High-Frequency Trading (HFT)
Why high-frequency trading is prohibited and what trading activity is allowed
PipFarm prohibits the use of high-frequency trading strategies. These strategies are designed to execute dozens or hundreds of trades in a short period, typically through automation, to capitalise on small price movements. While they may be common in institutional environments, they are not suitable for PipFarm's simulated trading program.
🚨 High-frequency trading is a prohibited practice. Accounts found to be using HFT strategies may have profits removed and face account termination.
What is high-frequency trading?
High-frequency trading (HFT) refers to automated strategies that rapidly place and close many orders within a short period — often seconds or milliseconds. These strategies typically use bots or scripts to automate order entry and exit, generate high order volumes with very low average trade duration, and aim to capture small profits from speed or latency advantages.
Why is HFT prohibited?
PipFarm provides a simulated trading environment designed to assess real-world trading skills, not to reward systems that exploit pricing delays or execution gaps. High-frequency strategies do not reflect realistic conditions in live markets, can overload platform infrastructure, undermine fair use of the program, and are often incompatible with broker pricing and slippage simulation.
Examples of prohibited HFT activity
The following trading behaviours may be flagged as high-frequency trading.
What is allowed?
Manual scalping, swing trading, and intraday strategies are all permitted. The key distinction is that your trades should be based on a genuine strategy, not system exploitation. You are free to trade frequently as long as you are not using automation to execute dozens of trades per second or abusing price delays, misquotes, or rapid-fire execution.
What happens if HFT is detected?
If high-frequency trading activity is detected on your account, PipFarm may take corrective action, including the removal of profit gained through HFT and account termination.