CHECKLIST FOR RESTRICTED TRADING STRATEGY
If the Company suspects or has reason to believe that a Client has abused the Terms and Conditions of this Bonus Program or has used any of the prohibited trading strategies (or abusing the bonus using other trading accounts held with Company) or externally (using other trading accounts held with other brokers), or using any other combination that offers the client a risk-less trading opportunity, then the Company reserves the right, at its absolute discretion and without obtaining the Client’s consent, to remove the Bonus from the Client’s trading account(s) or from his profitable accounts with immediate effect. All profits made from such trading activity shall also be removed from the client account along with the bonus funds. Any losses made in the account(s) shall be deducted from the client’s funds on deposit. Under the terms of the promotion, trading strategies including, but not limited to the below are strictly prohibited:
1. Scalping (Short Duration); trades closed under 300 seconds (this is an average indicative time. Trades more than this time frame may or may not be scalp trades considering the other factors such as spike in trading volume, low trading Profit/loss, trading around releases only, trades remain open for less period of time etc,) or trades that are closed below average or current spreads. There exists no justifiable rationale for opening and closing trades with differences less than the average 5 or 15 minute move if you are trading with a 5 or 15 minute time frame. This filter will apply corresponding to the data used in comparing the size of your trade(in pips) and the market volatility data. Anything less than the average move (adjusted for the spread applicable in your account) is a scalp trade. Anything closed in less than 300 seconds is a scalp trade. Any collection and succession of trades that are just being opened and closed in a short period (especially in blocks of multiple lots) are most probably rebate churners. https://www.investopedia.com/terms/forex/f/forex-scalping-and-scalper-system-strategy.asp
2. CFD/Future/Derivatives/Forex Scalping (Small Price Movement): it is a trading style used by traders to buy or sell a instrument and then hold it for a short period of time in an attempt to make a profit. A scalper looks to make a large number of trades, taking advantage of the small price movements which are common throughout the day. While scalping attempts to capture small gains, such as 0 to 20 pips per trade, the profit on these trades can be magnified by increasing the position size; • scalping involves buying and selling currencies, typically with a brief holding time and with multiple trades taken each day. • scalpers keep risk small in an attempt to capture small price movements for a profit. The small price movements can become significant amounts of money with leverage and large position sizes. • scalpers typically use promotional forex accounts, as using a normal account will put them at a disadvantage. • leverage, spreads, fees, and slippage are all risks that the scalper needs to control, manage, and account for as much as possible.
3. Hedging; https://www.investopedia.com/trading/hedging-beginners-guide/
4. High Frequency Trading, https://www.investopedia.com/terms/h/high-frequency-trading.asp
5. Expert Advisors, https://finance-pedia.com/glossary/expert-advisor/
6. Algorithmic Trading, https://www.investopedia.com/terms/a/algorithmictrading.asp
7. All Forms Of Trading Arbitrage, https://www.investopedia.com/terms/a/arbitrage.asp
8. Latency Arbitrage, https://www.investopedia.com/articles/trading/04/111004.asp
9. News/Event Arbitrage, https://www.investopedia.com/terms/n/news-trader.asp
10. Swap/Rollover Arbitrage, https://www.investopedia.com/articles/investing/050515/arbitrage-strategies-changing-interest-rates.asp
11. Trading volume spikes around/during volatile/thin markets OR for completion of volume requirements of the promotion, with a distinct change from previous trading patterns witnessed in the account., https://www.investopedia.com/terms/s/spike.asp#:~:text=A%20spike%20is%20a%20sudden,by%20inc reasing%20or%20decreasing%20volume.
12. Any Systematic Trading Strategy that derives its sole advantage from the special terms of the bonus such as trading with intent to scalp trade or trade with high leverage in/around/during thin/illiquid markets/news releases/partial market holidays/economic and political events(such as election results), wash sales, misusing swap-free trading, and any other strategy that takes advantage of short term anomalies in the market using the bonus funds/leverage/conditions to generate/magnify profits.
13. All Corporate Actions including but not limited to stock splits/ reverse splits/ dividends/ index adjustments and any other structural event that causes a mathematical adjustment to the price of the traded asset.
14. Deep draw-downs in accounts with a large number of positions continuing to be added into the account when accounts are near threshold levels where rebates stop, with no attempt being made to close the loss making positions, no matter how large the loss. New positions being added in a martingale like fashion and such positions being opened/closed for continued rebate generation with actual realizable account values falling but balances rising.
15. Accounts near expiry of bonus opening unlimited positions at all levels, followed by closing of positions that increase the balance, while the account’s realizable value continues to decline/remains stagnant.
16. Simultaneous opening of buying and selling positions in the same markets at the same time, using a combination of accounts which are all being managed by the same/related manager. If the company has reason to believe that a user is in violation of the terms of the promotion and/or abusing/misusing the terms of the bonus, the company shall inform the user in writing of the said violation and may exercise remedies including but not limited to;
a) Cancellation of the bonus and any profits made in the account while the bonus funds were in the account, with immediate effect.
b) Removal of the bonus funds, profits made using the bonus funds and deduction of losses from the client’ own deposited funds followed by closure of the account, followed by a return of the user’s funds to the account from which the user’s own funds on deposit were originally received.
c) In case the account using the promotion has a current balance that is below the original starting balance, any losses made in the account shall be deducted from the user’s deposited funds and the remaining funds shall be remitted back to the client, via the same method as the mode of deposit.
PLEASE NOTE :The company’s decision in matters related to misuse/violation of the bonus terms and conditions is final and binding. All promotions offered by us are at the sole discretion of the company and no binding obligation is placed upon the company to negotiate any part/benefit/disadvantage of a promotion with users of the promotion including but not limited to its starting/end dates, amounts, terms and conditions, availability to individual users/accounts or any other sub component/condition