review our Terms of Service to avoid engaging in practices that could lead to unintended violations.

System abuse, defined as employing trading methods that don’t align with genuine market conditions, is strictly prohibited and will be considered a breach of our Terms of Service without prior warning. Strategies that guarantee risk-free, consistent gains, particularly on Challenge accounts, are not permitted. We expect traders to manage their accounts as they would with actual Funded Prop BX funds, treating every trade with the seriousness it deserves. Any approach that takes advantage of Challenge accounts will result in the immediate termination of the trader’s account, whether in the Classic stage or as a Funded Prop BX account holder.

Furthermore, engaging in “Pass Your Challenge,” “Copy Trading Services,” or “Signal Services” is strictly forbidden. Violation of this rule will lead to the forfeiture of any Funded Prop BX accounts and a permanent ban from utilizing Funded Prop BX services.

Example Strategies Prohibited by Our Terms of Service:

▸ High-Frequency Trading (HFT):
High-Frequency Trading, or HFT, involves advanced computer programs and rapid communication systems to perform a large volume of transactions in fractions of a second. The goal of HFT is to take advantage of tiny changes in prices and market imperfections for quick financial gains. Although the prospect of fast profits might be appealing, HFT carries substantial risks and can negatively impact the overall market stability.

• Why High-Frequency Trading (HFT) Is Not Allowed on Funded Prop BX:
  High-Frequency Trading skews market prices and lead to false signals of demand or supply impacting all traders. By conducting numerous transactions in just milliseconds, HFT practitioners can give the misleading appearance of significant market movement, swaying the decisions of other market players and potentially manipulating the market. The overwhelming volume of trades driven by high-frequency strategies can undermine the market’s balance. The swift surge and withdrawal of orders may induce volatility, resulting in unpredictable price swings and heightened market uncertainty, which complicates the decision-making process for other investors. Moreover, the intense frequency of trades in such a brief timeframe often overloads the servers, leading to technical issues and adverse effects.

• Example Scenario Involving High-Frequency Trading (HFT):
  Consider a situation where an HFT trader quickly submits numerous buy orders, which falsely drives up the market price. Other investors, noticing this abrupt increase, might be deceived into purchasing at these higher, unrealistic prices, only to face potential financial losses when the market naturally adjusts to its actual value. Similarly, an HFT trader might perform a series of rapid transactions in a very short time, causing swift and significant price changes in a certain asset. This heightened volatility and unpredictability complicate the ability of other market participants to accurately evaluate the market situation and devise their trading plans.

▸ Latency Trading:
Latency trading is the strategy of carrying out trades using delayed market data or taking advantage of trade execution lags to lock in certain profits. At Funded Prop BX, we have a strict policy against latency trading because it is considered unethical and contradicts the principles of fair trading within the financial markets.

• Example of Latency Trading:
  Latency trading conflicts with the core values of fair and open trading. It damages the financial market’s integrity by introducing unfair advantages and diminishing trust among traders. In latency trading, a trader spots a lag in the execution of trades and exploits the gap between the delayed execution price and the current market value. They rapidly execute numerous trades to profit from the price variance, artificially influencing market demand or supply and skewing the market dynamics. Such actions undermine the principles of fairness and transparency that are essential for a well-functioning trading environment.

▸ Copy Trading:
At Funded Prop BX, we permit traders to copy trades from account you personally own. This includes from one Funded Prop BX account to another, or from any proprietary trading firm or retail brokerage account, as long as all accounts involved are under the same person’s ownership.Conversely, it is against our rules to engage in copy trading across multiple accounts not owned by the same individual. This includes accounts belonging to relatives, family members, or friends. Such activities are strictly forbidden.

To get more details regarding copy-trading click here.

▸ Hedging or Group Hedging Across Multiple Accounts:
At Funded Prop BX, you’re allowed to employ hedging strategies, but only within a single account. Engaging in hedging by using several accounts is against our rules, as it’s considered an improper trading tactic. For instance, if you’re managing two accounts, it’s not permissible to set up opposing trades between them.

• Example: Suppose you have two trading accounts with us, labeled Account A and Account B. If you purchase 1 lot of EUR/USD in Account A and at the same time sell 1 lot of EUR/USD in Account B as a hedging strategy, this practice is prohibited.
  On the other hand, if you own these two accounts, Account A and Account B, and you conduct a transaction where you buy 1 lot of EUR/USD and then sell 1 lot of EUR/USD within the same account, say Account A, for hedging, this is permissible.

▸ Hedging Across Multiple Accounts:
Hedging or coordinating hedging across various accounts is a trading strategy where an individual or a group opens several accounts and carries out conflicting trades on the same financial instrument in all these accounts. The objective behind this approach is to benefit from price movements while reducing exposure to market risks. Despite its intentions, this method does not demonstrate true trading skill and is, therefore, not allowed.

▸ Arbitrage Trading:
Arbitrage trading involves taking advantage of differences in prices or timing between various markets or platforms to secure profits without risk. At Funded Prop BX, we have a strict policy against any type of arbitrage trading because it’s considered unethical and can undermine the integrity of the market.

