Within the broader public perception, a misconception lingers, linking financial market trading to gambling. This misconception is often fueled by traders exhibiting behaviors reminiscent of gambling. To uphold the integrity of our trading community and cultivate an environment that champions responsible trading, it becomes imperative to address these tendencies.
Some traders, enticed by the prospect of quick profits, may embrace high-risk strategies that, more often than not, decrease their likelihood of success. While financial markets inherently entail risks, it is paramount to delineate between legitimate trading practices and gambling inclinations.
At TopTier Trader, our commitment revolves around protecting our traders and fostering opportunities for those who approach the market with responsibility. Should we suspect that a trader is employing our services for gambling purposes, we retain the right to implement measures designed to mitigate associated risks. These measures may encompass adjustments to leverage or modifications to earnings. It is crucial to emphasize that such actions will be taken judiciously, following a thorough assessment by our risk management team, targeting behaviors falling within specific prohibited categories.
Violations:
1. Account Rolling/Churning:
A concerning practice known as account rolling or churning has surfaced. This involves traders acquiring several evaluation accounts simultaneously, employing a rolling strategy where certain accounts are deliberately allowed to fail while prioritizing the completion of others. Essentially, this tactic aims to navigate evaluations without genuinely showcasing the trader's skill and proficiency in the market. For instance, a trader might engage in acquiring multiple evaluation accounts concurrently, strategically allowing some to falter while focusing efforts on completing others to create the illusion of trading prowess.
2. Gambling/Betting Behavior:
A red flag is raised when individuals exhibit behavior akin to gambling or betting. This involves participating in trades that resemble high-stakes gambles, characterized by the absence of a well-defined plan or strategy. For instance, a trader might impulsively invest a significant portion of their capital in a single trade, driven more by chance than informed decision-making. Another example could be a trader consistently relying on speculative news without conducting thorough research, essentially treating the market as a game of chance rather than a platform for strategic and informed trading.
3. Group Hedging:
Within the trading realm, group hedging represents a prohibited strategy involving the simultaneous trading of opposite positions on the platform. This collaboration occurs when two traders coordinate efforts to exploit the platform by taking opposite positions on the same currency pair simultaneously. In this scenario, while one trader opts for a long position, the other strategically chooses a short position, resulting in a net-zero position on the platform. Although this may initially seem like a neutral stance, it undermines the principles of fair and transparent trading. Such group hedging strategies are strictly prohibited, as they pose a threat to the integrity of the trading environment.
4. Over-exposure:
Over-exposure is a concerning practice where traders are over-exposed to a specific asset relative to their account size, significantly increasing the potential for both gains and losses. This occurs when traders utilize more leverage than their accounts can sustainably handle, particularly in relation to the maximum lot sizes set for their account size and asset class. For instance, if the market moves unfavorably, such over-exposure could quickly breach the drawdown limits, posing a considerable risk to both the trader and the overall stability of the trading environment.
Consequences:
Consequences for Challenge Accounts:
Upon passing Tier 2, challenge accounts will undergo a manual review for violations of any policies. If a violation is found:
First Violation: Retry the Tier(s) affected by the violation alongside a warning.
Second Violation: The challenge will be deemed as failed, and the trader will no longer be eligible for the respective funded account associated with that challenge.
Repeated violations could lead to a possible ban from the platform. Upon receiving a retry account clients will only be required to make the amount that was found in violation for the respective Tier. If the violation amount exceeds the profit target then clients would be required to achieve the profit target for the respective Tier.
Consequences for Funded Accounts:
Upon payout request, a review will be conducted, and any trade(s) found in violation that resulted in a profit will be deducted.
Detailed Consequences for All Accounts:
Below is a detailed list of violations along with their consequences for both challenge and funded accounts:
Latency Arbitrage:
Immediate ban from the platform.
Reverse Arbitrage:
Immediate ban from the platform.
Tick Scalping:
Immediate ban from the platform.
Data Feed Manipulation:
Immediate ban from the platform.
Trading on Delayed Charts:
Immediate ban from the platform.
Group Hedging:
Immediate ban from the platform.
Account Management:
Immediate ban from the platform.
High-Frequency Trading:
Issuance of a warning along with a deduction on both challenge and funded accounts. A ban will be imposed if the frequency is excessively high.
Hedging Between Accounts:
Issuance of a warning along with a deduction of profit on both challenge and funded accounts. Repeated offenses will result in a ban from the platform.
Grid Trading:
Issuance of a warning along with a deduction depending on the case, or a ban from the platform on both challenge and funded accounts.
Account Churning/Rolling:
Issuance of a warning along with a deduction of profit on both challenge and funded accounts. Repeated offenses will result in a ban from the platform.
Martingale:
Deduction of profit on both challenge and funded accounts.
Signal Trading:
Deduction of profit on both challenge and funded accounts.
Guaranteed Limit Orders:
Deduction of profit on both challenge and funded accounts.
News Trading:
Deduction of profit on both challenge and funded accounts.
Overleveraging Violation:
Deduction of profit on both challenge and funded accounts.
EA Trading (without add-on enabled):
Deduction of profit on both challenge and funded accounts or a ban, depending on the specific EA used.
Additional Measures:
Payout Rejection or Reduction:
The firm reserves the right to reject a payout in its entirety or reduce the payout amount depending on the severity of the violations.
It is crucial to acknowledge that the examples outlined above serve an illustrative purpose, aiming to elucidate general concepts related to each violation. This list is not exhaustive, and the scenarios leading to violations can manifest in diverse ways. Traders should understand that risk management policies cover a wide spectrum of behaviors, and adherence to ethical trading practices is paramount. While the provided examples offer guidance on potential violations, they do not circumscribe the scope of actions that may breach risk management guidelines. Traders are strongly advised to meticulously review the specific risk management and strike policy of the trading platform, gaining a comprehensive understanding of acceptable practices and consequences.
Our risk management and strike policy establish a transparent framework dedicated to upholding a responsible trading environment on our platform. We underscore the significance of embracing responsible trading practices for the sustained success of our traders.
Please note that anyone who had previously received a deduction, payout rejection, had to do a retry, or was banned when the strike policy was still in place would not have those decisions reversed with the removal of the strike policy.