Introduction
We do not allow traders to use trading tactics that are intended to bypass program rules. This includes opening offsetting or partial positions purely to manipulate metrics such as:
Strategically hedging or trading to meet a requirement without proper trading intent creates artificial progress and undermines trust in the program.
Examples of manipulation
Here are some examples to illustrate how such hedging techniques can be used to bypass program rules.
Example 1: Profitable day manipulation
Traders can manipulate the Profitable Day requirements by partially closing or closing and re-entering the same trade idea across multiple trading days. This technique inflates the number of profitable days without genuine progress or new decisions.
Example 2: Consistency score manipulation
Traders can manipulate the consistency score requirements by partially closing or re-entering the same trading idea across multiple trading days. This technique distributes profit from a single trading idea across multiple trading days to artificially smooth the consistency score without genuine progress or new decisions.
Example 3: Max trailing loss
The maximum trailing loss trails the high-watermark balance. Therefore, a trader can lock in profits without increasing the balance by opening an equal-size position in the opposite direction (hedging). This tactic creates an artificial buffer.
Example 4: Daily loss
Traders can abuse their daily loss by utilising the majority of their daily loss in one account, then switching to another account to continue trading the same symbol in the same direction, on the same day.
Consequences of manipulating program rules
If we detect strategic hedging to manipulate any rule, we may take the following actions:
Reset your account or challenge
Remove illegitimate profit
Breach your account