Prohibited strategies include exploiting unrealistic prices, arbitrage, latency trading, high-frequency trading, reverse trading, one sided betting, group hedging, toxic trading flow, gambling strategies, martingale, excessive risk-taking, overtrading, spamming and tick scalping.
Also; placing many trades within seconds of each other is a prohibited strategy and will breach the account as this is considered as spamming the order book which we do NOT allow.
Gambling
Gambling in trading refers to high-risk behaviors such as using excessive leverage, impulsive decision-making, trading around news events, or trading without proper risk management. This includes strategies that prioritize quick, large gains over consistent, calculated profits. Gambling-type trading is strictly prohibited, and any such activity will result in the removal of profits and potential account closure.
Signs of gambling behaviour include trading and or increasing risk during news events, abusing max daily DD in 1 trade or splitting large trades into smaller positions and drastically altering trade durations to capitalize on volatility. If these practices are violated, your account may be flagged and potentially terminated.
To avoid gambling, always adhere to a solid risk management plan, limit your risk per trade, and make decisions based on rational analysis rather than emotions or market hype. Our goal is to support traders who prioritize consistent, profitable strategies and responsible risk management.
One Sided Betting
One sided betting refers to the practice of repeatedly opening multiple positions in one direction without conducting adequate market analysis. For example, a trader may repeatedly enter sell positions with the expectation that one will eventually result in a substantial profit. At Equity Edge, such activity is strictly prohibited, as it constitutes speculative behavior, lacks analytical justification, and exposes traders to elevated levels of financial risk.
Impulsive Decision Making
Impulsive decision-making refers to the act of frequently entering trades in opposite directions without performing sufficient analysis. For example, a trader might open a buy position, then immediately switch to a sell position, repeating this cycle in pursuit of profit. At Equity Edge, this behavior is strictly prohibited, as it reflects speculative trading, lacks analytical reasoning, and exposes traders to unnecessary financial risk.
Martingale
Martingale is a high-risk strategy where a trader increases the size of each subsequent trade after a loss, with the goal of recovering previous losses. For example, after a losing position, a trader may double the next trade size to offset prior losses. At Equity Edge, the use of Martingale strategies is strictly prohibited, as it lacks sound risk management principles, and exposes traders to excessive risk.
Spamming
Spamming the order book is a manipulative trading practice that involves placing a large number of trades seconds apart to create a false or misleading market activity.
Example of spamming: A trader enters several 0.1-lot orders in rapid succession rather than a single order with the equivalent total size.
Full Porting
Full Porting is when traders abuse their starting max daily drawdown in 1 trade or split larger trades into smaller positions in order to go undetected. Abusing max daily drawdown refers to risking near your entire starting daily drawdown or exceeding it on a single position or multiple open positions.
Using Expert Advisors (EAs)
The use of Expert Advisors (EAs) is not allowed on Instant Accounts.
Copy trading across accounts is also not allowed.