Are there any prohibited trading practices and or methods?

6 min. readlast update: 12.08.2025

These are the general prohibited trading methods. For more detailed information about the specific conditions of each Evaluation, please refer to the dedicated sections that outline the rules for the 1-Step Evaluation, 2-Step Evaluation, and Instant Funding Evaluations.

We believe in fostering individual trading skills and promoting transparency within our community, encouraging traders to showcase their skills, discipline and expertise.

In line with this commitments we've established guidelines to ensure a safe and transparent trading environment while protecting capital. These guidelines promote responsible trading and mitigate risks associated with certain strategies.

 Prohibited Practices

Holding Shares during Earnings

Holding a Single Share Equity CFD position into an earnings release pertaining to that underlying equity.  To avoid being in breach of this rule, you must close all such Single Share Equity CFD positions by 3:50 pm Eastern Time on the day of the release, if an aftermarket release, or on the preceding day, if a before market open release.  Violation of this rule will constitute an immediate, hard breach of your account and any gain or loss on said position will be removed from any calculations

Arbitrage and Latency

Attempting to exploit any system bugs, perform any latency arbitrage (trades using an external or slow data feed) or any other form of arbitrage in your account with another account with the Company or any third-party company, as determined by the Company in its sole and absolute discretion. Arbitrage traders exploit price differences, potentially causing prices to stray from their fundamental values and introducing discrepancies in market pricing. One method involves engaging in statistical arbitrage, where a trader concurrently buys and sells correlated instruments, leveraging historical price patterns to identify opportunities.

System Exploits

The use of unfair advantages, such as taking advantage of platform or data freezing due to errors on demo servers, is strictly forbidden. This policy ensures fairness among all traders and prevents any deceptive practices. Traders caught engaging in such behavior will undergo investigation, and appropriate actions, including potential access removal from our demo servers, may be taken. Should traders encounter server issues, they are urged to promptly notify Trading Cult's support team.

Hedging

Execute, either independently or in collaboration with any other parties, including across interconnected accounts or accounts held with different entities, transactions, or combinations of transactions with the intent of manipulating trading activities. This could involve actions such as simultaneously initiating opposing positions. Hedging is not allowed between two different accounts. It is allowed only on the same account belonging to one trader within the 2 Step Evaluation.

High-Frequency Trading (HFT) and Tick Scalping

Strategies that place trades in rapid succession or aim to profit from very small price movements are not allowed.

Sharing your account

Account sharing refers to the unauthorized practice of distributing or selling Trading Cult accounts to other individuals or entities. This behavior violates Trading Cult's Terms and Conditions and is strictly prohibited. A zero-tolerance approach is maintained towards account sharing due to various reasons related to security, fairness, and compliance.

ALL in 1 Bet

It is against the intended spirit of trading and fairness to reach the profit target through a single trade. We expect our traders to demonstrate consistent trading behavior, adhering to proper Risk Management practices, and refraining from attempting to achieve the target through one trade. This rule applies to any trade where the profit generated from one position is equal to or exceeds the account’s profit target. 

Copy Trading & Reverse Copy Trading

Trading services such as copy trading, account management, and "pass my challenge" are strictly prohibited. Traders are expected to operate independently. Trading Cult employs an automated flagging system to detect significant similarities between trades made by different accounts, including factors like opening and closing prices, lot sizes, and symbols. If your account triggers a flag, it will undergo manual review.

Can automated trading algorithms, software, EA’s or bots be used? 

TradingCult encourages traders to showcase their skills and expertise without relying on automated trading algorithms, software, Expert Advisors (EAs), or bots. Our goal is to evaluate traders based on their individual abilities rather than the use of automated tools. To ensure a fair and transparent assessment of each trader's performance, the use of such automated systems is prohibited. Any violation of this policy will result in a hard breach and the subsequent failure of the challenge.

Is news trading permitted?

Traders must refrain from opening any trades within a defined time period prior to or after major news announcements. You may hold existing positions during this time, but if a trade closes within the window, whether by Take Profit, Stop Loss, or manual action, it will still count as news trading. Any trade that opens or closes inside the restricted timeframe will be treated as a breach and will cause the Funded Evaluation to fail.

  • Trading Gold (XAUUSD) during any high-impact news event from G7 countries (United States, Canada, European Union, France, Germany, Italy, Japan, and the United Kingdom) will result in a breach.
  • Trading during any US high-impact news event will result in a breach across all instruments, including Forex, Metals, Indices, Stocks, and Crypto.
  • For currency pairs, trading during high-impact news related to either currency in the pair will result in a breach. For example, trading CADJPY during CAD or JPY news will result in a violation.

Major news events are categorized in our Economic Calendar as High Importance and include but are not limited to:

  • Consumer Price Index (CPI)
  • Producer Price Index (PPI)
  • Gross Domestic Product (GDP) releases
  • Unemployment Rate announcements
  • Non-Farm Payrolls (NFP)
  • Federal Open Market Committee (FOMC) meetings and statements
  • Central bank interest rate decisions (e.g., Federal Reserve, European Central Bank, Bank of England, etc.)
  • Retail Sales reports
  • Consumer Confidence Index (CCI)
  • Purchasing Managers' Index (PMI)

 You can find the Economic Calendar here

Prohibition of High-Risk, Gambling, and Exploitative Trading Practices

Engaging in trading strategies that involve inappropriate risk management, exploit statistical vulnerabilities, or exhibit gambling-like behaviour to gain an unfair advantage is strictly prohibited. This includes, but is not limited to:

  • Excessive Risk-Taking: Trading patterns involving substantial exposure to risk.
  • "All-In" Trading: Committing a substantial portion of available capital or margin to a single trade.
  • Improper Use of Leverage: Risking a significant portion of the account in one trade or across multiple one-directional trades or positions.
  • Inconsistent Strategies: Trading without a consistent approach, either within a single account or across multiple accounts/challenges.
  • Account Rolling: Continuously purchasing multiple evaluation challenges and recklessly trading them undermines the integrity of your strategy.

Trading behaviours that involve high margin utilisation, binary event trading (such as consistently placing trades just before major economic news releases), or excessive leverage are not allowed. Such practices undermine sound risk management principles and compromise the integrity of responsible trading.

Traders are expected to adhere to disciplined, well-managed strategies in line with established risk management standards. If found engaging in these prohibited practices, the Company reserves the right to close the account immediately, with potential forfeiture of any fees owed to the trader, following a thorough review, at the Company's sole discretion.

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