Toxic trading behaviour
What PipFarm considers toxic trading behaviour and how flagged accounts are handled
Toxic trading is not the same as cheating, but some trading habits are considered undesirable. These include high-risk, aggressive, or short-sighted strategies that may pass a challenge or produce payouts but are ultimately unsustainable and only succeed in the short term.
PipFarm assesses this based on behaviour, not results. A trader may pass a challenge or receive a payout, but if the underlying behaviour shows repeated signs of poor risk management, the account may be flagged for review.
⚠️ Accounts flagged for toxic trading behaviour may be placed under probation while a manual review is carried out.
What counts as toxic trading behaviour?
The following are examples of behaviours that PipFarm considers high-risk or unsustainable. This is not an exhaustive list — any pattern of reckless or short-sighted trading may be flagged.
Account churning
Systematically purchasing multiple challenges at the same time or in a short period to increase the chances of a random pass. This relies on volume of attempts rather than demonstrating any skill or edge.
Insufficient margin
Repeatedly being forced out of trades because the margin level drops too low, indicating poor position sizing and risk management.
Risking the full daily loss allowance on a single idea
Using the entire daily loss allowance (or close to it) on one trade or on trades in correlated instruments. This leaves no room for recovery and treats each day as an all-or-nothing event.
Maxing out margin and scaling in
Opening large positions and then adding more size as the trade moves in your favour, using the increased margin from floating equity. This creates a one-sided bet with no buffer for a pullback.
Large positions before news events
News trading is allowed, but repeatedly placing maximum-size trades just before major economic events is considered speculative or lottery-style trading rather than a strategic approach.
What happens if my account is flagged?
If your account is flagged for toxic trading behaviour, PipFarm may take one or more of the following actions depending on the severity and frequency of the behaviour:
Warning — you'll be notified of the specific behaviour and given the opportunity to adjust your approach.
Probation — your account is placed under closer review. You can continue trading, but further violations may lead to escalation.
Corrective action — in serious or repeated cases, PipFarm may take further corrective action on your account.
ℹ️ PipFarm is not looking for perfection. The goal is to identify patterns of reckless behaviour, not to penalise traders for occasional mistakes or one-off losing trades.