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Are Martingale Systems and Arbitrage Trading allowed?
Are Martingale Systems and Arbitrage Trading allowed?

No, these trading systems are not allowed due to the high-risk involved and the inability to profit in real markets.

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Written by FundingTraders.com Support
Updated over a week ago

At FundingTraders, we maintain strict guidelines on trading strategies to ensure a secure and sustainable trading environment for all our traders. Consequently, we do not permit the use of Martingale Systems or Arbitrage Trading strategies within our platform.


Martingale System: Although a Martingale trading system may show the potential for profitability, it is often associated with significant drawdowns, particularly when considered in a large sample size. Furthermore, the manual use of the Martingale system carries inherent risks, as even a minor human error can result in substantial account damage. These factors make the Martingale system an unattractive trading strategy for our firm. We prioritize traders who can effectively manage risk and adhere to our trading rules, ensuring a stable and disciplined trading approach.

To put a clear line, a trader may only add up to one position on an already losing trade idea. This position may not be of a larger size than the first.


Arbitrage Trading: Arbitrage trading involves exploiting minor price differences between identical or similar assets in multiple markets. While this strategy can be profitable, we do not allow it within our platform. By restricting the use of Martingale and Arbitrage strategies, we aim to allocate capital to traders who employ more sustainable and longevity-oriented trading strategies. This approach helps maintain a fair and competitive trading ecosystem for all our traders while minimizing unnecessary risks associated with these strategies.


Summary:
No | Strategies that use any concept related a martingale system and arbitrage trading is not allowed.

Martingale System

Despite a martingale trading system having the possibility of being profitable, sharp drawdowns are assured in a large sample size. In addition, if the martingale system is used manually, a minor human error is more than enough to cause great damage to the account

This makes it an unattractive trading strategy for our firm. We want traders that can control their risk well and not constantly breach trading rules.

To put a clear line, a trader may only add up to one position on an already losing trade idea. This position may not be of a larger size than the first.

Arbitrage Trading

Arbitrage trading is making profits from exploiting tiny differences in price between identical or similar assets in two or more markets.

Limiting these trading strategies will allow us to allocate capital to traders that have more sustainable strategies and higher chances of longevity.

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