Our Company’s Policy on Responsible Trading

What is Responsible Trading?

Responsible trading involves using strategies and behaviors that adhere to professional standards while minimizing risks for both the trader and the company. A disciplined and calculated approach to trading helps ensure long-term stability and consistent performance.

Undesirable Trading Practices

1. Excessive Margin Usage & High-Risk Trading
   Q: What does this mean?
   Using full leverage or a significant portion of available margin in a single trade or within a short period.
   Trading Style:
   High-risk trading with maximum exposure, often without proper risk control.
   Consequences:
   Increased risk of liquidation.
   Exceeding established risk limits.
   Potential account suspension or profit annulment.

2. Emotional and Reckless Trading
   Q: What does this mean?
   Making trading decisions based on emotions, such as "revenge trading" or increasing the position size after a loss.
   Trading Style:
   Uncontrolled and impulsive trading without systematic analysis.
   Consequences:
   Inconsistent results and chaotic trading.
   Potential account suspension or profit annulment.

3. Overtrading
   Q: What does this mean?
   Opening an excessive number of trades without a structured strategy, often under psychological pressure.
   Trading Style:
   Rapidly opening positions, which leads to high commission costs and rapid capital depletion.
   Consequences:
   Increased trading fees.
   Higher risk of liquidation.
   Faster capital losses and potential account suspension.

4. High-Frequency Trading (HFT) and Tick Scalping
   Q: What does this mean?
   Using automated or manual strategies to execute rapid trades aimed at capturing small price movements.
   Trading Style:
   Ultra-short-term trading that exploits market inefficiencies.
   Consequences:
   Excessive strain on trading systems.
   Possible denial of payouts or account suspension.

5. Arbitrage Strategies
   Q: What does this mean?
   Exploiting price differences between markets to achieve risk-free profits.
   Trading Style:
   Using market discrepancies through hedge arbitrage, latency arbitrage, or similar tactics.
   Consequences:
   We may view this as unfair trading, leading to account suspension.

6. Poor Capital Management

   If an account is passed in just 1-2 trades, it may indicate excessive risk-taking and fall under the prohibited "all or nothing" strategy. This approach violates the rules because:

   High risk exposure – Using an oversized position or high leverage to quickly meet account requirements creates an unstable trading strategy.

   Lack of risk management – If a trader places everything on one or two trades, it means there is no proper risk management system in place, which is a fundamental part of responsible trading.

   Speculative nature – Such actions resemble gambling rather than a well-thought-out trading strategy.

   Violation of platform rules – Most prop trading firms prohibit "all or nothing" strategies as they do not align with long-term stability goals.

   To avoid violations, traders should maintain balanced risk exposure, use a reasonable stop-loss to take-profit ratio, and diversify risk across multiple trades.

7. All or Nothing Strategy
   Q: What does this mean?
   This strategy involves holding a trade while using an excessive portion of available margin to chase quick gains or to pass evaluation challenges.
   Trading Style:
   A high-risk approach that uses nearly half of your available margin on a single trade, disregarding proper risk controls. In contrast, responsible traders typically risk only 1-1.5% per trade and up to 30% of their margin.
   Consequences:
   Increased risk of severe losses and liquidation.
   Violation of established risk management principles.
   Potential account suspension or profit annulment, as well as reissuance of phases due to irresponsible trading practices.

8. Reverse Trading
   Q: What does this mean?
   Engaging in trades that intentionally or completely result in losses, indicating reckless risk-taking.
   Trading Style:
   High-risk behavior that resembles deliberate account depletion.
   Consequences:
   Permanent account suspension without the possibility of reinstatement.

Consequences of Irresponsible Trading

Traders who violate these responsible trading principles may face the following actions:

• Reduced leverage and margin limits.
• Restrictions on daily trade volume to prevent excessive scalping.
• Limitations on position sizes.
• Risk caps per trade to control exposure.
• Account suspension for serious violations.

What Do We Support?

We support traders who:

• Adhere to strict risk management practices.
• Use structured and well-planned trading strategies.
• Strive for long-term, stable performance.

Our company does not support or permit trading practices based solely on chance without a defined strategy or proper risk management. Any form of reckless trading that ignores sound financial principles is strictly prohibited.

If a trader repeatedly engages in activities that violate this policy, the company reserves the right to impose sanctions, including, but not limited to:

• Profit annulment.
• Account suspension.
• Permanent account closure.

Our Mission

As a proprietary trading firm, our goal is to build strong partnerships with traders who demonstrate a consistent and robust trading strategy. To ensure a successful collaboration, we conduct a comprehensive review of all accounts—both active and deactivated—where the trader has been involved. This includes an in-depth analysis of trade history and relevant account activities, regardless of their current status. This process allows us to maintain transparency and gain a thorough understanding of the trader’s overall performance. Given the nature of the trading environment, more compliance requirements must be met to align with our standards.

Responsible trading is the key to achieving stable profits and building a successful trading career.