Are EA/Bots/HFT Allowed?
At FundingTraders, we embrace innovation and automation in trading by allowing the use of EAs (Expert Advisors) and Bots to enhance your trading experience. These tools can streamline strategies and improve trading efficiency.
Permitted Automation:
EAs/Bots: Allowed, particularly those focused on risk and trade management, as they promote disciplined and sustainable trading.
If you intend to use an EA or Bot, consult with us to ensure eligibility and compatibility with our platform.
Restricted Practices:
High-Frequency Trading (HFT): Not allowed due to the challenges in replicating such strategies in live market conditions. This includes trades lasting 15 seconds or less, which are unsustainable due to latency limitations between funded traders' accounts and our master account.
Off-the-Shelf EAs: Pre-built EAs purchased online are not permitted unless they serve risk management purposes.
Grid Trading EAs: Not allowed.
Hedge Trading Systems: Not allowed.
Scaling-In During Drawdowns: Only permitted once per drawdown.
Unrealistic Trading Practices
What are Unrealistic Trading Practices?
Unrealistic trading practices refer to strategies or behaviors that are not indicative of genuine market analysis or sustainable trading. These include trades with extremely short holding times, which do not reflect realistic market conditions.
Volume-Weighted Average Holding Time (VWHT) Requirement:
To promote realistic trading behavior, all trades must meet a minimum VWHT threshold.
Holding Time: Duration (in minutes) a position is held before being closed.
Trade Volume: Size of the position for each trade.
Minimum Requirement: The VWHT must exceed 2 minutes across all trades within the account.
Formula for VWHT:
Important Guidelines for Unrealistic Trading Practices:
VWHT Below 2 Minutes:
If your VWHT is less than 2 minutes, your account will be flagged for Unrealistic Trading Practices.
Action Taken: The account will be terminated with the reason: "Unrealistic Trading Method."
HFT Restrictions:
High-frequency trading strategies (including trades lasting 0–15 seconds) are considered unrealistic and unsustainable due to the inability to replicate such methods under live market conditions.