What are the Prohibited Strategies?

Prohibited Strategies:

High-Frequency Trading (HFT)

• Using High-Frequency Trading (HFT) bots, Expert Advisors (EA), and HFT algorithms is not allowed on our platforms under any circumstances.
• HFT involves using advanced computer programs and high-speed networks to make lots of trades very quickly, often in fractions of a second. We prohibit HFT because it can lead to market manipulation, give unfair advantages, and cause market instability. If any trader is found using HFT, they will violate our Terms of Use and will be banned from trading on our platform. For examples of HFT abuse, please refer to the sections on Trading on Delayed Data Feed and Trading on Delayed Trading Chart below.
• HFT includes complex trading strategies that execute many orders in a very short time. One prohibited HFT strategy is Latency Arbitrage, which exploits the time delay between when a trade is made and when market data is received.

Hedging or Group Hedging Across Multiple Accounts

• Hedging or group hedging across multiple accounts, on the other hand, refers to a trading strategy where an individual or group of individuals open multiple accounts with the same firm or different firms and place trades in opposite directions (i.e., buy/sell), on the same asset, across all accounts.
• This can be done in an attempt to profit from the price movements of an asset without having to take on significant market risk.
• This type of trading behavior is also known as "Arbitrage" and "Grid Trading" and is not permitted at Audacity Capital. 
• However, while trading with a Firm, you would be losing the firm money on one account and generating a profit on the other, resulting in risk-free profits, which are violations of compliance with the functioning of the real financial market.

Martingale Trading

• The Martingale trading strategy is a way of trading where you increase the lot size that you trade after each loss, hoping that a win will recover all the previous losses and make a profit. This method is like gambling and is very risky because it can lead to big losses and losing all your money if you have a long losing streak.
• In theory, this strategy always works, but in real life, it only works if you have unlimited money. Companies set a limit on how much you can lose, and traders should plan their strategy based on this limit.
• It's important to have a clear plan to manage risks and not risk your entire account on one trade. Therefore, this kind of trading is not allowed at Audacity Capital.

Note: The Risk team reviews the account when you pass the challenge or request a payout and if any nefarious activities are found then AudaCity Capital has the right to ask the traders to change their trading strategy or even breach the account in some cases.