Skilled traders are welcome!
We don't restrict your trading style or strategy. However, cheating or abusing the simulated environment is not allowed and violates our Terms of Use.
We do not allow cheating
Strategies that are deemed "cheating" or not reflective of actual market conditions are not allowed and will result in a breach of our Terms of Use. Strategies that only generate risk-free, consistent profits in a demo environment are not allowed, as they cannot be replicated in the Live Markets. Funded Traders must treat their accounts as if they are live. Any use of such strategies will result in account closure.
Additionally, account management by a third party, such as "pass your challenge" or copy trading services, is strictly prohibited and will lead to the rejection of the accounts and a permanent ban from all Secure The Bag services.
Strategies that are prohibited
Using any of these strategies will lead to account breach and potential banning from our platform.
Grid Trading
Grid trading is prohibited due to the risks it poses. It involves placing inverse buy and sell orders of the same instrument with the same or similar risk, which can lead to market manipulation, over-leveraging, market instability, and a potential risk-free profit. To prevent large drawdowns and over-leveraging, it is essential to have a well-defined risk management strategy.
Account Sharing or Account Sale
Account sharing or account sales is the act of sharing or selling funded accounts from one person to another. This goes against our Terms of Services and will result in being banned from Secure The Bag.
Martingale Trading
Secure The Bag's Terms of Use prohibit the use of Martingale as a trading strategy. Martingale is a system based on increasing the size of the investment after each loss, with the expectation that a winning trade will recoup all previous losses and yield a profit. This type of activity is considered gambling and is highly risky, as it can result in substantial drawdowns and the loss of all capital.
It is essential to have a sound risk management strategy in place and to avoid investing all of one's funds in a single trade.
High-Frequency Trading (HFT)
High-Frequency Trading (HFT) is a trading strategy that uses advanced computer algorithms and high-speed telecommunications networks to execute a large number of trades in a very short time. However, HFT is not allowed as it can lead to market manipulation, create an unfair advantage, and cause instability in the market.
We expect all traders on our platform to use our services in a fair and honest way and to comply with all laws, regulations, and our Terms of Use.
Collusion Between Users
An individual or group of individuals may engage in a trading strategy known as cross-account trading or collusion. This involves opening multiple accounts within a financial institution and placing trades in the same direction (i.e., buying or selling on the same asset across all accounts). This practice is considered a form of market manipulation.
Hedging or Group Hedging Across Multiple Accounts
Individuals or groups can use a trading strategy called hedging or group hedging, where they open multiple accounts with a financial institution and place trades in opposite directions (i.e., buy and sell) on the same asset. In a real market, this would not yield any profit as the positions are hedged in both directions. However, when trading with a prop firm, one account could generate a loss for the firm while the other account could generate a profit, resulting in risk-free profits. This strategy is not allowed and will lead to a ban from Secure The Bag and its services.
Use of a Delayed Data Feed
Using a data feed that has a delay or lag in providing market data, such as stock prices or trading volumes, gives a trader an advantage over other traders who must use real-time market data. This is not allowed in the financial market, as it is considered unethical.
Trading on Delayed Charts
Trading on charts with a delay or lag in their updates is considered unethical and is not in line with the operations of the real financial market.
Use of guarantee of compliance with limit orders (including take profit and stop loss)
The use of limit orders such as take profit and stop loss to guarantee compliance is prohibited. This is because it can be used to bypass regulatory restrictions and manipulate the market. This abuse is made possible due to the simulated nature of trading on a platform. Traders may be able to avoid the fills they would have received in the real market, making this strategy non-compliant with real financial market operations.
Note: This rule is oriented to avoid traders to take advantage of pre-market gaps that tends to occur when the markets open.
Soft Breaches / Warnings
The following are examples of trading behaviors and activities that will result in soft breaches and warnings, which if not addressed promptly, could escalate to the breach of your account and possible ban from Secure The Bag and its services.
Use of Platform or Data Freezing Due to a Demo Server Error
The use of platform or data freezing due to a demo server error that can lead to unfair advantages and misleads the traders.
If we encounter server errors that prevent traders from closing trades for stop loss or take profit, we will investigate our logs and work with affected traders to resolve the issue. To help us identify any freezing issues, please take screenshots or screen recordings. Abusing the platform due to a demo server error will result in a possible permanent ban from Secure The Bag and its services.
News Trading
News trading is a strategy employed by traders to take advantage of the market's reaction to economic or political news and events. This could include interest rate decisions, GDP reports, and political announcements. However, news trading can be risky, as the market's response to news events is often unpredictable and could potentially lead to significant losses.
To reduce this risk, Secure The Bag has certain restrictions for Funded Accounts when trading during major macroeconomic reports. This includes not being filled at an unrealistic price due to the volatility of the event.
For more information, please refer to this article.