Prohibited Trading Strategies

To maintain a fair trading environment, certain trading strategies are prohibited for all traders, regardless of the plan type. These strategies include:

Grid trading involves utilizing hedging positions across multiple accounts to guarantee profits on at least one account. This strategy is prohibited as it creates an unfair advantage and manipulates risk exposure.

Latency arbitrage is a high-frequency trading strategy that exploits price discrepancies caused by differences in execution speed across various trading platforms or exchanges. This practice is not allowed due to its reliance on unfair execution advantages.

Reverse arbitrage, also known as reverse merger arbitrage or negative spread arbitrage, takes advantage of discrepancies in related financial instruments' prices. This type of trading is restricted as it often leads to market distortions.

Tick scalping is a trading method where traders aim to profit from small price movements (ticks) by executing trades over very short timeframes, often holding positions for seconds or minutes. This strategy is restricted as it can cause excessive market noise and liquidity issues.

Trading on multiple accounts that are not owned by the trader, or using different names or identities to engage in trading activities, constitutes an account management violation. Unauthorized account management is strictly prohibited.

Copy trading or signal trading, where traders replicate the positions or strategies of other traders, is not permitted as it may involve unauthorized trade sharing or excessive reliance on third-party strategies.

Important Clarification:
Copy trading between accounts owned by the same trader is allowed. However, copying trades from another trader’s account is strictly prohibited and may result in account disqualification.

High-frequency trading involves executing a large number of trades within extremely short timeframes. To prevent abusive trading behavior, the following restrictions apply:

Martingale is a strategy where traders increase their position size after each trade to recover losses or amplify winnings. This approach is prohibited due to its high-risk nature. Martingale strategies are evaluated without considering the symbols or assets used.

Hedging between accounts occurs when a trader offsets potential losses in one account by taking the opposite position in another account. This practice is prohibited as it manipulates risk exposure and guarantees profit in at least one account.

Guaranteed limit orders, which provide traders with certainty regarding execution prices, are not permitted. These orders create an unfair trading advantage.

Data feed manipulation involves the intentional alteration or distortion of financial market data transmitted to traders. This fraudulent activity is strictly forbidden.

Trading based on delayed price data instead of real-time market information is prohibited. Using outdated price charts can lead to unfair advantages and market distortions.

TX3 reserves the right to terminate accounts that violate these restrictions. For more details, please refer to TX3’s Right to Terminate Accounts.