Prohibited trading strategies include:
Taking advantage of unrealistic prices or trade opportunities, such as exploiting mispricing or front-running price feeds
Latency trading
Arbitrage trading
High-frequency trading
Reverse trading/group hedging
Spamming the order book
Group trading/signal following
Additionally, account management services are not allowed: all accounts and trades must be handled by the trader whose name is on the account.
Remember, if you are aiming to secure a qualified analyst account of up to $200,000, taking these rules seriously is essential. Invest the time to understand the rules, objectives, and requirements thoroughly.
More on Spamming the Order Book
What is order book spamming?
Order book spamming involves placing a large number of orders in the order book to create a misleading impression of market activity. This manipulative practice can disrupt market integrity, provide unfair advantages to certain traders, and strain trading systems.
Why is order book spamming prohibited?
Unfair Advantage: Traders who use this tactic can gain an unfair edge, particularly in a simulated environment where the repercussions are less severe than in live trading. This undermines the fairness and integrity of the trading platform.
System Strain: Excessive orders can overwhelm trading platforms and systems, causing delays and affecting overall market stability and efficiency. This can lead to slower response times and reduced performance for all users.
Example of order book spamming:
A trader entering multiple orders (e.g., 0.1 lots each) over a short period instead of placing a single order with all the intended buying power (e.g., 1 lot). This activity can be seen as an attempt to manipulate the price feed in a simulated environment.
What happens if I violate any of these rules?
Alpha Capital Group holds the right to enforce strict consequences in the event of a policy violation:
Alpha Capital Group reserves the right to terminate agreements immediately in the event of any breach by the trader.
The profits from invalid trades, or the entire profits from that payout window (depending on the type of breach), will be removed, and the remaining payout will be postponed.
All passed evaluations are subject to review, and traders found guilty of policy ignorance or abuse will not advance to the Qualified phase.