What trading strategies are prohibited according to the rules?

What trading strategies are prohibited according to the rules?

At ShareAFunds.com, certain trading strategies and practices are prohibited to maintain a fair and effective trading environment. Here’s a detailed list of prohibited trading strategies and practices:

  1. Cheating and Manipulation:

    • Any strategy designed to artificially inflate performance or bypass system rules is strictly prohibited. This includes using strategies that exploit loopholes or manipulate trading conditions.
  2. Risk-Free Profit Strategies:

    • Strategies that aim to generate risk-free, consistent profits using demo accounts or simulated environments are not allowed. Traders must engage in realistic trading practices that reflect real market conditions.
  3. Excessive Scalping:

    • High-frequency trading or scalping strategies that exploit micro-market movements excessively, especially around major news events, may be restricted. Trading must comply with specific rules regarding news events and market volatility.
  4. Copy Trading:

    • Using copy trading services or automated trading systems that mirror other traders’ strategies is not allowed. All trading must be performed personally and should reflect the trader’s individual strategy and analysis.
  5. High-Risk Strategies:

    • Employing strategies that involve extremely high risk or leverage beyond the allowed limits is prohibited. Traders must adhere to specified leverage and risk management rules.
  6. Arbitrage:

    • Arbitrage strategies that exploit price differences between markets or instruments to gain risk-free profits are not permitted. All trades should be based on genuine market opportunities and analysis.
  7. Fake or Artificial Orders:

    • Placing orders that are intended to manipulate market conditions or create false signals is prohibited. All orders must be genuine and executed with the intention of actual trading.
  8. Unapproved Automated Systems:

    • Using unapproved automated trading systems or bots that operate without proper authorization is not allowed. Any automated systems must be reviewed and approved if applicable.
  9. Gambling or Punting:

    • Trading strategies that resemble gambling or speculative activities, rather than informed decision-making, are prohibited. Trading must be based on sound analysis and risk management.
  10. Account Churning:

    • Excessive trading or frequent opening and closing of positions to generate commissions or inflate activity is prohibited. Trading must be purposeful and align with market conditions.

Enforcement and Consequences:

  • Violating these prohibited strategies can result in penalties, including warnings, account suspension, or termination. Traders are encouraged to familiarize themselves with all trading rules and guidelines to ensure compliance.

For further details on prohibited strategies and trading practices, refer to ShareAFunds.com’s Terms of Use and trading rules.