• Explanation: Arbitrage trading can lead to skewed market prices and disrupt the proper distribution of resources. When traders exploit price differences, they can cause market prices to stray from their actual values, leading to price inconsistencies. An example of this is statistical arbitrage, where a trader buys and sells related financial instruments based on past price trends. This kind of trading activity can misshape the market prices of these instruments, causing a gap between their perceived and real value. Furthermore, when arbitrage is done on a large scale, it can cause sudden price changes, leading to unnatural market volatility and interfering with the natural process of price determination.

▸ Tick Scalping:
Tick scalping is a trading approach where traders seek to gain from minor price changes by making numerous trades over a brief period. At Funded Prop BX, we’ve set restrictions on tick scalping due to its potential for market manipulation and the disruption it can cause to trading activities.

• Example: Tick scalping involves using automated programs to make quick trades, taking advantage of tiny price changes in the market. This method allows scalpers to act faster than other traders, securing profits by getting ahead in the order queue, which can lead to an unfair edge. The high volume of orders placed and then quickly canceled by tick scalpers can also put pressure on market liquidity. This makes it difficult for other traders to carry out their transactions at reasonable prices.

▸ Grid Trading:
Grid trading is a method where traders set up counteracting buy and sell orders for the same asset, maintaining similar risk levels for each trade. At Funded Prop BX, we do not allow grid trading because it can lead to market manipulation, excessive use of leverage, instability in the market, and attempts to achieve profits without risk.

• Example: In grid trading, a trader sets up both buy and sell orders on a specific currency pair at the same time, aiming to capitalize on price fluctuations. This strategy involves making these opposing trades repeatedly, which can give the false impression of active market participation and potentially affect the trading choices of others. When a trader engages in grid trading with high leverage, they open many buy and sell positions in a fluctuating market. Although it might seem like a managed approach, the combined risk from price changes and high leverage can lead to significant financial losses if the market doesn’t move as expected.

▸ One-sided Betting:
One-sided betting is a trading approach where a trader always takes positions in the same direction, neglecting to account for current market conditions or to carry out thorough analysis. At Funded Prop BX, we impose restrictions on one-sided betting due to its high-risk, speculative character and the significant loss potential it carries. Engaging in one-sided betting involves continuous buying or selling of a financial instrument while disregarding crucial factors such as fundamental news, economic indicators, or technical analysis that may indicate a potential rise or fall in price. This absence of informed analysis heightens the risk of entering into trades with poor risk-reward ratios.

• Example: A trader practices one-sided betting by repeatedly purchasing a specific financial instrument, ignoring potential negative signs or warnings of a possible decrease in the market. This approach’s lack of variety in investment choices makes the trader prone to significant losses if the price of the instrument suddenly drops.

▸ Account Sharing:
Account sharing involves the unauthorized act of distributing or selling Funded Prop BX accounts to others, whether individuals or groups. This action breaches the Terms of Service at Funded Prop BX and is firmly forbidden. We adopt a strict no-tolerance policy towards account sharing for reasons tied to security, integrity, and compliance.

▸ Hyperactivity:
Hyperactivity in trading is defined as an unusually high amount of trading actions by a trader, marked by quick and numerous trades in a brief timeframe. This also encompasses regular changes to orders, like altering stop-loss or take-profit settings and revising limit orders.

• Reasons for Restricting Hyperactivity on Funded Prop BX:
  Although trading is a key component of our platform, an excessive number of trading activities can cause issues. The main problem is the potential for slowing down the platform due to the large volume of server messages/logs created by numerous trades. This situation can lead to delays in executing trades, which can be very annoying for traders. In severe cases, it could even cause the entire platform to freeze or crash.

• In order to provide every trader with a seamless and dependable platform experience, we are implementing steps to prevent hyperactivity. The standard in the industry identifies an account as hyperactive when it exceeds 200 trades or 2,000 server messages within a single day. This tally also takes into account messages linked to regular changes in orders, like modifying stop-loss or take-profit settings and revising limit orders.

• What Happens If You Go Over the Limit:
  When an account first goes beyond 2,000 messages, the Funded Prop BX team will send out an initial warning to encourage a review and adjustment of trading practices. If the account surpasses this message threshold again, a second warning will be issued. Should an account exceed this limit for a third time, it will be labeled as hyperactive, leading to a breach of the account’s terms. Moreover, if an account produces 15,000 messages in a single day, it will be automatically disabled to prevent additional overload on our system.

▸ Exploiting Platform or Data Freezes from Demo Server Glitches:
Taking advantage of any loopholes, like freezing of the platform or data due to issues with demo servers, is not allowed. This rule is in place to ensure fair competition among all traders and to prevent any deceptive tactics. If traders are found to be exploiting such glitches, they will be subject to investigation, and necessary measures, such as losing access to our demo servers, might be enforced. Should there be any server malfunctions, traders are advised to immediately inform the support team at Funded Prop BX.

▸ Enforcing Guaranteed Execution of Limit Orders:
Using strategies that ensure the execution of limit orders every time is not allowed, as it could circumvent regulatory rules and take advantage of markets with low liquidity. This kind of manipulation is possible because trading takes place on a simulated platform. By guaranteeing the execution of limit orders, traders could avoid the outcomes that would occur in a real market, making this practice not reflective of actual financial market operations. Therefore, engaging in such trading activities breaches the Terms of Service set by Funded Prop BX.